02-03-2010 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, February 3rd, 2010
Meeting Minutes
Members present in bold.
Members
Tim Ulrich Steve Jansick
Chad Czmowski Jim Haugen
Staff
Miles Seppelt, EDA Director
Patrick Brama, EDA Assistant
Steve Heintz, Assistant Finance Director
Liaison
Bill Corby, Chamber President
Call to Order
Mike Retterath Daron Vanderheiden
Mike McGraw
Tim Ulrich called the meeting to order at 11:37AM.
II. Approve Agenda — No action.
III. Review Meeting Minutes
A. December 23rd Board of Directors
M /S /P: McGraw, Retterath to approve the minutes as written; passed unanimously.
B. December 16th Finance Team
M /S /P: Jansick, McGraw to approve the minutes as written; passed unanimously.
IV. Review of December Financial Statements — Finance Director
Assistant Finance Director Steve Heintz presented the December EDA financials:
• Operations had a total of $160,742 in cash available. $102,391 was unreserved and
$56,736 was reserved for future land purchases, being proceeds from the sale of
land to Warrior Mfg. in 2005.
• For the month, $77,039 in revenue was received and expenditures totaled $9,671 —
primarily salary expense.
• The Economic Development loan fund has $86,544 in cash available, loans
receivable totaling $62,187 and $25,000 on deposit with MCCF. Loan repayments
totaled $680 for the month.
• The Downtown Loan Fund has $361,672 in cash available and loans receivable
totaling $690,573. Loan repayments totaled $7,780 for the month.
• The MIF loan fund has $171,939 in cash available and loans receivable totaling
$541,752. Loan repayments totaled $8,553 for the month.
V. Director's Report
Staff provided an update on the status of current projects:
A. Industrial Park
Staff indicated that work would resume in May. 90 days of street construction is pretty
much all that remains and the park will be 100% complete by August 2010.
B. NuCrane Manufacturing
Construction of NuCrane Manufacturing is on schedule. Currently, EDA is waiting for the
final equipment invoices from NuCrane to complete the MIF loan closing.
C. County EDA
County EDA Committee members are due to meet again on February 4, 2010 to review a
draft enabling resolution, program of work, staff job description and budget.
D. Company "X"
■ No new information
VI. Elect EDA Officers
Current
A.
President
Tim Ulrich
B.
Vice - President
Mike McGraw
C.
Treasurer
Steve Jansick
D.
Secretary*
EDA Intern
E.
Assistant Treasurer*
Jeremy Carter
* Can be non -EDA Board members
M /S /P: Haugen, Retterath to re -elect the current slate of EDA officers. Passed
unanimously.
VII. Review of 2009 Annual Report
Staff indicated that due the current load of projects, the annual report has not yet been
completed. Hopefully the report will be completed in time for the February meeting.
VIII. Contract with County: economic development project
EDA staff was recently contacted by a company that is seeking to establish an organic
greenhouse for the large scale production of vegetables for sale to twin cities supermarket
chains.
The company would heat their greenhouses from the waste heat generated from electrical
generators operated by Waste Management. These generators use methane generated by
the land fill for fuel.
The project would create 60 jobs within two years. The jobs would pay $15 per hour at start,
with full benefits.
Staff notified the county of this opportunity, and that initiated a conversation about the
possibility of the county contracting with the Hutchinson EDA for economic development
services for this project.
Staff has contacted DEED about this project, and a preliminary determination has been made
that the project is eligible for both JOBZ and the Minnesota investment Fund. Up to $500,000
of federal money could be available as a grant to the county. The county would lend the
money to the company for equipment, and as its is repaid, those dollars could form the basis
of a McLeod County revolving loan fund.
Successful completion of the project may also move the County EDA proposal closer to
reality.
Staff has put together a very rough estimate of how many hours would be needed to put
JOBZ into place and complete the MIF grant writing and implementation process.
The Board discussed this opportunity at length.
M /S /P: Jansick, McGraw to authorize EDA staff to contract with the county for this project and
to recommend and request approval by the Hutchinson City Council. Passed unanimously
IX. Review pricing of Industrial Park Lots
In conjunction with the city's engineer and finance director, EDA staff has reviewed the
pricing of lots in the new industrial park and is proposing the following pricing structure:
1 1 3.09 3.09 $92,700 $30,000
2 2 11.38 7.88 S236.400 S30.000
3 1 10.5 10.5 $315,000 $30,000 Sold to Warrior
3 3 6.99 3.18 $127,200 $40,000 5th Ave; Additional infrastructure
Outlot "A" 1.72 1.72 $51,600 $30,000 Sold to'Warrior!
Hackbarth Lot 5.65 5.65 $197,750 $35,000 5th Ave. Additional infrastructure & will need pond
Total, All Lots Sold $1,462,850
Owed to CIF $1,367,190
Net Profit 595,660
The methodology used to arrive at these prices was reviewed.
Discussion ensued.
M /S /P: Retterath, Czmowski to approve the industrial park lot pricing plan as presented.
X. Grant & Loan Applications
Storefront Revitalization Matching Grant
Hutchinson Health Care Hospital Auxiliary $740
25 Main Street North
M /S /P: Haugen, Jansick; to approve the grant request; passed unanimously.
Downtown Loan Program
Lorraine Meyer Building
2 Main Street
$35,000
M /S /P: Haugen, Jansick; to approve a loan in an amount not to exceed $35,000 and subject
to all necessary documentation being submitted. Jim Haugen abstained from the vote.
Passed unanimously.
XI. Other Business
■ Lots on 5th Avenue (5.65 acres & 5.7 acres)
Staff indicated that these two lots would need to be maintained in the summer and
inquired if they should be advertised for lease.
After discussion it was decided that it would be impractical to lease out the lots, due
to their small size. Instead staff will look for a local farmer to plant the lots with grass
for haying, on the understanding that there would be no rent and no compensation to
the farmer if the lots were developed.
■ Hwy 15 Corridor Resolution of Support
M /S /P: Retterath, McGraw to pass the resolution as presented.
XII. Chamber Update
Chamber President Bill Corby updated the EDA Board on current Chamber of Commerce
activities.
XIII. Set Next Meeting — February 24th
XIV. Adjourn
With no further business to attend to, the meeting was adjourned at 12:49 PM.
Respectfully Submitted,
Patrick J. Brama
EDA Assistant