12-23-2015 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, December 23rd, 2015
Members present in bold.
MEETING MINUTES
Members
Steve Jansick Corey Stearns Daron Vanderheiden Chad Czmowski
Mary Christensen Mike McGraw Jonny Block
Staff
Miles Seppelt, EDA Director
Andy Reid, City Controller
Jeffrey Page, EDA Assistant
Matt Jaunich, City Administrator
IV
Call to Order - Jansick called the meeting to order at 11:32 AM.
Approve Agenda
Review Minutes
A. November 18th Finance Team Meeting
M/S/P: Stearns, Block to approve the November Finance Team meeting minutes; passed unanimously.
B. November 25th EDA Board Meeting
M/S/P: Block, Chrstensen to approve the November EDA Board meeting minutes after correction of typo
in item C of the Director's Report; passed unanimously.
Review November EDA Financial Statements — Andy Reid
• Cash available in operations is $110,141.
• $56,736 is reserved (proceeds from Warrior land sale) and $64,079 is unreserved.
• The Economic Development Loan fund has $425,268 in cash available, of which $303 was interest
income in November.
• Downtown revolving loan fund has $183,696 in cash available; loans receivable total $755,727 and
$201,329 in capital assets (Cenex & Wright properties). $30,000 is reserved for the EDA contribtion
to the Signage & Wayfinding project.
• Loan repayments yielded $1,573 in interest income for the month.
• MIF Loan fund has $899,576 in cash available and loans receivable of $175,861 from NuCrane).
Notable Entry: $300,000 is reserved for the EDA match toward the CTE Equipment Purchase
initiative.
• Tax Increment Financing Fund has $356,116 in cash available.
M/S/P: Block, Vanderheiden to approve the November financials as presented; passed unanimously.
V. Director's Report
A. Marketing Plan Report: Website updates = 3, Facebook updates = 13, Twitter activity = 13.
B. Business recruitment / expansions: Staff updated the Team on recent prospects and ongoing
conversations.
C. Staff informed the Board that Mr. Page will continue employment with Hutchinson, but at a
reduced level averaging approximately 12 hours per week during the coming semester at St.
Cloud State University.
D. The Board had no questions or concerns regarding the rescheduled Manufacturers' Summit in
February.
E. Cornerstone Commons has been sold and their Downtown Commercial Rehabilitation loan
($81,028 balance) will be paid off on 12/28.
F. The hotel project is moving forward and a purchase agreement is expected any day.
VI. Workforce Development Plan
A. Staff reported that four businesses have committed to donations toward equipping the CTE. Staff
reviewed manufacturers' expressed primary interests in training during their discussions
regarding these donations.
B. The first internships will begin in March 2016; the Welding Camp will begin in the Summer of
2016; Company tours will be organized and promoted for October 2016 to coincide with
Minnesota Manufacturing Month.
C. Mr. Vanderheiden presented the initial site plans and draft timeline for phased project
implementation and completion.
VII. Recommendations for EDA Board Vacancies
A. Daron Vanderheiden
M/S/P: Block, Stearns to recommend to the mayor the nomination of Daron Vanderheiden for a six year
term on the EDA Board; passed unanimously. Vanderheiden abstained.
B. Open seat. Staff presented Mike Cannon and Josh Gehlen as options for recommendation. The
Board discussed various merits of each.
M/S/P: Block, Czmowski to recommend to the mayor the nomination of Michael Cannon for a six year
term on the EDA Board; passed unanimously.
VIII. Resolution Requesting City Council Call Public Hearing (TIF 4-16)
Staff reviewed the steps necessary to and timeline for establishing a Redevelopment TIF District at the
old medical clinic.
M/S/P: Czmowski, Christensen to adopt the Resolution Requesting the City Council Call a Public
Hearing regarding the establishment of Redevelopment TIF District 4-16 at the old medical clinic site;
passed unanimously.
IX. Update of Hutchinson Business Subsidy Policy
M/S/P: Block, Stearns to adopt program revisions as presented; passed unanimously.
X. Hutchinson Enterprise Center
A. Staff has assembled a plan review team of volunteers which will begin meeting in January.
B. Staff reviewed his visit to the Portage, WI Enterprise Center and outlined the benefits for housing
the EDA offices on site, the primary benefit of which is to provide better customer support for the
tenants.
C. Board members inquired whether the property next to the Charter School would be more
advantageous in terms of public visibility. Staff will explore it as an option.
D. The three Design/Build Firms approached regarding this project estimated that the cost of the
building could run between $750,000 to $1 million.
E. Staff reviewed the Admission Criteria, Features, Goals, and Company Requirements used
successfully by the Portage, WI Enterprise Centers.
F. JumpStart Manufacturing would be one element of the marketing plan that would also include
social media and press releases.
XI. 2016 Goals and Objectives
A. Staff reviewed the Work Plan and Goals as presented.
M/S/P: Block, Czmowski to adopt the plan as presented; passed unanimously.
XII. Grant & Loan Program Applications - None
XIII. Other Business - None
XIV. Set Next Meeting — 11:30 AM Wednesday, January 27th, 2016.
XV. Adjourn - With no further business to attend to, the meeting was adjourned at 1:02 PM.
Respectfully Submitted,
Jeffrey Page
EDA Program Assistant