Minutes

of the

Regular Meeting of the

Detroit Lakes Development Authority

Tuesday, April 21 2009

4:30 PM

City Administration Building

Conference Room

MEMBERS PRESENT:              Jim Anderson, Mark Hagen, Dennis Winskowski, Bruce Imholte, Mary Beth Gilsdorf, Greg Hildenbrand

MEMBERS ABSENT:                Tom Klyve  

OTHERS PRESENT:                 Robert Louiseau, Larry Remmen, Nancy Wichmann,  

                                                Mike Stearns, Marty & Patty Eckern, Cy Field, Dan Paul

  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 Tuesday, April 21st, 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 Dennis Winskowski seconded by Commissioner Mark Hagen and carried unanimously to approve the minutes of the regular meeting held April 7th, 2009 with attendance list corrected.    

III.     FINANCIALS:

          None

IV.     OLD BUSINESS:

A.      None

V.      NEW BUSINESS:

A.      Consideration to the loan request of Apex Electric for a $29,410 IRP loan

          Larry Remmen reported that Apex Electric is requesting an IRP loan in the amount of  $29,410 to assist in the purchase of a building on Dan Street to expand and relocate their business.  The total project cost is $149,000.  Marty Eckern reported that their business started out as an electrical contractor originally employing 4 people, and has expanded to 11 employees, with the business growing and not feeling the affects of a poor economy.  Apex serves residential, commercial and industrial customers.   

          Their future projections are to hire an additional 6 people.  Eckern’s background is in motor repair, and may add that service to his business.  Thermal imagining (thermography) is also another service Apex offers.  Many insurance companies are mandating thermal imaging.  

          A motion was made by Commissioner Mary Beth Gilsdorf, seconded by Commissioner Greg Hildenbrand to approve the IRP loan request for $29,410, with a 20 year amortization with a five year balloon.  Commissioner Bruce Imholte abstained from voting.

          An amendment to the motion was made by Commissioner Dennis Winskowski, seconded by Commissioner Bruce Imholte to approve the $29,410. IRP loan for Apex Electric at 5 ½% interest with a 20 year amortization and five year balloon, and carried unanimously with Commissioner Bruce Imholte abstaining from the vote.

          Interest Rate Request From Lodge On The Lake

          Larry Remmen reported that Mike Stearns from Midwest Bank was present to discuss the request of a new interest rate for Lodge On The Lake.  Midwest Bank bank’s loan to Lodge On The Lake has reduced their rate to 5.77%.  The request is for the Authority to match the bank’s interest rate, which will be in effect until June 4, 2013 when the rate will be reset at the five year Federal Home Loan Bank of Des Moines’ Fixed Rate Advance Rate plus 250 basis points.  This rate should be in effect for another five years and should be the interest rate the Authority would receive until the projected payout of this credit on or before June 14, 2014.  Stearns reported any additional interest rate modification request from the Lodge would have a $1,000 modification fee. If the Authority chose not to allow the interest reduction, the Lodge could pay off the loan to the Authority and finance completely through the           bank at 5.77%.  A motion was made by Commissioner Dennis Winskowski, seconded by Commissioner Mary Beth Gilsdorf and carried unanimously to reduce the interest rate to 5.77% for Lodge On The Lake.  Commissioner Bruce Imholte abstained from the vote. 

          Sale of Lincoln Rink property to MeritCare

          A motion was made by Commissioner Bruce Imholte, seconded by Commissioner Mary Beth Gilsdorf and carried unanimously to approve the sale of the Lincoln Rink property to MeritCare for $287,500. 

VI.     Adjournment

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

                                                                             Signed                                                                                                                                                                                                                             Larry Remmen, Community Development Director