Minutes

of the

Regular Meeting of the

Detroit Lakes Development Authority

Tuesday, January 5th, 2010

4:30 PM, City Administration Building,

Conference Room

MEMBERS PRESENT:      Jim Anderson, Dennis Winskowski, Greg Hildenbrand, Bruce Imholte, Tom Klyve and Mary Beth Gilsdorf

MEMBERS ABSENT:         Mark Hagen

OTHERS PRESENT:          Robert Louiseau, Pippi Mayfield and 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
             Tuesday, January 5, 2010.  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 Bruce Imholte seconded by Commissioner Greg Hildenbrand and carried unanimously to approve the minutes of the regular meeting held December 15,
            2009.           

III.        FINANCIALS:

A.        CONSIDERATION TO THE APPROVAL OF THE FINANCIAL REPORT AND PAYMENT OF CLAIMS THROUGH NOVEMBER 30, 2009

            A motion was made by Commissioner Tom Klyve, seconded by Commissioner Dennis  Winskowski and carried without dissent to approve the financial report and payment of claims through November
           30, 2009.

IV.       OLD BUSINESS:

A.        None

V.        NEW BUSINESS:

A.        CONSIDERATION TO A SHARED FIRST LIEN POSITION AND HELICOPTER  VALUE  RELATIVE TO THE SNOWYOWL AVIATION LOAN (INFORMATION RELATIVE TO THE  
           HELICOPTER’S VALUE)

            Executive Director Robert Louiseau reported that he had spoken to Todd Centerwall of SnowyOwl Aviation.  Mr. Centerwall expressed concerns with some of the information that  Authority was to review
            and felt the presenters of the information and SnowyOwl had a conflict of interest.  Bob suggested that Mr. Centerwall get an estimate from  various sources, on how much it would cost to make the
           helicopter functional. He thought the Authority would defer  action for two weeks and make a decision after reviewing the new information, including the expert from Sweden that Mr. Centerwall has
           recommended as a source. 

            Commissioner Bruce Imholte made a motion to deny the loan request because he does not feel the Development Authority should share the first position with West Central

            Initiative and that the business plan is not sufficient.  Commissioner Dennis Winskowski seconded the motion and it remained on the floor.  Discussion followed.

            Commissioner Imholte expressed his concern with the amount of staff time spent on this type of a minor loan for the Authority.  Commissioner Dennis Winskowski stated he was in favor to originally
            approve this loan, but after review determined there are too many grey areas in the proposal.  He agrees with Commissioner Imholte that too much time has been spent on the loan.  Commissioner Mary
           Beth Gilsdorf expressed that she would be more in favor of  approving a loan for the operation of a business, not to get a helicopter fixed.  The Authority discussed if the request were deferred by two
           weeks would it make a difference in their opinion.
  

            A motion was made by Commissioner Bruce Imholte, seconded by Commissioner Dennis Winskowski and carried unanimously to deny the loan request based on the lack of a working helicopter, the
           insufficient business plan, and the sharing of a first position on the loan with West Central Initiative. 

            Chairman Jim Anderson asked Executive Director Robert Louiseau to contact Mr. Centerwall and tell him that the Authority would welcome the opportunity to consider a future request with  more firm
            information in the request. 

B.        Other

            The Authority reviewed information on the up-for-auction Grover Lindberg property along with property values in the general vicinity of Grover Lindberg.  Executive Director Louiseau reported that in
            addition to the minimum bid price for Grover Lindberg, there is an additional 5% buyer’s premium.  The Commissioners discussed the Lindberg property, potential property use, and surrounding land.  It
            was unanimously agreed that the Authority will not take any action on the property until after the auction sale.  Depending on the outcome of the auction  will determine future direction for the Development
           Authority’s action.   

VI.       Adjournment

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