01-28-2015 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, January 28th, 2015
Members present in bold.
MEETING MINUTES
Members
Steve Jansick Corey Stearns
Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Andy Reid, City Controller
Jeffrey Page, EDA Assistant
Daron Vanderheiden Chad Czmowski
Jonny Block
Call to Order - Jansick called the meeting to order at 11:33 AM.
II. Approve Agenda — No Action
III. Review Minutes of December 17th Finance Team Meeting
M/S/P: Stearns, Block to approve the December Finance Team meeting minutes; passed
unanimously
Review Minutes of the December 18th EDA Board Meeting
M/S/P: Czmowski, Block to approve the November EDA Board meeting minutes; passed
unanimously.
IV. Review November EDA Financial Statements — Andy Reid
■ Cash available in operations is $186,184.
■ $56,736 is reserved (proceeds from Warrior land sale) and $120,823 is unreserved.
■ The Economic Development Loan fund has $416,821 in cash available.
■ The $100,000 Luce Line Trail Contribution has been transferred to the DNR. The
remaining cash balance is unreserved.
■ There were no loan repayments for the month; Staff will be in contact with Redline
Systems with regards to their first payment of $565.
■ Downtown revolving loan fund has $220,732 in cash available; $142,732 is unreserved;
loans receivable total $722,306 and $201,329 in capital assets (Cenex & Wright
properties).
■ Loan repayments totaled $10,350 for the month.
■ MIF Loan fund has $981,028 in cash available and loans receivable of $281,436
($233,864 NuCrane and $47,572 Customer Elation).
M/S/P: Christensen, Block to approve the November financials as presented; passed unanimously.
V. Director's Report
A. Meetings w / Board members: Miles has met individually with nearly all Team and Board
members since his return.
B. BR & E Visits: Crow River Signs, Hillyard, Redline Systems, Warrior Mfg., Stearnswood,
Vivid Image, SEH Inc.
C. Website Update: Staff will bring both sites up to date and begin routine social media
updates.
D. Depot Marketplace Grant closeout: A DEED representative reviewed the Grant paperwork
for compliance and completion and found everything in order.
E. Hwy 22 / 212 Coalition: Sheldon Nies, Kent Exner, and Miles Seppelt are members of the coalition
exploring opportunities to improve the freight transit corridor connecting Hutchinson to the Metro area.
Christensen and Czmowski informed the board that the City Council passed a resolution of support at
the January 27th meeting. The Board will have the opportunity to pass a resolution in support of the
coalition at the next meeting.
F. Data Centers (DEED): Miles informed the board of the focus on data centers at the recent EDAM
conference and that he would pursue a relationship with DEED to facilitate Data Center recruitment.
G. Minnesota Trade Office visit: Another topic at the EDAM conference was the value of pursuing
international trade relationships and an exploration of the agencies in Minnesota that specialize in
building those partnerships. As a result, Miles has begun to work to strengthen relationships with those
individuals and agencies to grow opportunities for our industries.
H. Guide to Hutchinson Ad: Staff will place the order.
I. Company "X": A multi -state corporation is looking to consolidate operations in one of the states, of
which Minnesota is one, where they already have a presence.
J. Company "Y": The Angel Network generated a lead for a medical device research and development
company with a focus on low temp, low toxicity, sterilization system. Could create local supFly chain
demand for metalwork, electronics, and controller assemblies. We'll learn more February 9t .
VI. 2015 Work Plan and Priorities: The Director presented proposed revisions to the 2015 Work
Plan and Priorities.
M/S/P: Block, Czmowski to approve the revisions as presented; passed unanimously.
VII. Finance Team Membership: There was discussion regarding those individuals who had been
recommended as new members of the Finance Team. There were no objections and the
Board agreed that they be invited as guests to at least one meeting in order that they might
gauge their interest before they would be formally appointed.
VIII. Former CENEX Fertilizer Lot (3rd Ave. NW): There have been inquiries into the price per
acre for some or all of this property. Discussion raised several questions and possibilities that
would need to be addressed prior to a sale.
Mr. Stearns left the room for the length of this discussion.
1. There is a question as to whether and how much the City of Hutchinson contributed
to the project and whether the EDA is obligated to reimburse the City for those
contributions.
2. Development restrictions and requirements must be communicated to the interested
parties prior to entertaining offers.
3. Staff will explore the opportunities for establishing an Economic Development TIF
district.
4. Offers shall be made by sealed bid, with the proviso that the EDA reserves the right
to reject, and that any project is subject to planning approval.
IX. Updates on MIF funds: Miles contacted DEED to confirm the status of the EDA's MIF funds.
There is currently a de -federalized balance of $673,475 and a Federalized balance of
$307,553.
X. Local Contribution for HRA CDBG Grant Application $175,000
DEED is strongly encouraging the EDA to contribute $175,000 to the HRA Small Cities
Development Program (SCDP) grant application as a local match. It will significantly improve
their application by increasing its overall score. The contribution is to come from the
federalized portion of the MIF fund.
XI. Consider addition to Downtown Commercial Rehabilitation Loan Program Rules
Proposed rule addition:
If a Federal Government Lending program is involved with a project, this loan may be
amortized as required by the Federal program at the rate of Prime + 2%, fixed, with a
note maturity of not more than 10 years. Said loans may be refinanced for up to 10
additional years at the then current Prime Rate + 2%, fixed.
M/S/P: Czmowski, Christensen to approve the revisions as presented; passed unanimously.
XII. Grant and Loan Applications
Commercial Rehabilitation Loan Program
LTC Properties / Lamplighter — Mark & Heather Landreville $30,000
35 3rd Avenue SE
M/S/P: Block, Stearns to approve the loan application, subject to the request meeting program
guidelines; passed unanimously.
Sign & Awning Program
Below Zero Frozen Yogurt — Ashley Docken/David Swift $1,000
45 Washington Ave SE
M/S/P: Block, Christensen to approve the program application, subject to the request meeting
program guidelines; passed unanimously.
River of Hope — Laura Aase / Hutchinson Properties $1,000
16 Washington Ave
(tentative — waiting on 2�d bid — Not rec'd by staff prior to meeting)
M/S/P: Czmowski, Christensen to deny the program application, due to its not meeting program
guidelines; passed unanimously.
XIII. Other Business:
A. Artplace Grant Opportunity: The Director and Steve Cook presented to the Board the
opportunity for a one-time grant from ArtPlace. It is awarded to one community in
each of twelve regions that for the purpose of "Creative Placemaking by
strengthening the social, physical, and economic fabric of a community through arts
and culture." Applicants shall not be an arts organization or a governmental agency.
Staff will inquire as whether the EDA will be allowed to apply as a semi -governmental
entity. The first stage is to demonstrate the capacity of the organization to deliver the
project.
B. Potential Revenue (TIF) — The Director presented to the board the opportunity to
leverage substantial recaptured TIF funds for the purpose of redeveloping blighted
properties and/or areas in an existing TIF district. Discussion followed about the
various possibilities and strategies that would have greatest effect.
C. Downtown Lamplighter Project —Some properties near the Lamplighter project
present themselves as possible targets of the TIF funds.
XIV. Set Next Meeting — 11:30 AM Wednesday, February 25th, 2014.
XV. Adjourn - With no further business to attend to, the meeting was adjourned at 1:23 PM.
Respectfully Submitted,
Jeffrey Page
EDA Assistant