Minutes of the Regular Meeting of the

Detroit Lakes Development Authority

Tuesday, July 1, 2008

4:30 PM

City Administration Building

Conference Room

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

MEMBERS ABSENT:                 Dennis Winskowski, Mary Beth Gilsdorf

OTHERS PRESENT:                    Robert Louiseau, Larry Remmen, Nancy Wichmann, Jake Judd, Pippi Mayfield, 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, July 1, 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 Mark Hagen and carried unanimously to approve the minutes of the regular meeting held June 17, 2008.  

III.          FINANCIALS:

                None

 IV.         OLD BUSINESS:

A.           None

A.           A public hearing to give consideration to a request for Sungrown Foods, LLC for JOBZ incentives at the freezer plant property and approval of a Business Subsidy Agreement (4.5 Acres)

                Chairman Anderson opened the public hearing.  There was no public comment   and the hearing was closed. Larry Remmen reported that Sungrown Foods LLC is requesting JOBZ incentives for a start-up

                business that will initially create at least 5 new jobs.  The company will manufacture frozen Sunbutter and jelly sandwiches.  The company plans to be operational by September 1, 2008.   A  motion was

                made by Commissioner Matt Brenk, seconded by Commissioner Tom Klyve and carried unanimously to approve the JOBZ incentive request and business subsidy agreement for Sungrown

                Foods LLC as presented. 

B.           Discuss latest draft of Conference Center Study

                The Authority reviewed the Draft Conference Center Study received from ERA,   Economic Research Associates, for the City of Detroit Lakes.  The Commissioners would like to receive more specific

                 information as follows:

·         specific list of possible participants;

·         specific rotation of events listing how often and how many people would be in attendance;  

·         detailed information about the main competition (Thumper Pond and Shooting Star Casino) with clarification of numbers of people in attendance;

·         concerns with the revenues generated;

Larry Remmen reported that a webinnar meeting will be held with the Authority, RDG and ERA for open discussion and to answer the questions from the Authority   Executive Director   Bob Louiseau reminded the Authority that the Conference Center Report is just a part of the Gateway Project Plan and the Council will review the study and determine what priority this issue plays in the Gateway Project. There will be a public meeting to receive input and the City Council will determine if any action is to be taken.  Larry Remmen will be informing the Authority of the date and time of the webinnar meeting. 

C.           Study review Marina Condominium TIF Collections

                Larry Remmen reported that Marina Condominiums has had a shortfall on their TIF collections in 2005, 2006 and 2007.  The Marina Condominium TIF Project requires $20,750 annually to make the required

                bond payments.  The Authority’s   Development Agreement requires the Developer to make up any short fall.  The Developer has requested a delay in making up the short fall as collections should eliminate

                the short fall by 2012, and a delay is requested to see if things turn around.  Commissioner Mark Hagen feels the $2,450 in interest due to the City should be paid.

                A motion was made by Commissioner Mark Hagen, seconded by Commissioner Greg Hildenbrand and carried unanimously to have Finance Director, Lou Guzek calculate the amount of investment

                income on the cash each year on the outstanding balance and bill Wint Johnson for the collective loss of investment income on the cash.   

                Other

                Executive Director Bob Louiseau reported that he had preliminarily discussed    with and invited Gary Nansen to sit in on the upcoming webinnar meeting with  RDG and ERA to familiarize him with the project

                and the upcoming utility changes.

V.           NEW BUSINESS:

VI.          Adjournment

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

                                                                                                Signed                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

                                                                                                Larry Remmen, Community Development Director