EDA NEWS AND NOTES

Here is a summary and the latest news on various projects & initiatives the EDA is currently working on. Check back often for project updates!

Old Medical Clinic Redevelopment Site RFP

The City of Hutchinson is soliciting proposals from potential developers for the redevelopment of a 1-acre city-owned parcel in the city’s downtown, one block west of Main Street, which is State Highway 15.

The developer submitting the winning proposal will have the opportunity to purchase the 1-acre commercial lot known as the “Old Medical Center” property for $1.

An appraisal based on the hypothetical condition that the subject property is a bare land lot ready to be built upon (development ready lot) was completed by Galen Goranowski (MN License # 20312287) Certified General Real Property Appraiser, in July 2015 suggesting an appraised value for the lot of $350,000.

Download a copy of the full Request for Proposals here:  Old Medical Clinic Redevelopment Site Request for Proposal

Hutchinson EDA Revamps Industrial Loan Program

In an effort to make the program more attractive and user friendly the Board of Directors of the Hutchinson Economic Development Authority has enacted a number of changes to their industrial revolving loan fund program. Key changes include:

  1. The lending limit has been raised to $500,000.
  2. Loans can be amortized for up to 20 years, with a 10-year balloon. (most equipment loans would still be 5-7 years)
  3. The interest rate has been reduced to Prime minus 1%, fixed at the time of closing.
  4. There is no formal application; the EDA will just get a copy of all materials the applicant provides to the bank.

Because the EDA is a “gap” funder, all projects that the EDA participates in must have a participating bank as the lead lender.

For additional information, contact Hutchinson’s EDA Director, Miles Seppelt, at (320) 234-4223.

Hutchinson EDA Launches Major Workforce Initiative

Hutchinson EDA Allocates up to $300,000 for High School CTE Center; Launches Fundraising Effort

 The Hutchinson Economic Development Authority has announced a major initiative to address the need for skilled workforce in the community.

The EDA Board of Directors voted recently to launch an effort to raise $700,000 to completely re-equip the Career & Technical Education (CTE) area at Hutchinson High School. ISD 423 will set aside $100,000 for the initiative, and the EDA will match dollar-for-dollar all other donations up to $300,000.

“Our local manufacturers need skilled workers.” explained EDA Director Miles Seppelt. To get those workers we need to dispel the old stereotypes of manufacturing. By providing state-of-the-art equipment to train on, students will see what 21st century manufacturing really looks like.”

New equipment will include CNC (computer numerical control) mills and lathes, new welders & welding simulators, equipment for computer aided drafting, engineering, robotics and automation, plus new equipment for the building trades and vehicle mechanics fields.

 “We’re going to have one the most advanced career & technical training facilities in all of Minnesota.” noted EDA President Steve Jansick. “Our goal is to inspire young people to pursue high-paying careers in manufacturing.”

According to the U.S. Bureau of Economic Analysis, the average wage for all manufacturing jobs in the United States in 2012 was over $62,000 annually, with benefits adding even more.

In the upcoming weeks the EDA will be engaging the local manufacturing community for additional support of this effort.

New Job Training Program Launched

DEED Accepting Applications for Job Training Program

New or expanding businesses in Greater Minnesota can apply for grants through the Job Training Incentive Program administered by the Minnesota Department of Employment and Economic Development (DEED).

The program provides grants of up to $100,000 that eligible businesses can use to train workers in new jobs.

Applications will be accepted beginning Oct. 15 and will be awarded on a first-come, first-served basis to businesses that meet eligibility requirements.

A total of $900,000 is available through June 30, 2016. An additional $900,000 will be available July 1, 2016, through June 30, 2017. Businesses will be required to match the grants on a 1-to-1 basis.

Funding will be available to businesses located outside the seven-county Twin Cities metropolitan area or located in the cities of Hanover, Rockford, Northfield and New Prague.
Funds may be used to pay direct training costs, including wages for on-the-job training. Training may be provided in-house, by institutions of higher education, by federal, state or local agencies, by consultants, or by equipment vendors.
Additional eligibility requirements include:
1. Eligible businesses must add at least three new jobs.
2. The new jobs must pay at least equal to the average weekly wage for the county in which the jobs are located.
3. The new jobs must be permanent and provide at least 32 hours of work per week for a minimum of nine months per year.
4. The following types of businesses are not eligible for program funding: public utilities, health clinics or businesses engaged in lobbying, gambling, professional sports, political consulting, leisure and hospitality, and professional services provided by attorneys, accountants, consultants, physicians or health care consultants.

If your company would like to explore this opportunity contact Miles Seppelt, Economic Development Director at (320) 234-4223 or via email at mseppelt@ci.hutchinson.mn.us

 

MOXY Wins $25,000 JumpStart Manufacturing Contest

The Hutchinson Economic Development Authority announced today that Fortiori Design LLC, an early-stage technology company and maker of the MOXY Muscle Oxygen Monitor, has won its $25,000 JumpStart Manufacturing business plan contest.

Fortiori, founded by Mr. Roger Schmitz and Mr. Stuart Giere, has developed an easy-to-use wearable device that measures the amount of oxygen in muscle tissue. This information helps athletes adjust their training so they can maximize their performance.

Ultimately, athletic performance is limited by the capacity of the heart, lungs and muscles. By measuring the amount of oxygen (the “fuel” that all muscles need to operate) in various muscles, the Moxy Monitor helps athletes understand which of those three systems is limiting their performance so they can adjust their training regime accordingly.

“Our team is thrilled with this support from our community through JumpStart Manufacturing. The money and services from the award will help us grow the market for MOXY more quickly. It’s just one more reason why Hutchinson is a great place to build a business.” noted Mr. Schmitz.

The “JumpStart Manufacturing” business plan contest is designed to help an entrepreneur successfully launch a new manufacturing business to be located in the City of Hutchinson. The contest winner receives $20,000 for working capital, a free website & social media campaign, free business cards, letterhead & envelopes, a free 1-year membership to the Hutchinson Chamber of Commerce and extensive business training, coaching and mentoring provided by the Small Business Development Center and the Southwest Initiative Foundation.

Co-sponsoring the contest are the Hutchinson Economic Development Authority, the Hutchinson Chamber of Commerce, the Small Business Development Center, the Southwest Initiative Foundation, Crow River Press and Vivid Image.

More information about MOXY can be found of their website: www.moxymonitor.com

MN Brownfields – KSU/TAB EPA Grant Writing Workshop in Hutchinson

Several attendees tour the Depot Marketplace and Farmers Market

Several attendees tour the Depot Marketplace and Farmers Market


More than 20 redevelopment professionals from the public and private sectors came to the Hutchinson City Center on July 15th for a one day workshop designed to either introduce participants to EPA grants dedicated to Brownfields Cleanup and Redevelopment or to sharpen and refresh the skills of those who’ve completed the grant process in the past.

The highly competitive grant program has a limited budget each year, and only the best applicants are awarded funds. The level of competition is reflected in the overall quality of the entries, nearly all of which earn 90% or more of the possible points during evaluation. Furthermore, the lowest scored successful applications might have earned 95% or more of those points.

We’re grateful to Minnesota Brownfields and the Technical Assistance to Brownfields Program at Kansas State University for their efforts and passion for this work. MN Brownfields and TAB provide comprehensive resources and guidance to communities and not-for-profits in addressing the ubiquitous need to redevelop contaminated properties. The importance of this work is that it allows municipalities to address the ever-changing land use demands of citizens and businesses by: creating opportunities within older neighborhoods; removing blight; and responding to the incompatible uses that can arise as industries become obsolete, businesses fail and housing expectations change.

Local Manufacturer Continues its Upward Trend

Midwest Industrial Tool Grinding, Inc, (M.I.T.G.I.), a Hutchinson, MN based custom tooling manufacturer, has announced that their Spring 2015 catalog will offer approximately 4,200 tools, up from approximately 600 last year.

For the full article by Terry Davis in the May 13th Hutchinson Leader, please click here:

http://www.crowrivermedia.com/hutchinsonleader/news/business/local-company-growing-its-product-offering/article_4210ba35-9695-5abd-ad18-8eef1d5543f2.html

To learn more about M.I.T.G.I., visit their website:

http://www.mitgi.us/index.php

Staff

Hutchinson Launches $25,000 Business Plan Contest

Hutchinson, Minnesota’s Manufacturing City, has launched a $25,000 business plan contest.

Called “JumpStart Manufacturing,” the contest is designed to help an entrepreneur successfully launch a new manufacturing business to be located in the City of Hutchinson. The contest winner will receive $20,000 for working capital, a free website & social media campaign, free business cards, letterhead & envelopes, a free 1-year membership to the Hutchinson Chamber of Commerce and extensive business training, coaching and mentoring provided by the Small Business Development Center and the Southwest Initiative Foundation.

“We’re providing pretty much everything a new business needs to get started and be successful.” noted Miles Seppelt, Hutchinson’s Economic Development Director.

Sponsors of the contest include the Hutchinson Economic Development Authority, Vivid Image, Crow River Media, the Hutchinson Area Chamber of Commerce, the Small Business Development Center and the Southwest Initiative Foundation.

JumpStart Manufacturing is designed to help someone who has a great idea for a business – in this case manufacturing – turn that concept into reality.

Detailed information, along with application materials, can be found on the contest website: www.jumpstarthutchinson.com

Contest entries are due by 4 PM, Thursday, July 2, 2015 at the Hutchinson City Center, located at 111 Hassan Street SE, Hutchinson, MN 55350.

EDA Ramps Up Marketing Program

The Hutchinson EDA is putting renewed emphasis on marketing and promotion of the community for economic development.  A page-by-page review of the EDA’s primary website, www.hutchinsoneda.com, is currently underway.  All data and information is being reviewed and updated where appropriate, and the look of the site is being enhanced with the addition of more color on many of the pages.  In addition, all parts of the site are being given a consistent look, emphasizing the “Minnesota’s Manufacturing City” logo and brand.  Finally, the EDA’s Facebook page has been reactivated and regular updates are being made.  Said EDA Director Miles Seppelt, “We have all the resources companies are looking for right here in Hutchinson, now we have to ramp up our marketing program and tell the world.” 

Manufacturers’ Week Tours

A partnership among the Hutchinson EDA, the Hutchinson Chamber of Commerce, and the Customized Training Program provided opportunities for parents and students to tour seven local manufacturers on October 15th as part of Minnesota Manufacturing Week. Here are the thoughts of one magazine (Minnesota Manufacturing) blogger.