04-27-2016 EDAMMembers present in bold.
EDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, April 27, 2016
MEETING MINUTES
Members
Mike Cannon Corey Stearns
Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Andy Reid, Finance Director
Matt Jaunich, City Administrator
Daron Vanderheiden Chad Czmowski
Jonny Block
I. Call to Order — The meeting was called to order at 11:32 AM.
II. Approve Agenda — no action
III. Review Minutes
a. March 23rd, 2016 Finance Team Meeting
M/S/P: Czmowski, Cannon to approve the Finance Team minutes as presented; passed unanimously.
b. March 30th, 2016 EDA Board Meeting
M/S/P: Christensen, Stearns to approve the EDA Board minutes as presented; passed unanimously.
IV. Review February EDA Financial Statements — Andy Reid
■ Cash available in operations is $135,591.
■ $56,736 is reserved (proceeds from Warrior land sale) and $76,822 is unreserved.
■ $5,000 has been reimbursed to the EDA Operations budget from Development District #4 (SHOPKO
redevelopment), for the earnest money needed for the purchase of the Old Medical Clinic.
■ The Economic Development Loan fund has $429,183 cash available and one loan receivable, Redline Systems,
with a balance of $33,878. This will be broken out into two separate loans in next month's financials.
■ Downtown revolving loan fund has $338,492 in cash available; loans receivable totaling $606,742 and $201,329
in capital assets (Cenex & Wright properties). $30,000 is reserved for the EDA contribution to the Signage &
Wayfinding project.
■ MIF Loan fund has $931,593 in cash available and one loan receivable in the amount of $154,178 from
NuCrane.
■ $300,000 is reserved for the CTE Equipment Purchase initiative.
■ Unreserved fund balance is $785,772.
■ Two new pages have been added to the monthly financial report.
■ TIF 4-5 (SHOPKO Redevelopment)
o Cash available is $187,181
o Interfund loan receivable is $28,382
■ TIF 4-16 (Old Medical Clinic)
o Interfund loan payable of $228,382 (to be paid by future tax increment revenue generated once
redevelopment occurs on the project site)
M/S/P: Vanderheiden, Stearns to approve the financial report as presented; passed unanimously.
V. Director's Report
■ Marketing Plan: Facebook updates = 17; Twitter updates = 17; Website updates = 2
■ We currently have 143 Facebook followers and 40 Twitter followers.
■ Business recruitment / expansion update: Staff provided an update on recent prospects and ongoing
conversations.
■ Hotel Project update — Project is looking like it will launch in October/ November of this year.
o Developer has significant concerns about the costs involved for a long frontage road, retaining walls and
environmental clean-up.
o There have been some discussions internally at the City about what steps could be taken to make the site
more "shovel -ready" for development
■ Downtown Sign Project Update
o Signs — including one for the Depot Marketplace — are currently being designed
o We should start seeing signs going up by mid -summer
■ Workforce Development Plan update
o Eleven local companies had agreed to contribute to the CTE equipment fund
o A grant proposal to 3M will be submitted in June.
o SWIF has also expressed a strong interest in supporting the initiative.
o Staff has two additional fundraising visits set up for later this week.
■ MCSW: We're still seeing significant trash in our industrial park — discussion followed.
■ 2015 Annual Report — staff is continuing to work on this as time allows...
VI. Old Medical Clinic
■ Final demolition is scheduled for either May 4th or May 5th (depends on the weather)
■ Next step is to develop and distribute a Request for Proposals for redevelopment of the site.
■ Staff proposed the following parameters for the RFP:
1. RFP distributed 5/1
2. Proposals due 7/1
3. EDA selects winning proposal by 7/8
4. Project begins by 7/1/17
5. Development complete by 12/31/18
6. EDA will
a. Demo existing building
b. Complete soil corrections
c. Re -locate existing sanitary sewer line
d. Sell for $1
7. Developer acquires 1 -acre "shovel -ready" lot in downtown Hutchinson appraised at $300-$350K
■ Discussion followed, EDA Board felt the proposed parameters were appropriate.
VII. Hutchinson Enterprise Center
a. Project Update
■ Staff is currently working through the various State of Minnesota requirements
■ Architects are indicating that a July ground -breaking could be achievable
b. Consider resolution requesting City Council to schedule a public hearing for the establishment of TIF District
4-17 (for the incubator)
■ Staff noted that by establishing an economic development TIF District the EDA could capture property
tax revenue generated by the `for profit' businesses in the Enterprise Center and that revenue could
help pay for the parking lot, etc.
M/S/P: Cannon, Stearns to adopt EDA Resolution 2016-3 — Requesting that the Hutchinson City Council call
for a public hearing for the establishment of TIF District 4-17, an economic development district. Passed
unanimously.
c. Discuss idea of consulting agreement with NWRPC
■ The idea of obtaining a consulting agreement with the Northwest Regional Planning Commission in
Norwest Wisconsin was discussed.
■ Since the NWPRC operates a network of 10 small business incubators and have a track record of
success, it may be beneficial to learn as much as possible about their business model and have access
to their staff's knowledge and experience. Estimated cost would be $2,400 to $2,500.
■ Discussion followed. It was noted that we could enter into this agreement once we have bids back on
the building, so we insure this fits into the project budget.
■ Staff noted that at present we are still waiting for a final proposal from NWRPC.
VIII. Minnesota Business Climate Magazine Marketing Initiative
Moving ahead with Year 2 of the EDA's planned 3 -year marketing initiative was discussed.
Staff provided the following update:
✓ Magazine & website were launched 6 months ago
✓ Print run of 10,000 for magazine, which DEED uses for
o Conferences
o Trade Shows
o Relocation / recruitment packets
✓ 92,000 visits to on-line magazine
0 168 countries have visited
✓ Now averaging 10,000 unique visitors / month
Discussion followed
M/S/P: Czmowski, Christensen to authorize the year 2 advertisement at a cost of $5,575. Passed unanimously.
IX. Grant & Loan Program Applications
X. Other Business — Daron Vanderheiden provided an update on the planned High School renovations.
■ Demolition for Phase I on the project will take place this fall.
■ The `400 wing' (where is the CTE Center is located) has been enlarged, partially in response to the Skilled
Workforce Development initiative the EDA is working on.
■ The entire project should be done by September 2018.
XI. Set Next Meeting — 11:30 AM Wednesday, May 25th, 2016.
XII. Adjourn
M/S/P: Stearns, Czmowski to adjourn the meeting at 1:00 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director