06-24-2015 EDAM-EDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, June 24th, 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 11:36 AM.
II. Approve Agenda
III. Review Minutes of May 20th, 2015 Finance Team Meeting
M/S/P: Jansick, Block to approve the May Finance Team meeting minutes; passed unanimously
Review Minutes of May 27th EDA Board Meeting
M/S/P: Block, Vanderheiden to approve the May EDA Board meeting minutes; passed
unanimously.
IV. Review May EDA Financial Statements — Andy Reid
• Format of financials has been revised to bring them in line with the most recent accounting
practices. The key change is that interest is shown as income while loan principal is not.
• Cash available in operations is $115,004.
• $56,736 is reserved (proceeds from Warrior land sale) and $57,008 is unreserved.
• The Economic Development Loan fund has $419,761 in cash available.
• There were no payments for the month.
• Downtown revolving loan fund has $174,748 in cash available; $122,309 is unreserved;
loans receivable total $759,752 and $201,329 in capital assets (Cenex & Wright properties).
• Loan repayments totaled $9,617 for the month, of which $1,304 was interest income.
• MIF Loan fund has $1,044,792 in cash available and loans receivable of $220,035
($202,228 NuCrane and $17,807 Customer Elation).
M/S/P: Vanderheiden, Christensen to approve the May financials as presented; passed
unanimously.
V. Director's Report
A. BR & E Visits: Visits were made to Curtiss-Wright NDT and Lynn Card Company.
B. Marketing Plan Report; Director presented marketing metrics from social media efforts.
C. JumpStart Manufacturing Update: Director reported that no further applications had been
received.
D. Hutchinson Way -Finding & Signage Plan: Director updated the Board on the progress of
the Plan.
E. McLeod County Solid Waste & Energy Park: The Director updated the Board the results
of the Planning Commission meeting. Jansick presented a proposal from Mr. Nies
regarding a future meeting at the recycling facility and of potential future plans at the site.
After consideration, the Board suggested to staff that the September meeting be held at
the McLeod County Single Sort Facility in the Energy Park.
F. The Director reported on his conversations with DEED about using the $763K Business
Incubator Grant to fund the "Talent" / Workforce Incubator at the High School.
G. 7,000 sq ft office space: Interest as cooled for now.
H. Annual Manufacturer's Dinner: Monday October 26tH was the Boards' general preference
for the event.
I. The Joint EDA Board / City Council meeting will be Wednesday, July 8th in the Council
Chambers, at 11:30 am. Lunch will be provided.
J. The Director updated the Board on the progress toward permanent signage at the Depot
Marketplace. Staff will present options at a future meeting.
VI. Appointment of Scott Zieglar to EDA Finance Team:
M/S/P: Block, Stearns to appoint Mr. Zieglar to the EDA Finance Team; passed unanimously.
VII. FORMSTACK Presentation: The Director presented current versions of the online applications
to the Board.
VIII. Marketing Initiative Proposal: The Director presented to the Board an opportunity to promote
Hutchinson in the MN Economic Development magazine that will be distributed directly to site
selectors and by DEED at events across the country. The cost of the full page advertisement
is $5,575 each year for three years. The EDA will have the opportunity to review the ad on an
annual basis.
M/S/P: Block, Stearns to approve the advertisement as presented by the Director; passed
unanimously.
IX. Fagade Improvement Program / Storefront Revitalization Matching Grant
MSP: Block, Stearns to apply the changes to the program language as recommended by staff and
as further discussed; passed unanimously.
X. Propsed EDA Budget: Staff and the Board discussed the Draft 2016 Budget.
M/S/P: Block, Stearns to approve the 2016 Draft Budget as presented by the Director; passed
unanimously.
XI. Downtown Redevelopment
A. The Director recommended the adoption of Resolution requesting City Council Action on
TIF District Modification. It would go before the Council on September 8tH
MSP: Czmowski, Block to adopt a Resolution requesting City Council Action on TIF District
Modification; passed unanimously.
B. The Director updated the Board on the progress toward acquiring the old medical clinic
site.
C. The Director requested authorization to use $1,000 to obtain a property appraisal as
previously discussed.
MSP: Christensen, Stearns to proceed with the appraisal process; passed unanimously.
XII. Grant and Loan Applications
Sign & Awning Grant Program
35 3rAve. SE — Mark & Heather Landreville (Landy Lodge) $1,000
MSP: Block, Stearns to approve the application contingent upon its meeting program guidelines;
passed unanimously.
1062 nd Ave SW (Crow River Title) — Rod Manderscheid $1,000
MSP: Block, Vanderheiden to approve the application contingent upon its meeting program
guidelines; passed unanimously.
Commercial Rehabilitation Loan Program
BARTCO Properties, Steve Barton, 24 Main Street S. $22,000
10yr @ 3.25%
The lower of two bids for $19,939 was approved at the May 27 meeting. Language in the
program application doesn't automatically require approval of lower bid as it does in the two
grant programs. Staff inquired whether the approved amount should be increased to $22,000
to match applicant's request. After discussion, it was determined that the Board has typically
approved the lower amount in these situations and revisited the application if necessary. No
action was taken.
XIII. Other Business: The Director suggested the relationship with Jeff Jensen for Pro Bono ag
land maintenance be formalized.
MSP: Czmowski, Vanderheiden to formalize the existing relationship with Jeff Jensen for the
maintenance of ag land in the industrial park; passed unanimously; Block abstained.
XIV. Set Next Meeting — 11:30 AM Wednesday, August 26th, 2015.
XV. Adjourn - With no further business to attend to, the meeting was adjourned at 1:10 PM.
Respectfully Submitted,
Jeffrey Page
EDA Program Assistant