Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, April 15th, 2008

4:30 PM

City Administration Building

 Conference Room

MEMBERS PRESENT:  Tom Klyve, Mary Beth Gilsdorf, Mark Hagen

                                    and Greg Hildenbrand,  Dennis Winskowski                                                                            

MEMBERS ABSENT:   Jim Anderson, Matt Brenk

OTHERS PRESENT:     David Spies, Larry Remmen, Community Development

                                    Director,  Bob Louiseau, Nancy Wichmann, Jim Hannon

I.        Call To Order:

          In the absence of Chairman Jim Anderson and Vice President

          Matt Brenk, Secretary Mark Hagen 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 Tuesday, April

          15, 2008.  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 Tom Klyve, and carried unanimously to approve the minutes

         of the regular meeting held January 15^th, 2008.  For information only, the

         Authority noted that numerous special meetings had been held during the period

         of January 2008 through April 2008 with reference to the Detroit Lakes

         Business Corridor Redevelopment Plan.   It was noted that the plan deadline

         was originally for August of 2008; however, with the inclusion of North

         Washington Avenue the deadline time may be extended.

III.      Financials:

         A motion was made by Commissioner Tom Klyve, seconded by Commissioner

         Greg Hildenbrand and carried unanimously to approve the financial report and

         payment of claims for the 2007 year end through February, 2008.

IV.      New Business

          Consideration to the request for tax increment financing for a

           Redevelopment Project at 1377 West Lake Drive, David Spies

         Larry Remmen reported that David Spies is proposing to tear down the

         current bowling alley at 1377 West Lake Drive and construct 21 condominium

         units.  Spies would like to construct a new bowling alley at another location.

         The request is for $789,000 in tax increment financing funds which would be

         a portion of the five and one half million dollar project.

         Reconstruction of the bowling alley could only support investment of

         $600,000-  $700,000 to reconstruct another bowling alley with new lanes

         and equipment, based on current cash flow of the bowling center.  Davis Spies

         also noted that special pilings are required at a cost of $500,000 to $600,000.

         on the condominium site, and tearing down the bowling alley building is quite costly.

         The projected average price range of the condominiums would be from

         $304,000 to $310,000 for 1370 to 1620 square foot units. 

        Commissioner Dennis Winskowski questioned whether this project is within

        the goals and policies set by the Development Authority, as well as whether

        the Development Authority should fund upper income housing projects;  or

        fund projects that would be in competition with other housing projects; and

        does the Authority require a commitment of a relocation of the bowling alley if

        the project is funded.  David Spies reported that the project was actually two projects,

        a condominium development project and relocation and reconstruction

        of a bowling alley.

          The Commissioners discussed the following issues

·            The condominiums would require redevelopment of the site, which has unique environmental issues with wetlands and the lake.   Will this type of development be favorable for the environmental issues?

·            The impervious surface of the site will be reduced from 34.6% down to 20-25%       impervious surface;

·            The Authority agreed they would like to make sure the bowling alley would be reconstructed and preferably on a site that needs redevelopment;

·            Does the Authority fund market based housing;

          It was agreed that David Spies requires some sort of preliminary approval

          or direction.   David Spies will put together a more specific proposal for

          review at the next Authority meeting. 

          Secretary Mark Hagen tabled the discussion on the David Spies Tax

          Increment Financing request until the next meeting date of May 6^th, 2008.

B.      Other

          None

VI.      Adjournment

          There being no further business to bring before the Board, the meeting

           was adjourned.  

  Signed      

Larry Remmen                                                                                                                            Community Development Director