12-28-2016 EDAMMembers present in bold.
EDA Board Meeting
Main Conference Room — City Center
11:30 AM Monday, December 28th, 2016
MEETING MINUTES
Members
Mike Cannon Corey Stearns
Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Matt Jaunich, City Administrator
Andy Reid, Finance Director
Jeff Page, EDA Program Assistant
Daron Vanderheiden Chad Czmowski
Jonny Block
I. Call to Order — EDA Vice -President Jonny Block called the meeting to order at 11:33 AM.
II. Approve Agenda - no action.
III. Review Minutes
A. November 16th Finance Team Meeting
M/S/P: Cannon, Stearns to approve the minutes as written. Passed unanimously.
B. November 21St EDA Board Meeting
M/S/P: Block, Christensen to approve the minutes as written. Passed unanimously.
IV. Review of November EDA Financial Statements
Operations
Cash Available
$97,825
Reserved
$56,736
Unreserved
$40,549
Economic Development Loan Fund
Cash Available
$435,407
Loan 1 Balance
$15,417
Loan 2 Balance
$15,417
Downtown Revolving Loan Fund
Cash Available
$338,004
Loans Receivable
$582,751
Capital Assets
$201,329
Total Assets
$1,105,905
MIF Loan Fund
Cash Available
$181,248
Loan Receivable
$116,305
Enterprise Center Fund
Cash Available
$708,770
Expenditures (architect)
$7,554
SHOPKO TIF District (TIF 4-5)
Cash Available
$180,937
Interfund Loan Receivable
$282,648
Expenditures (MPCA)
$1,875
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable
$282,648
M/S/P: Stearns, Czmowski to approve the financial report. Passed unanimously.
V. Director's Report
A. Marketing Plan Report: Facebook updates = 18, Twitter activity = 18, Website updates = 1
B. Social media effort has 151 likes on Facebook and 61 followers on Twitter.
C. Business recruitment/ expansions: Staff provided an update on recent prospects and ongoing
conversations.
D. Old Medical Clinic Redevelopment — site visit by developer needs to be rescheduled.
E. Hutchinson Enterprise Center
■ Construction contract signed with builder.
■ Staff is researching the use of a geo-grid material to help reduce excavation costs.
F. Hotel Project
■ DEED elected not to fund the $249,225 Contamination Clean-up Grant application.
■ They indicated that the project was simply "below average" and not one that would typically be
funded.
■ Staff will get further feedback from DEED next week to see if it would be worthwhile to reapply
for funding in the next grant round, which would be May.
■ Also, staff will try to meet with the developer in person next week to consider next steps.
G. Meeting with HTI Senior Leadership
■ Staff met with Steve Misuta, Dale Ruzicka & Mark Jelkin.
■ Good meeting — prospects at HTI look promising.
H. Meeting with legislative contingent
■ Lobbied for funding for the Minnesota Investment Fund and Job Creation Fund programs.
VI. Workforce Development Plan
■ The possibility of inviting automotive repair shops, auto parts stores, auto dealers, etc. to partner
in the Skilled Workforce Development initiative was discussed.
Marketing efforts
o Daron Vanderheiden, Mike Boehme and Miles Seppelt met with Doug Hanneman and
Brent Schacherer of the Hutchinson Leader to provide a comprehensive briefing of the
plan.
o Enterprise Minnesota will discuss Hutchinson in a story being prepared for the February
edition of the magazine.
o Information has been provided to Precision Manufacturing & Minnesota Business
magazines.
o Jackie Anderson (a former Hutchinson EDA intern) is now the Economic Development
Officer for Congressman Colin Peterson. She will be working to get the Congressman to
Hutchinson sometime in the fall of 2017.
■ FESTO Didatic — a German company that is a world -leading provider of equipment and solutions
for technical education might be interested in partnering in Hutchinson's Skilled Workforce
Development initiative. Staff will be meeting with them in January at the 3M headquarters in St.
Paul to discuss the possibilities.
■ Partner's Summit has been scheduled for Monday, February 6th at Zella's.
Discussion followed.
VII. Request for Loan Subordination
Marc & Michelle Max desire to increase their mortgage with Citizens Bank & Trust from the original
amount of $120,000 to $162,150 to cover additional costs for their building remodeling project.
The EDA has a second mortgage in the amount of $30,000 and would need to subordinate to allow for
the increased first mortgage.
With the increased mortgage amount the overall debt against the property still falls within the
parameters of the Downtown Commercial Rehabilitation Loan Program.
M/S/P: Czmowski, Stearns to recommend approval of the subordination request. Cannon abstained.
Passed unanimously.
VIII. Goals & Objectives for 2017
Staff reviewed a proposed list of EDA goals and objectives for 2017. Discussion followed.
IX. Grant & Loan Program Applications — None.
X. Other Business
A. An on-line questionnaire will be sent out to members of the EDA Finance Team and EDA Board
of Directors to provide feedback on staff for the 2016 performance review.
B. Election of EDA officers will be next month.
XI. Set Next Meeting — 11:30 AM Wednesday, January 25th, 2016.
XII. Adjourn
With no further business to attend to, the meeting adjourned at 12:44 PM.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director