Minutes

of the

Regular Meeting of the

Detroit Lakes Development Authority

Wednesday, October 22, 2008

4:30 PM

City Administration Building

Conference Room

MEMBERS PRESENT:               Jim Anderson, Matt Brenk, Greg Hildenbrand, Mark Hagen, Mary Beth Gilsdorf, Dennis Winskowski

MEMBERS ABSENT:                 Tom Klyve

OTHERS PRESENT:                   Robert Louiseau, Larry Remmen, Nancy Wichmann                                                                               

  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, October 22, 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 Matt Brenk seconded by Commissioner  Mary Beth Gilsdorf and carried unanimously to approve the minutes of the regular meeting held September 16, 2008.  

III.          FINANCIALS:

                A motion was made by Commissioner Mark Hagen, seconded by Commissioner Greg Hildenbrand and carried unanimously to approve the financial report and payment of claims for the period

                ending September 30,  2008 as presented.

IV.          OLD BUSINESS:

A.           None

V.           NEW BUSINESS:

A.           Consideration to the request of Lakes Cold Storage, LLC

                The Authority reviewed a letter received from Delta Daggett, Lakes Cold Storage, LLC, requesting consideration of a grant for payment toward the high electric bills incurred at their cold storage

                facility at 503 East Front Street.  Lakes Cold Storage LLC has owned the building since 2002, and was previously leased until January of 2008.           

                  Daggett has been putting together a business plan to buy out other members of the LLC, and operate a cold storage business in this facility.  The monthly high

                demand charge of electrical bills has been running at $4,900-$5,200 per month, during the time the building has been empty.  Curt Punt, Public Utilities   Superintendent, cannot adjust the

                charge.  Daggett is requesting a grant of 50% of all electric bills since February, or 100% for the months of September- December 2008.  Once the new business operation is running, the electricity

                will generate about $7,800 per month for the City of Detroit Lakes, based on the records from the previous tenant.

                Executive Director Bob Louiseau has discussed the issue with Public Utilities and explained that the demand charges are a pass through that the City has to pay. The past year’s peak usage or

                demand charge is carried forward to the City.   It is a cost recovery from Public Utilities and it is an absorbed incurred cost.   

                Possible ways of addressing the high cost is to install a generator or control mechanism to reduce the high demand charges. Bob Louiseau will meet with Public Utilities and Delta Daggett to discuss

                a demand cost saving program, and return to the Authority with a business start up request for assistance.

                A motion was made by Commissioner Mark Hagen, seconded by Commissioner  Matt Brenk and carried unanimously to deny the request of Lakes Cold Storage, LLC at this time, but will consider

                 in the future, business start-up assistance that  may be brought to the Authority for consideration.  

B.           Other

                Larry Remmen reported that DL Newspapers is producing a historical publication  recounting the last 150 years in Becker County.  USDA encourages advertising for IRP loans loans, and an ad

                also shows a support of the community. 

                Executive Director Bob Louiseau suggested the newspaper do a story on the history and development of the three industrial parks.  A motion was made by Commissioner Greg Hildenbrand seconded

                by Commissioner Mark Hagen and carried unanimously to have Bob Louiseau and Larry Remmen contact the newspaper to see if a story on the history of the industrial parks would be of  interest to

                the paper and to make a decision about placing an ad based upon on the outcome of the article.  Commissioner Dennis Winskowski abstained from the vote.

C.           Copies Of A Draft Of The Conference Center Study

                Copies of the Conference Center Study were distributed to the Authority members.  The Commissioners were to review the draft and present any comments to Larry Remmen.

VI.          Adjournment

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

                                                                                                                Signed                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

                                                                                                Larry Remmen, Community Development Director