Minutes
of the
Regular Meeting of the
Detroit Lakes Development Authority
Tuesday, May 19, 2009
4:30 PM
City Administration Building
Conference Room
MEMBERS PRESENT: Jim Anderson, Mark Hagen, Dennis Winskowski, Bruce Imholte, Mary Beth Gilsdorf,
MEMBERS ABSENT: Tom Klyve and Greg Hildenbrand
OTHERS PRESENT: Robert Louiseau, Larry Remmen, Nancy Wichmann,
Jake Judd, Ron Zeman
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, May 19, 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 Mark Hagen seconded by Commissioner Mary Beth Gilsdorf and carried unanimously to approve the minutes of the regular meeting held April 21st, 2009 with a correction of New Business #A. of the motion to read: 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 ˝ % interest with a 20 year amortization and five year balloon, and carried with Commissioner Mark Hagen voting no, and Commissioner Bruce Imholte abstaining from the vote.
III. FINANCIALS:
A
motion was made by Commissioner Bruce Imholte, seconded by Commissioner Mary
Beth Gilsdorf and carried unanimously to approve the
financial report
and payment of claims for the periods ending March 31, 2009 and April 30th,
2009.
IV. OLD BUSINESS:
A. None
V. NEW BUSINESS:
A. Consideration to directional signage along Highway 59 for the North Industrial Parks;
Larry Remmen reported
when Public Utilities were checking into signage for their new utility warehouse
in the North Industrial Park with MNDOT,
it was learned that
directional signs for the DL North Industrial Parks were available to purchase
from MNDOT at a cost of $1,091 per sign. There
was no discussion and
this issue died for lack of interest and a motion.
B. Discuss proposals for the Crescent Redevelopment Project
· DLM Properties LLP
· Architectural Consortium
The Authority held discussion whether or not to have a closed session meeting on the proposals for the Crescent Redevelopment Project.
Larry Remmen reported that it the idea of having a closed session meeting was to allow the Authority the opportunity to discuss lot prices, strategy and counter offers relative to the Crescent Redevelopment Project.
Council member Ron Zeman reported that that a three day announcement of a closed meeting was necessary. Larry Remmen stated that he had a report on closed meeting procedures from Charlie Ramstad.
Commissioner Dennis Winskowski reported he did not see anything on the agenda or in either proposal that could not be public. Winskowski does not see how any negotiations could be made without the other parties present.
Imholte feels that a lot more information will be needed before he could vote on either proposal. He does not support either proposal.
Larry Remmen reported if a closed meeting was to be held, that no vote could be
taken. The meeting would be taped and the tape retained for eight years. A list of the persons in attendance would be required.
Bruce Imholte would like to look at the option of the City being the developer and
would be in favor of that 100%. There are people in the community and in the room who would be capable of developing the property, of course with some assistance.
Commissioner Winskowski did research and the New Market Tax Credit would be available to the City and to the proposed developer.
Mark Hagen and Larry Remmen agreed that the DLM proposal was not a fair proposal, and it appeared that DLM felt their property had value with the City’s having no value. Also, the design features were eliminated.
Ron Zeman said he did not receive a full packet nor did Jake Judd and they do not know what the proposals were referring to. Dennis reported basically the one developer pretty much sent in a resume and did not make a proposal, the other from
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DLM wanting the City to purchase the Mac’s building for $400,000 and then provide parking streets curbing, sewer and water and give them the land.
Commissioner Imholte would like the Authority to do some homework on the development on-going in Alexandria. Find out what type of development and what is the cost. He would like to go back and get more information from Architectural Consortium.
Bob Louiseau would like to discuss further with Architectural Consortium. He agrees that the DLM is a one sided proposal. He has concerns that the DLM proposal consisted of relocating existing businesses to the development. Where are the key attractions that should be brought in? What type of businesses should be brought into the area.
Ron Zeman reported with all of the community meetings with RDG and presentations the people of the community are excited about seeing something fresh and new in the Crescent area. When it comes down to relocating a telephone company and taco stand the people will be disappointed. The City needs to focus on something new and unique. And as far as closed meetings, when you have a closed meeting
you start to turn off a lot of people. Ron spoke to a Park Rapids person who had the same developer but their City had to put the development on hold due to lack of cash. Park Rapids does not settle for second best. If it means waiting they will. The people of our town need to know what is going on.
Larry Remmen does not disagree with keeping the meetings open and letting the public know what is going on, however, it is difficult for the Authority to openly discuss the kind of prices they are looking for land and what the development strategy is. There would be a problem negotiating with the developer when all of our discussion is public.
Dennis Winskowski stated that the strategy is clear that DLM proposal is not an acceptable proposal, and the other, Architectural Consortium is not a proposal.
Bruce Imholte would like to see some members of the Authority tour Alexandria and discuss their development with City officials and do some research on their project.
Mary Beth Gilsdorf questioned whether 2009 is the time to proceed with the development of the Crescent. With many businesses closing and the state of the economy, some big businesses are closing stores not adding another.
Bruce Imhotle felt the Authority should follow the RDG proposal and try and attract unique businesses.
A motion was made by Commissioner Dennis Winskowski seconded by Commissioner Mary Beth Gilsdorf and carried unanimously to reject both proposals and to direct staff to make contact with the proposers and discuss what the Authority felt was lacking in the proposals.
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C. Other
West
Central Initiative (WCI) Community and Visioning Grant Program is making
matching grants of up to $5,000 to assist broad based efforts to
develop a community consensus
concerning how to address a critical community need. The goal of this program
is to empower communities to find
ways to address critical needs
and to build the consensus necessary to encourage action through a community
based entrepreneurship approach.
A consultant would do the
visioning process. The area of focus would be Detroit Lakes and the Frazee
area. The request is for $2,000 from the DLDA;
$1,000 from the Frazee
Development Authority and $2,000 from the Minnesota State Community & Technical
College. The results of this program will
provide new businesses,
considering locating to the Detroit Lakes Frazee area, with information that our
community would provide to them, developing
a local entrepreneur program.
A motion was made by Commissioner Bruce Imholte, seconded by Commissioner
Dennis Winskowski and carried
unanimously to approve the
funding of up to $2,000 for West Central Iniative’s Community and Visioning
Grant Program provided the other entities
participate as listed.
VI. Adjournment
There being no further business to bring before the Board, the meeting was adjourned.
Signed Larry Remmen
Community Development Director