Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, March 20, 2007

 4:30 PM

Conference Room

 City Administration Building

MEMBERS PRESENT:     Jim Anderson, Dixie Johnson, Matt Brenk, Mark                                                                        Hagen, Greg Hildenbrand, Tom Klyve

MEMBERS ABSENT:      Tim Olson

OTHERS PRESENT:       Larry Remmen, Community Development Director,  Nancy                                         Wichmann, Richard Grabow, John King

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, March 20, 2007.  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 Tom Klyve, seconded by Commissioner Greg Hildenbrand and carried unanimously to approve the minutes of the regular meeting held February 21, 2007.

III.    Financials:

A.      A motion was made by Commissioner Dixie Johnson, seconded by Commissioner Mark Hagen and carried unanimously to approve the financial report and payment of claims for the periods of January  2007 and February 2007.

IV.    Old Business:

A.      Consideration to the setting sales price and policies relative to Detroit Lakes North Industrial Park – First Addition

          The Commissioners reviewed the following information regarding the development of the Detroit Lakes North Industrial Park-First Addition.  

        Number of Lots                   22

        Useable Acres                     58

        Total Land Costs                 $258,477

        Land Cost/Acre                   $4,457/Acre

        Street Sewer & Water

        Total Development Cost       $1,800,000

        Per Acre Cost                      $31,034/acre

        Total Per Acre Cost              $35,500

        These costs show that a 2 acre lot would need to be sold for $71,000 in order to break even. The Authority agreed they need to determine an up-front amount to charge and how much to assess.  Larry Remmen reported that to currently create three lots the cost would be $135,000. After discussion a motion was made by Commissioner Matt Brenk seconded by Commissioner Dixie Johnson and carried to set the lot prices at $49,000 with a $22,000 special assessment.  The purchaser must build within one year.

        A motion was made by Commissioner Mark Hagen, seconded by Commissioner Matt Brenk and carried that the three lots in the Detroit Lakes North Industrial Park First Addition be sold to a manufacturing type of business and any deviation of business type to be brought before the Development Authority for approval.

V.      New Business

A.      Consideration to the request of MMCDC for a release of mortgage and early release of loan/grant

        John King, MMCDC was present to request an early release of mortgage loan/grant for the Graystone.  The maturity date is December 31, 2009.  A change in accounting rules is reason for the request.  Larry Remmen reported he received a letter from the State of Minnesota stating they do not have the authority to prevent early forgiveness of this loan or hold the City in any debt if the loan is forgiven. Conditions set for the grant money had been met and the medium to low   income guidelines set by MHFA were more strict than the Authority’s conditions. Larry Remmen reported that the early forgiveness would not have an impact on the Development Authority’s books.  A motion was made by Commissioner Dixie Johnson, seconded by Commissioner Mark Hagen and carried to grant the release of the grant/loan for the Graystone, with Commissioner Tom Klyve opposing.

VI.    Adjournment

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

                                                                Signed                                                                

                                                                Larry Remmen                                                                                                     Community Development Director