Minutes of the
Regular Meeting of the
Detroit Lakes Development Authority
Tuesday, June 17, 2008
4:30 PM
City Administration Building
Conference Room
MEMBERS PRESENT: Tom Klyve, Mary Beth Gilsdorf, Dennis Winskowski,
Matt Brenk,
MEMBERS ABSENT: Jim Anderson, Mark Hagen, Greg Hildenbrand
OTHERS PRESENT: Robert Louiseau, Larry Remmen, Nancy Wichmann, Jake Judd, Sungrown Foods LLC representative, Ed Gurkie
I. CALL TO ORDER:
In the absence of Chairman Jim Anderson, Vice Chairman Matt Brenk 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, June 17, 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 Tom Klyve seconded by Commissioner Dennis Winskowski and carried unanimously to approve the minutes of the regular meeting held May 22nd, 2008.
III. FINANCIALS:
A motion was made by Commissioner Mary Beth Gilsdorf, seconded by Commissioner Tom Klyve and carried unanimously to approve the financial reports and payment of claims for the period ending May 31, 2008.
IV. OLD BUSINESS:
A. Update On Business Corridor Study and Conference Center Study
Larry Remmen updated the Commissioners on the status of the Business Corridor and Conference Center
Study, reporting there was a meeting held May 22nd with the consultants to discuss issues. The consultants
would like to have another web meeting with the Authority regarding the Business Corridor Study
in mid-July and should be completing the study in August. The question is would the Authority like to
host a community meeting in August or wait until September. It was agreed to decide when to host a
community meeting after the web meeting in July. No action was taken. For information only, it was reported
that the Holiday Inn had been sold, and it was agreed the new owners should be contacted to discuss the
Conference Center Study with two members of the Authority.
B. Other
Larry Remmen circulated a letter he received from DLM Downtown Properties, LLP, Jeff Schlossman,
Jim Buus and Brent Kuehne with reference to their ownership and the development of the Macs building.
DLM has been in contact with RDG and openly communicating their willingness to alter their plans for
the Mac’s property so as to fit within the RDG plan. The letter stated they are willing to suspend the
Mac’s property plans if the City is interested in some type of deal that would involve “swapping” the
Mac’s property with the City for a comparable City-owned property nearby where they could begin a first
phase of the “crescent” commercial project. Their main obstacle is timing; as they have ongoing holding
costs of approximately $2,500 per month and liability risks relating to the vacant Macs property. They also
have an active list of prospective tenants and partners which want to get into a new space as soon as
possible. DLM does not want to wait 18-24 months as they feel many of the tenants would quickly
commit to the first phase of the “crescent” project if they could get something going this year.
The Authority agreed to have City staff design a plan with direction to develop a request for proposal with
guidelines for the development of the “crescent” portion of the Gateway Project. Bob Louiseau and
Larry Remmen will devise a work plan and present it to the Authority.
V. NEW BUSINESS:
A. Consideration to a request for Sungrown Foods, LLC for JOBZ incentives at the freezer
plant property (Bill Daggett)
Larry Remmen introduced Ed Gurkie, Sungrown Foods, LLC., representing Bill Daggett and other partners
in the company. Sungrown Foods LLC., is requesting JOBZ incentive credits to lease the vacant freezer
plant and start up a new business. The business would be manufacturing frozen sun-butter and jelly
sandwiches versus peanut butter and jelly sandwiches. Gurkie reported that allergies to peanuts is
forcing school districts to eliminate peanut butter in their lunch programs. Smuckers currently manufactures
150 million “Crustable" sandwiches using peanut butter and jelly, and expressed no interest in changing
their product line. This project would require swapping of JOBZ land. Larry Remmen reported that
this project is a good fit for JOBZ and for Detroit Lakes. The company is currently working with
MMCDC as well as the City. Sunbutter is currently manufactured in Fargo. This business would
like to be operational by August 2008. A motion was made by Commissioner Dennis Winskowski,
seconded by Commissioner Tom Klyve and carried unanimously to approve the JOBZ request for
Sungrown Foods, LLC. Larry Remmen will submit the necessary paper work to the State of Minnesota.
B. Other
Larry Remmen reported that he received an e-mail from a company who would like to feature Detroit Lakes
in their two minute segment on the television special “The Official Best of Minnesota 2008” and on their
internet travel site. The half hour television program will be aired on NBC KARE 11 Twin Cities and
KBJR 6 Duluth. The sponsorship cost is $3,900 which covers the two minute video segment, the
television airing and placement on their website for a full three year period. No action was taken
by the Authority and It was unanimously agreed to forward this opportunity to the Chamber’s Tourism
Bureau for any action to be taken. It was noted that the Development Authority would consider possible
funding assistance if a request was presented by the Tourism Committee.
VI. Adjournment
There being no further business to bring before the Board, the meeting was adjourned.
Signed
Larry Remmen
Community Development Director