09-24-2014 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, September 24th, 2014
Members present in bold.
MEETING MINUTES
Members
Tim Ulrich Steve Jansick
Mary Christensen Mike McGraw
Staff
Lee Miller, EDA Director
Andy Reid, City Controller
Jeffrey Page, EDA Assistant
Daron Vanderheiden Chad Czmowski
Jonny Block
I. Call to Order - Ulrich called the meeting to order at 11:32 AM.
II. Approve Agenda — No Action
III. Review Minutes of August Finance Team Meeting
M/S/P: Ulrich, Czmowski to approve the August Finance Team Minutes; passed unanimously.
IV. Review Minutes of the August EDA Board Meeting
M/S/P: Jansick, Christensen to approve the August EDA Board Meeting Minutes; passed
unanimously.
V. Review August EDA Financial Statements — Andy Reid
■ Cash available in operations is $158,354.
■ $56,736 is reserved (proceeds from Warrior land sale) and $101,383 is unreserved.
■ The Economic Development Loan fund has $505,142 in cash available.
■ $100,000 is reserved (Luce Line Trail contribution). $405,142 is unreserved.
■ Loan repayments for the month were $680.
■ Downtown revolving loan fund has $187,259 in cash available; $186,399 is unreserved;
loans receivable total $751,980 and $201,329 in capital assets (Cenex & Wright
properties).
■ Loan repayments totaled $9,528 for the month.
■ MIF Loan fund has $938,095 in cash available and loans receivable of $320,947
($249,563 NuCrane and $71,384 Customer Elation).
■ A one-time cash transfer of $581,868 from the Economic Development Loan fund to the
Minnesota Investment Loan fund was made in August to properly account for the
Customer Elation and Warrior loans as MIF loans. This transfer was made to remain in
accordance with federal administrative requirements. Year-to-date revenue and interest
earnings were adjusted accordingly between the two funds.
M/S/P: Block, McGraw to approve the August financials as presented; passed unanimously.
VI. Director's Report
A. Depot Marketplace Redevelopment: Staff updated the Board on overall success of
Farmers Market on Arts & Crafts Festival weekend. Staff gave the Board an overview of
the ReScape Award, awarded by Minnesota Brownfields to projects that distinguish
themselves "by providing community, economic, and/or environmental benefits" (from MN
Brownfields Category Description). Staff submitted the Depot Marketplace project for the
award under the Small City Impact Category.
B. Small Cities Development Program: Staff informed the Board that many of the
properties in the targeted area lie within the 100 year flood plain. The increased costs
and lengthened timeline of continuing efforts in this area may be too great for the
benefits. Staff will explore the feasibility of redirecting efforts toward the Highway 7
commercial corridor.
C. MN Manufacturing Week: Staff informed the Board of the partnership with the
Hutchinson Chamber of Commerce, and the Customized Training Program to provide the
opportunity for parents and students to tour local industries on October 15th as part of
Minnesota Manufacturing Week. Seven companies are participating
D. Cenex site monitoring wells: Staff informed the Board that a property owner adjacent to
the Cenex site inquired with the City about capping the monitoring well located on his
property. Staff informed the Board that there are a total of five wells, that the cost of
capping them is $500 each, and that there is a 70% grant from the Water Department,
and that no work may begin without the MPCA's authorization, which is forthcoming. Bids
will be available for a future meeting.
E. Hutchinson Area Community Foundation: The Hutchinson Area Community
Foundation has published the FY2014 Grant Application. It is an opportunity to pursue a
grant to fund the majority of costs of erecting the permanent Depot Marketplace sign.
M/S/P: Block, Chistensen for staff to develop project scope to solicit bids and submit application
for the grant; passed unanimously.
F. Update on business prospects: Staff is continuing discussions with several prospective
companies regarding space and financing needs.
VII. Grant and Loan Applications
Downtown Commercial Rehabilitation
Shad Ketcher
$65,000
M/S/P: McGraw, Block to approve the loan request of $65,000 at 1.25% for 10 years, provided
applicant complies with program guidelines; passed unanimously; Ulrich abstained.
Storefront Matching Grant
Shad Ketcher
$5,000
M/S/P: McGraw, Czmowski to approve the application for $5,000, provided applicant complies
with program guidelines; passed unanimously; Ulrich abstained.
Jason Werowinski
$4,685
M/S/P: Jansick, Blocki to approve the application for $4,685, provided applicant complies with
program guidelines; passed unanimously.
Sign & Awning Grant
Shad Ketcher/New Era Financial $2,000
M/S/P: Czmowski, Christensen to approve the application for $2,000, provided applicant complies
with program guidelines; passed unanimously; Ulrich abstained.
Skip Quade/Main St. Antiques $2,000
M/S/P: Block, Jansick to approve the application for $2,000, provided applicant complies with
program guidelines; passed unanimously.
Center for the Arts
$2,000
M/S/P: Christensen, McGraw to approve the application for $2,000, provided applicant complies
with program guidelines; passed unanimously.
VIII. Other Business
A. Revolving Loan Fund Program Restructuring: A discussion took place on temporarily
suspending the Downtown Loan and Grant programs due to dwindling assets. A
subcommittee will bring forward recommendations at the October meeting on program
changes aimed at maximizing the remaining program funds.
M/S/P: Block, Ulrich to temporarily suspend the Sign & Awning Grant, Storefront Revitalization
Matching Grant, and Commercial Rehabilitation Loan programs effective October 1St until revised
program guidelines are approved by the EDA Board; passed unanimously.
B. Local business recognition: In August, M.I.T.G.I was a finalist in two of ten categories
for the Minnesota Business 2014 Manufacturing Awards. On September 23rd, MITGI won
gold in the Image Award category and silver in the Best in Class: Small Company
category.
IX. Set Next Meeting — 11:30 AM Wednesday October 22nd, 2014.
X. Adjourn - With no further business to attend to, the meeting was adjourned at 12:43 PM.
Respectfully Submitted,
Jeffrey Page
EDA Assistant