03-30-2016 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, March 30, 2016
Members present in bold.
MEETING MINUTES
Members
Mike Cannon Corey Stearns Daron Vanderheiden Chad Czmowski
Mary Christensen Mike McGraw Jonny Block
Staff
Miles Seppelt, EDA Director
Andy Reid, Finance Director
Matt Jaunich, City Administrator
Call to Order — The meeting was called to order at 11:34 AM.
II. Approve Agenda - no action
III. Review Minutes
a. February 17th, 2016 Finance Team Meeting
M/S/P: Stearns, Cannon to approve the Finance Team minutes as presented; passed unanimously.
b. February 24th, 2016 EDA Board Meeting
M/S/P: Block, Christensen to approve the EDA Board minutes as presented; passed unanimously.
IV. Review February EDA Financial Statements — Andy Reid
■ Final 2015 financial statements were briefly reviewed. EDA operations budget finished the year $10,168 in the
red.
■ As of the end of February 2016, cash available in operations is $141,852.
■ $56,736 is reserved (proceeds from Warrior land sale) and $96,038 is unreserved.
■ No unusual expenditures in the EDA operations budget.
■ The Economic Development Loan fund has $427,915 cash available and one loan receivable, Redline Systems,
with a balance of $34,712.
■ Downtown revolving loan fund has $328,920 in cash available; loans receivable totaling $615,138 and $201,329
in capital assets (Cenex & Wright properties). $30,000 is reserved for the EDA contribution to the Signage &
Wayfinding project. The Cornerstone Commons loan payoff has boosted the cash position of this fund by
roughly $80,000.
■ MIF Loan fund has $925,656 in cash available and one loan receivable in the amount of $159,553 (from
NuCrane).
■ $300,000 is reserved for the CTE Equipment Purchase initiative.
■ Unreserved fund balance is $786,792.
■ Tax Increment Financing Fund has $197,616 in cash available, with about $225,000 just expended for the
acquisition of the Old Medical Clinic building.
M/S/P: Block, Cannon to approve the financials as presented; passed unanimously.
V. Director's Report
■ Marketing Plan: Facebook updates = 15; Twitter updates = 15
■ Business recruitment / expansion update: Staff provided an update on recent prospects and ongoing
conversations.
■ Hotel Project update — project might be slowing due to site & environmental concerns. Probably looking at a
late summer / early fall start date for construction. Developer is concerned about mounting costs associated
with the site. No purchase agreement signed as yet. Discussion followed.
■ Workforce Development Plan update
o Seven local companies had agreed to contribute to the CTE equipment fund
o One is pending and won't be decided until June
o The planned Welding Camp is all set for June
o Internships with some local companies have been established
■ Hutchinson Enterprise Center update
o Tim Reisenour, ZRT Architects, met with the project team on Monday, March 28t"
o The biggest challenge will be working through Minnesota's SB2030 requirements.
o We're shooting for a July ground breaking.
■ Old Medical Clinic Project Update — next step is abatement of hazardous materials, demolition hopefully by
the end of April.
■ Hay Land rental = $25 / acre ($1,175 total) — Tom Schlueter has rented the land and is paid up.
■ MCSW: Trash in our industrial park — discussion followed.
■ 2015 Annual Report — staff will be working on this and have it ready for next month's meeting.
VI. Finance Team
The appointment of new members to the EDA Finance Team was considered.
M/S/P: Czmowski, Stearns to appoint Jennifer Ortloff, Jack Daggett & Josh Karg to the EDA Finance Team for a 1 -
year term, to March 30, 2017. Passed unanimously.
VII. Project "X" (HTI Building)
Staff briefed the Board of Directors on a company prospect that was looking at the possibility of purchasing the
237,000 square foot HTI manufacturing building.
■ The prospect is a medical device manufacturing company
■ About 100-150 jobs would be moved to Hutchinson.
■ Another 25-50 jobs would be created in the first two years.
■ There is a potential the company would acquire HTI's metal stamping division, which would create another
50 jobs.
■ Longer term there is a potential for 200+ new jobs.
■ The possibility exists that other divisions of the company would locate operations in Hutchinson
■ The company would incur major costs in moving its operations to Hutchinson, along with higher annual
operating costs because the HTI building is significantly bigger than what they currently need. As a result,
public financial assistance would be necessary.
■ Options for public financial assistance were reviewed and discussed.
■ The company will probably make a decision within the next 30 days.
Discussion followed.
VIII. Manufacturer's Summit
Staff provided a final report on the February Manufacturer's Summit. Total costs were just over $1,000 and the goals
of providing manufacturer's with information about resources to assist them, promote networking and conveying the
community's appreciation were all achieved. All reviews of the event have been positive.
Discussion followed.
M/S/P: Stearns, Christensen to host another manufacturer's summit in February 2017. Passed unanimously.
IX. Grant & Loan Program Applications
Sign & Awning Grant Program
Flagship Advisors —16 Washington Avenue, Suite 104 $1,000
Thad Johnson
M/S/P: Czmowski, Block to approve the grant. Passed unanimously.
Economic Development Loan Fund
Ashwill Industries, Inc. —Tony Ashwill $17,356 @ 5% for 68 months
Redline Systems, Inc. — Matt Cheney $17,356 @ 5% for 68 months
M/S/P: Block, Cannon to approve the two loans on the terms presented. Passed unanimously.
X. Other Business
Staff indicated that the process of establishing an economic development TIF District for the Hutchinson Enterprise
Center would be initiated shortly.
XI. Set Next Meeting — 11:30 AM Wednesday, April 27, 2016.
XII. Adjourn — 12:59 PM
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director