09-07-2016 EDAM Special MeetingMembers present in bold.
EDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, September 7, 2016
MEETING MINUTES
Members
Mike Cannon Corey Stearns
Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Matt Jaunich, City Administrator
Jeffrey Page, Program Assistant
Andy Reid, Finance Director
Daron Vanderheiden Chad Czmowski
Jonny Block
I. Call to Order — The meeting was called to order at 11:39 AM.
II. Approve Agenda — no action
III. Tenant Companies
Staff provided an update on recruitment efforts for the Hutchinson Enterprise Center:
■ Non-binding letters of intent from two companies have been signed.
■ Company "A" is a local company that will take 4,000 sf
■ Company "B" is a small area medical device company that will take 8,000 sf
IV. Project Update
a. Soils conditions
■ Between three and six feet of soils will have to be corrected on the site, depending on where one
looks.
■ In their Geotechnical Evaluation, Braun Intertec noted that less soil correction needs to occur under
the parking lots, so this could be an area of cost savings.
■ Staff noted that the needed soils corrections will probably consume most of the $161,470 budgeted
for contingencies.
b. SB2030 Requirements
■ Consultants (the Weidt Group) have completed the process of designing the building for maximum
possible energy efficiency.
■ It turns out that the SB2030 energy standard (40 kBtu/sf/yr) is impossible to meet, simply because
the incubator building is very simple in design and has just a few systems available where energy
can be saved. The Weidt Group is recommending a "selected design bundle" that will allow the
building to achieve an energy standard of 56 kBtu/sf/yr.
■ The Weidt Group is applying to the State for a waiver from the SB2030 standard on that basis.
■ The selected design bundle will result in an incremental construction cost of $84,407 and will result
in an annual energy savings of $6,304.
■ $175,000 was budgeted for achieving the SB2030 requirements, so we'll probably have significant
budget savings in this area.
c. Project Schedule
Staff summarized the project schedule as it currently stood. Key dates:
u
September 13th
September
September / October
October 11 th
November 15t
April 30th, 2017
May 12th, 2017
Seek City Council approval to advertise for bids
Complete site plan approval process
Preliminary site grading completed
City Council awards winning bid
Construction begins
Construction completed.
Project complete & closed out with DEED.
d. Proposed Building Alternates
To provide maximum budget flexibility, the base project will be a very basic building, with no offices, a
bituminous track maneuvering lot and two loading docks, with two additional docks roughed in. Strictly no
frills.
We would then be able to add alternates as the budget allows
Alternate 1 Add 2,000 sf of offices
Alternate 2 Add concrete truck maneuvering lot (instead of bituminous)
Alternate 3 Add two windows to each tenant space and 8' finished wall on the west side of the
building.
Alternate 4 Add open face concrete block wainscot to the outside of the building
Alternate 5 Complete all four loading docks.
Alternate 6 Add 8' metal liner to tenant bays to protect the walls
e. NWRPC Update
Staff has written the Northwest Regional Planning Commission about our concerns with the proposed
Incubator Development Agreement. There has been no communication from NWRPC.
Project Financial Reporting
Discussion on how the budget for the project will be administered, payment of project -related bills, etc.
a. Authorize establishment of the Hutchinson Enterprise Center Construction Fund
M/S/P: Cannon, Block to authorize establishment of the Hutchinson Enterprise Center project construction
fund. Approved unanimously.
b. Authorize transfers of funds into the new fund
M/S/P: Block, Vanderheiden to authorize funds transfers into the new fund per staff memorandum (see
below). Approved unanimously.
FROM
Minnesota Investment Loan Fund
AMOUNT
$265,000
NOTES
From Warrior & Customer Elation loan repayments (De -
federalized MIF dollars)
Minnesota Investment Loan Fund
$228,000
From NuCrane loan repayments (Federalized MIF dollars)
Minnesota Investment Loan Fund
(receivable)
$132,000
From future NuCrane loan repayments (Federalized MIF
dollars) Note: This would presumably show as a
receivable)
TIF 4-5 (SHOPKO)
$137,500
Interfund Loan
Community Improvement Fund
$250,000
City contribution
Capital Projects Grant
$763,750
DEED Grant (receivable?)
TOTAL
$1,776,250
VI. Appoint Project Team
Staff suggested that it might be good to officially appoint the team to oversee the project on a day -to day basis.
The proposed project team members would be: Mike McGraw, Corey Stearns, Chad Czmowski, Anthony Hanson,
Josh Gehlen, Matt Jaunich and Duane Hoversten.
M/S/P: Czmowski, Christensen to appoint the listed individuals to the Hutchinson Enterprise Center Project Team.
Passed unanimously.
VII. Site Grading Project
Staff briefly summarized the planned project to complete preliminary site grading.
■ Goal is to save time on completing the project by getting preliminary site work done while the City is
soliciting bids for the project.
■ Staff will circulate a Request for Quotes to area excavators as soon as possible.
It was noted that there is a small amount of risk involved in doing the site grading as a separate project. In the
unlikely event that bids come in way high and there is no project, we will have done the site grading for nothing.
In view of the significant time pressure we're under the complete the project, it was agreed that the level of risk was
acceptable.
VIII. Authorize Payment of Project Expenses
a. ZRT Architects (Architectural & Engineering Services) $22,698
b. ZRT Architects (Pre -Design) $5,000
M/S/P: Block, Cannon two approve payment of project expenses to date. Approved unanimously.
IX. Other Business — none
X. Adjourn
M/S/P: Vanderheiden, Christensen to adjourn the meeting at 12:16 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director