09-26-2012 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, September 26, 2012
Members present in bold.
MEETING MINUTES
NAemhers
Tim Ulrich Steve Jansick Daron Vanderheiden Chad Czmowski
Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Aaron Othoudt, EDA Assistant
Andy Reid, City Controller
Guest
Scott Marquardt, MNAN
Call to order
EDA President Tim Ulrich called the meeting to order at 11:35 AM
II. Approve Agenda — No Action
Ill. Review meeting minutes:
August 22nd, 2012 Board of Directors
M/S/P: Czmowski, McGraw to approve the Board minutes as written; passed unanimously
August 15th, 2012 Finance Team
M/S/P: Ulrich, Jansick to approve the Finance Team minutes as written; passed
unanimously.
Iv. Review August EDA Financial Statements — Andy Reid
• Cash available in operations is $123,730.
• $56,736 is reserved (proceeds from Warrior land sale) and $61,894 is unreserved.
• Note: Professional services — Majority of this month's $2,044 expenditure went to Moxie
Media for the Discover Hutchinson brochures.
• The Economic Development Loan fund has $577,223 in cash available.
• Loan payments for the month were $9,759.
• Downtown revolving loan fund has $188,964 in cash available, loans totaling $819,048
and $201,329 in capital assets (Cenex & Wright property).
• Loan repayments totaled $8,548 for the month.
• Note: Professional services — This month's $3,510 expenditure went to pay half of the
Downtown Action Plan to date.
• MIF Loan fund has $153,018 in cash available and loans receivable of $372,376
(NuCrane).
• Loan payments for the month were $5,640.
M/S/P: McGraw, Czmowski to approve the August financials as presented; passed
unanimously.
V. Director's Report
A. Federal Grant Status (Industrial Park): — Federal EDA staff released a final payment of
$220,419 and the grant is now closed out. The total grant amount was reduced by about
$18,000 because some Industrial Park project expenses were con considered
reimbursable by the Federal EDA.
B. NuCrane Mfg. MIF Grant — DEED Staff has closed out the grant from the state. The
process to de -federalize those dollars will begin immediately.
C. BR&E Visit: MITGI (33 emp; 20k sf) — Company is doing well and the facility they lease
from HTI is a huge improvement from the 2k sf building they occupied in Stewart.
D. Marketing Plan Update — Staff will present an updated report each month. Goal is to
have all brochures & postcards mailed out by Christmas.
a. Brochures 316/1130
b. Postcards 240/1000
Vi. MNAN Update — Scott Marquardt — Scott updated the EDA Board with what is happening
around the Minnesota Angel Network (MNAN). Scott also discussed how Hutchinson will be
able to benefit from the MNAN.
Vu. Depot Marketplace Redevelopment — Staff met with the environmental consultant, officials
from the MPCA, and DEED representatives on Thursday and was able to get the remediation
figure knocked down to under $500,000. At this meeting it was brought to light that there is a
chance to receive a grant for 75% of the remediation costs.
Discussion followed. Staff is to research other funding and put together an estimate for
remediation with the City Engineer.
Vui. Downtown Business Plan Contest
Discussion of the proposed initiative.
Staff will begin drafting the rules and an application for the Downtown Business Plan Contest.
ix. Spec — Incubator Building Project
Staff had a phone conversation with Dick Mclure. Mr. Mclure was dissatisfied that the spec —
incubator will become a competition. Staff reassured him that this is not the case and
explained the project to Mr. Mclure in which made him happy and the issue was resolved.
Discussion followed. The EDA Board would like staff to email the project outlines to both the
Finance Team and the EDA Board to further think about the project over the next month.
Next month the EDA Board would like to discuss in further details.
x. Discussion of Downtown Business Plan Contest — Staff presented a first draft of the
Downtown Business Plan Contest for review. Discussion followed. More discussion will
take place in coming months. Staff was asked to meet with other potential partners to see
what they could potentially contribute to the downtown business plan initiative.
xi. Marketing
Staff presented two ideas to expand the EDA's marketing efforts:
A. "Positively Minnesota" Marketing Group (DEED)
Positively Minnesota works with site selectors and presents to them information on members.
This will give staff more access to DEED and will be able to attend quarterly meetings for
updates from DEED.
M/S/P: McGraw, Christensen to approve membership to "Positively Minnesota"; passed
unanimously
B. Sign in Industrial Park — maybe $250 +/-
Utilize the existing Federal EDA sign by having a new sign added for the purpose of
marketing the industrial park. 5th Avenue location has very good visibility.
M/S/P: Jansick, McGraw to approve having a new sign added, staff to approve the amount;
passed unanimously
XII. Grant & Loan Applications
Sign & Awning Grant Program
Evolution Tattoos & Piercings
15 Washington Avenue E
$1,495.26
M/S/P: Czmowski, Christensen to approve the grant request; passed unanimously.
XIII. Other Business —
Mach Loan subordination to Prairieland EDC
M/S/P: McGraw, Czmowski to subordinate to Prairieland EDC; Ulrich abstained; passed
unanimously.
Todd Leonard visit (MNAN)
There was some discussion, the EDA Board decided to wait until the year end report and to
have staff bring this up again early 2013.
XIV. Set Next Meeting — October 24th
xv. Adjourn —With no further business to attend to, the meeting was adjourned at 12:53 pm.
Respectfully Submitted,
Aaron Othoudt, EDA Assistant