09-22-2010 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, September 22 "d, 2010
Members present in bold.
MEETING MINUTES
Members
Tim Ulrich Steve Jansick Mike Retterath Daron Vanderheiden
Chad Czmowski Jim Haugen Mike McGraw
Staff
Miles Seppelt, EDA Director
Eric Browne, EDA Assistant
Jeremy Carter, Finance Director
Liaison
Bill Corby, Chamber President
I. Call to order
Tim Ulrich called the meeting to order at 11:38 AM
II. Approve Agenda — No Action
III. Review meeting minutes
A. August 25th Board of Directors
M /S /P: McGraw, Czmowski to approve the minutes as written. Passed unanimously.
B. August 18th Finance Team
M /S /P: Ulrich, McGraw to approve Finance Team minutes as written. Passed
unanimously
IV. Review of June financial statements — Finance director
• Cash available in operations is $128,303 (Accounts Receivable = $1,000)
• $56,736 is reserved (proceeds from Warrior land sale) and $65,045 is unreserved.
• $500 in rental income was received in August for the Wetherell property.
• The Economic Development Loan fund has $121,192 in cash available.
• The Warrior and Ashwill Industries loans are performing as required.
• Total assets in the Economic Development Loan fund are $207,076.
• Downtown revolving loan fund has $364,492 in cash available, loans totaling
$666,599 and $201,329 in capital assets (Cenex & Wright property)
• Loan repayments totaled $11,843 for the month.
• MIF Loan fund has $251,644 in cash available and loans receivable of $965,582.
• A total of $19,834 in MIF loan repayments came in during the month.
M /S /P: Haugen, Retterath to approve the financial report as presented. Passed
unanimously.
V. Director's Report
A. Industrial Park
1. Ribbon Cutting Event — Rescheduled until further notice. New post card invites will
be mailed within the next few weeks.
2. Chips Holding Company — Sale has been completed for $58,000; fund to be put in
the Community Improvement Fund. Construction to commence shortly.
3. Customer Elation Business Subsidies — City Council approved one year extension to
create the required 100 jobs.
B. County Project — Project finally moving forward. Financing is set up with paperwork still
to be completed. Public hearing to be set for business subsidy. Company decided
against MIF, but will proceed with JOBZ.
C. Buffalo Wild Wings
■ Construction has begun and expected to be up and running within a couple of
months.
D. Wetherell Property Update
■ Hazardous Materials Inspection complete; working through the many steps to
demolish.
E. Midwest Industrial Tool Grinding, Inc.
■ Leading the former HTI education building, with an option to purchase.
F. "Shovel Ready" certification for Energy Park
■ In the process of identifying costs for project
VI. EDA Levy & 2011 Budget
(EDA 2011 levy was revised downward due to legislative limits)
Staff noted that the EDA's property tax levy for 2011 will be lower than originally planned. In
keeping with the agreed upon 1.525% of city tax capacity the initial EDA levy request was for
$168,290.
However, declines in market values has resulted in a lower statutory limit, that being
$159,985. As such, the EDA's levy for 2011 will be limited to that amount.
The EDA Budget was reviewed. Due to very conservative budgeting of other revenues
(specifically land rent income), the EDA will be able to cash flow operations in 2011 without
any difficulty and will end the year "in the black."
No board action was taken
VII. MIF Loan Fund
(Request for LDO Designation and Transfer of Funds)
The MIF Funds for Warrior Manufacturing and Customer Elation can be de- federalized, which
would allow the grant money to go into the EDA Revolving Loan Fund and be used for other
projects without the federal CDBG regulations.
To accomplish this, the EDA has to request that the City Council designate it as a "Local
Development Organization (LDO)" and provide other documentation to DEED, which would
then give final approval for the de- federalization of MIF funds.
The Finance Team has reviewed this and are recommending approval.
M /S /P: Czmowski, Haugen to approve de- federalizing MIF funds and move those funds to
the Economic Development Loan Fund. Passed Unanimously.
VIII. Small Business Development Center
(Consider grant application to establish an SBDC sub - center here in Hutchinson)
Staff presented a CDBG Microenterprise Assistance Grant of up to $75,000 (two year
window) that could bring a sub - center back to Hutchinson.
There is no hard match required, aside from some staff time.
M /S /P: McGraw, Retterath to approve applying for the Microenterprise Assistance Grant to
establish a SBDC sub - center here in Hutchinson. Passed Unanimously.
IX. Sale of Land to Warrior Mfg.
Staff reported that Warrior Manufacturing has expressed a desire to sell the 10.5 acre north
lot it purchased last winter back to the city and instead purchase the 3.18 acre to the east.
Staff will meet with Warrior to discuss the reasons for wanting to change lots and report back
to the board next month.
X. Midwest Industrial Tool Grinding
MITGI has signed 10 -year lease with HTI for their former training facility with an option to buy.
The company is looking for financial assistance for leasehold improvements and equipment.
Project financing would need to be shared with a partner(s). Once all application materials
are received, a sub - committee of the Finance Team can review them. Special meetings of
the Finance Team and EDA Board can be held if necessary.
XI. Grant & Loan Applications
George Quast — 149 Main Street South $17,370
M /S /P: Haugen, McGraw to approve commercial loan application, subject to all requirements
put in place by the Finance Team.
XII. Other Business - None
XIII. Set Next Meeting — October 27th
XIV. Adjourn
Mr. Ulrich adjourned the meeting at 12:53 PM
Respectfully Submitted,
Eric Browne
EDA Assistant