09-28-2016 EDAMMembers present in bold.
EDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, September 28th, 2016
MEETING MINUTES
Members
Mike Cannon Corey Stearns Daron Vanderheiden Chad Czmowski
Mary Christensen Mike McGraw Jonny Block
Staff
Miles Seppelt, EDA Director
Matt Jaunich, City Administrator
Jeffrey Page, Program Assistant
Call to Order — The meeting was called to order at 11:34 AM.
II. Approve Agenda — no action
III. Review Minutes
a. August 17th Finance Team Meeting
M/S/P: Stearns, Cannon to approve the Finance Team minutes as presented. Passed unanimously.
b. August 24th EDA Board Meeting
M/S/P: Block, Christensen to approve the EDA Board minutes as presented. Passed unanimously.
c. September 7th Special EDA Board Meeting
M/S/P Cannon, Block to approve the special EDA Board meeting minutes as presented. Passed
unanimously.
IV. Review of August EDA Financial Statements — Miles Seppelt, EDA Director
■ Cash available in operations is $145,590.
■ $56,736 is reserved (proceeds from Warrior land sale) and $78,482 is unreserved.
■ Staff noted that $10,000 in "Refunds & Reimbursements" in both Revenues and in Expenses is the SWIF
grant for the high school CTE Center.
■ The Economic Development Loan Fund has $432,794 cash available and two loans receivable, Redline
Systems and Ashwill industries, both having balances of $16,074.
■ Downtown revolving loan fund has $377,717 in cash available.
■ Loans receivable total $556,934 and there was $201,329 in capital assets (Cenex & Wright properties).
$30,000 is reserved for the EDA contribution to the Signage & Wayfinding project along with 30,000 in
pending loans/grants.
■ MIF Loan fund has $662,474 in cash available and one loan receivable in the amount of $127,171 (from
NuCrane).
■ Unreserved fund balance is $789,645.
■ Shopko Development District #4-5 has $213,756 in cash available and an Interfund Loan receivable from
TIF District 4-16 in the amount of $273,300.
■ TIF District 4-16 had an Interfund Loan Payable to Development District 4-5 in the amount of $273,300.
M/S/P: Block, Stearns to approve the financial report as presented; passed unanimously
V. Director's Report
Marketing Plan Report: Website updates = 1, Facebook updates = 21, Twitter activity = 20
Social media effort has 148 followers on Facebook and 55 on Twitter.
Business recruitment / expansions: Staff provided an update on recent prospects and ongoing conversations.
MOXY Update — Staff visited the company recently and received an update on how things are progressing.
Light pole in industrial park — insurance check has been received.
Downtown Signage — most signs are now installed, parking signs yet to go up.
Hotel
■ The Development Agreement and the Purchase Agreement are currently under review by the
Developer.
■ The developer has indicated that they plan to be under construction throughout the winter.
■ The EDA's Redevelopment Grant application to DEED was rejected.
Old Medical Clinic Redevelopment — A Twin Cities developer will visit Hutchinson on October 21St to inspect
the site.
Workforce Development Plan
■ Partners have contributed over $1,200,850 thus far for the project
■ First equipment order will probably be in the spring, with a second order probably in the middle of
next summer. This would be timed so that delivery would be directly to the new CTE Center.
■ Project Team is meeting every two weeks to implement the 3M Grant and coordinate the project.
■ The Tiger Manufacturing production cell will probably be screen printing.
■ There is a very high level of collaboration between Ridgewater College and Hutchinson High School —
"articulation agreements" are being put together whereby students at HHS will be able to earn
significant college credit for their work in high school.
■ We're exploring opportunities for students to earn industry recognized credentials (such as the
Certified Welder certification from the American Welding Society) while still in high school.
■ A comprehensive marketing initiative is being developed aimed at students, parents, teachers, the
general public and regional / industry specific media outlets. This will be rolled out later this fall.
■ Staff inquired as to whether the EDA would be open to sponsoring a "Partner's Summit" event to get
input from the contributors to the CTE project and report on how the initiative is developing
o Consensus was that the EDA would be willing to sponsor the event.
o Staff will research costs and repot back next month.
Hutchinson Enterprise Center
■ DEED has agreed to revise the project completion date to December 1, 2017.
■ The project is currently being advertised for bids — which are due October 10th
■ Prospective tenants have been notified of the revised construction schedule.
VI. Company "X"
Staff provided a detailed report on the business. Discussion of potential local assistance.
VII. Grant & Loan Program Applications
Facade Improvement Program
Ameriprise — Mark Max
134 Main Street South
$2,500
M/S/P: Czmowski, Stearns to approve the grant request. Approved unanimously, Mr. Cannon abstained.
Commercial Rehabilitation Loan
Pawn Shop Building — Kirk Quade
140 Main Street North
$12,500
(10 yrs @ 3.25%)
M/S/P: Block, Christensen to approve the loan, subject to all required documentation being provided and that the
project qualifies under the Commercial Rehabilitation Loan Program rules. Approved unanimously, Mr. Cannon
abstained.
VIII. Other Business
■ Minnesota Economic Development Foundation donation request
Staff reported that the Foundation has awarded Hutchinson three or four grants over the years to help offset
the costs of having an intern, so now they've approached us about the possibility of a donation to support
their work.
Discussion. Consensus was to:
a) Include this item in future EDA Budgets, and;
b) Look at our finances at the end of the year with an eye towards making a donation of some sort,
assuming we finish the year with a positive budget balance.
IX. Set Next Meeting — 11:30 AM Wednesday, October 26th, 2016.
X. Adjourn
M/S/P: Block, Cannon to adjourn the meeting at 1:10 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director