Minutes
of the
Regular Meeting of the
Detroit Lakes Development Authority
Wednesday, March 4th
4:30 PM
City Administration Building
Conference Room
MEMBERS PRESENT: Jim Anderson, Greg Hildenbrand, Dennis Winskowski, Mary Beth Gilsdorf
MEMBERS ABSENT: Mark Hagen, Tom Klyve, Bruce Imholte
OTHERS PRESENT: Robert Louiseau, Larry Remmen, Nancy Wichmann, John Schneider, Community Properties LLC
I. CALL TO ORDER:
Chairman Jim Anderson called the meeting of the Detroit Lakes Development Authority to order at 4:30 PM in the Conference Room of the City Administration Building, 1025 Roosevelt Avenue on Wednesday, March 4th, 2009. All members of the Authority have been duly notified of the meeting and the business to be transacted.
II. MINUTES:
A motion was made by Commissioner Mary Beth Gilsdorf seconded by Commissioner Greg Hildenbrand and carried unanimously to approve the minutes of the regular meeting held February 3, 2009
III. FINANCIALS:
A motion was made by Commissioner Mary Beth Gilsdorf, seconded by Commissioner Greg Hildenbrand and carried unanimously to approve the financial report and payment of claims for the period ending December 31, 2008
IV. OLD BUSINESS:
A. None
V. NEW BUSINESS:
A. Consideration to setting an interest rate for a loan to the Becker Lakes IDC for a spec building
Larry Remmen reported that the
Becker Lakes IDC is considering the construction of a 10,000 or 25,000 square
foot spec building. They are requesting a loan from the Development
Authority for approximately $250,000. Larry Remmen recommended using IRP for
funding. A motion was made by Commissioner Dennis Winskowski, seconded by
Commissioner
Greg Hildenbrand and carried unanimously to approve a loan to the Becker Lakes
IDC for up to $250,000 at 4% for five years.
B. Consideration to setting aside IRP funds for façade improvement loans
Discussion was held to set aside IRP
funds in the amount of $250,000 for business façade improvement loans. Matching
loans would be available for up to $20,000 at an interest rate of 4%.
Suggested loan terms of straight 7 year terms or 10 year
amortization with a 5 year balloon would be determined by the Authority. The
loan process could be simplified to a one page
application, with attachments containing source and use of funds; drawings
showing the new façade improvements and a loan approval letter from the bank.
Approval of the loan applicants
could be determined by staff or a small committee of Authority Commissioners.
USDA program funding for energy could be another source for the loan.
Executive Director Bob Louiseau suggested
applying for a Small Cities Grant to target the downtown area with the business
investing an amount in the loan program. Small Cities funding may
have to go towards structural improvements with other matching funds towards
cosmetic improvements. As recommended in the RDG Study, funds could be used to
restore the residential
upper portion of the downtown area. Research would need to be done as far as
structural inspection and recommendations of improvements. Determining the need
for economic
development- job creation, eliminating slum and blight and creating housing
would be factors before applying for the grant. A downtown area survey may have
to be completed to determine a
need for this type of program.
The Authority agreed that Larry Remmen should put these components pieces together and the Authority will place it on the agenda for future upcoming meetings.
C. Other
Larry Remmen updated the Authority
on the Industrial Park Project expansion. The government economic stimulus
package may not be able to be used towards this project, but
application through the normal grant program may supply additional funding for
the park development. Becker County may qualify due to their high unemployment
rate. Larry Remmen is
putting together a grant application to submit at the end of this week.
John Schneider of Community Properties LLC
– Vantage Point LLC formerly the Student Housing LLC was present. The Detroit
Lakes Student Housing balloon payment was due in
November of 2007. Schneider has been working on refinancing since that
time, and has been in contact with Larry Remmen regarding the payment and their
attempt for re-financing the
loan. They have been continuing to make payments. The original loan was for
$100,0000 and has been paid down to $77,000 with a twenty year amortization. A
motion was made
by Commissioner Dennis Winskowski, seconded by Commissioner Mary Beth Gilsdorf
to extend the loan for Community Properties LLC for a three year period at 7%
interest. Larry
Remmen will draw up an amendment to the original loan documentation.
VI. Adjournment
There being no further business to bring before the Board, the meeting was adjourned.
Signed
Larry Remmen Community Development Director