Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, August 7, 2007

Conference Room

 City Administration Building

MEMBERS PRESENT:     Jim Anderson Mark Hagen, Tom Klyve, Matt Brenk and Dennis Winskowski

MEMBERS ABSENT:      Mary Beth Gilsdorf and Greg Hildenbrand

OTHERS PRESENT:       Larry Remmen, Community Development Director, Bruce Imholte, Leonard Heltemes, Boone Caughey and Pippie Mayfield

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, August 7, 2007.  All members of the Authority have been duly notified of the meeting and the business to betransacted.

II.     Minutes:

        A motion was made by Commissioner Mark Hagen seconded by Commissioner Tom Klyve and carried unanimously to approve the minutes of the regular meeting held July 17, 2007 as presented.

III.    Financials:

A.      Consideration to the approval of the financial statement and payment of claims through June 30, 2007

          A motion was made by Commissioner Tom Klyve, seconded by Commissioner Matt         Brenk and carried without dissent to approve the financial statement and payment of claims

IV.    Old Business

A.      Consideration to sign design for the airport sign

          Larry Remmen showed the Board several sign ideas for the airport sign.  After a brief discussion, Mark Hagen made a motion to replace “Industrial Opportunity” with “Development Incentives” and use the simple layout without any State logo. The motion was seconded by Commissioner Matt Brenk and carried unanimously.

        Larry Remmen will contact Fastsigns right away to put up the new sign.  The estimated cost is $5,699.83.

B.      Other:

          There was no other old business

V.      New Business

A.      Consideration to an advertisement in the “American British Business” publication

          Larry Remmen presented the Board with a sample advertising page of “American         British Business” and stated the cost of a small ad as $1,200.  The Board briefly discussed the idea of placing an ad.

        A motion was made by Commissioner Mark Hagen, seconded by Commissioner Dennis Winskowski and carried unanimously to decline advertising with “American British Business”.

B.      Consideration to redeeming $255,000 in TIF bonds for the Grover Lindberg project with a 4% PUC Loan

        Larry Remmen explained that the Grover TIF Project was originally designed with the owner making a partial bond payment similar to a special assessment.  He also noted that legislative changes to real estate tax collections drastically lowered the amount of TIF collections.  By calling the bonds and obtaining a 4% loan, the interest cost to this TIF District will be reduced by $57,692 dollars.

          A motion was made by Commissioner Dennis Winskowski, seconded by Commissioner Matt Brenk and carried unanimously to obtain a PUC loan and call the bonds on the Grover TIF Project.  Larry Remmen will present this request at the September Public Utilities Meeting.

C.      Consideration to sending out a request for proposals of a Business Corridor Redevelopment Study and a Conference Center Redevelopment Study

          Jim Anderson and Mark Hagen reported that the subcommittee had met several times and the request for proposals has been revised to their satisfaction and was ready to send out to consultants.

        A motion was made by Commissioner Mark Hagen, seconded by Commissioner Tom Klyve and carried without dissent to send out the RFP’s with a September 20, 2007 deadline for submitting proposals. 

D.      Consideration to the loan request of Northwest Eye Care

          Due to a conflict of interest, Jim Anderson turned the meeting over the Matt Brenk and left the meeting. 

        Larry Remmen reported that the loan would actually be to L & J Properties, LLC which is a real estate holding company.  L & J is Larry and Joyce Morrison.

        The loan request is for a $90,000 loan at 8.25% for 20 years.  The project is to         construct a 5000 square foot eye clinic and the total project cost is 1.2 million.   MMCDC is the lead lender on this project.  Security would be a second mortgage   and personal guarantees.  Larry Remmen stated that a 20 year amortization was   acceptable but generally we would have a 5 or 7 year balloon.

        Boone Caughey with MMDC stated that their loan would balloon in 7 years and a 7 year balloon on our loan would be a nice fit. 

        The Board discussed the request and reviewed the loan application information.  A         motion was made by Commissioner Mark Hagen, seconded by Commissioner Matt Brenk and carried with Commissioner Dennis Winskowski abstaining to approve a loan of $90,000 (IRP and $22,500 RLF) at 8.25% 20 year amortization and a 7 year balloon to L & J Properties LLC.  Note:  The Board took action on this loan today instead of waiting until its August 21^st meeting in order to assist with the project getting started as soon as possible due to the lateness of the year.  This will allow the owner to make use of as much of the construction season as possible.

VI.    Adjournment

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

                                                        Signed                                                                                                              

                                                                                                                                                                                Larry Remmen                                                                                                                     Community Development Director