Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, September 4, 2007

Conference Room

 City Administration Building

MEMBERS PRESENT:     Jim Anderson, Tom Klyve, Matt Brenk, Dennis Winskowski and Mary Beth Gilsdorf

MEMBERS ABSENT:      Mark Hagen and Greg Hildenbrand

OTHERS PRESENT:       Larry Remmen, Community Development Director, Ron Zeman, Leonard Heltemes, Larry Buboltz and James Hannon

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, September 4, 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 Commissioner Mark Hagen seconded by Commissioner Tom Klyve and carried unanimously to approve the minutes of the regular meeting held August 7, 2007 as amended to read 5000 square foot eye clinic.

III.    Financials:

A.      Consideration to the approval of the financial statement and payment of claims through July 31, 2007

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

IV.    Old Business

A.      None

V.      New Business

A.      Consideration to the loan request of Broadway Welding

          Larry Remmen reported that Broadway Welding was requesting a $50,000 loan from the Detroit Lakes Development Authority for a project cost of $110,000 for debt refinancing and property down payment.  The company also plans to acquire the Snappy building for $400,000 with $20,000 in equity and loans of $140,000 from WCI and $240,000 from Blackridge Bank.

        The loan request is for $50,000 for 5 years at 6.75%.

        Larry Remmen introduced Don Smith, one of the owners of Broadway Welding. Don stated that the company has been in business since 2004 and currently has 13 employees.  They have outgrown their space at Swanson’s Repair.  The company plans to add two new employees in 2007 and 2 or 3 more in 2008. 

        In response to questions, Don noted that BTD was their largest customer.  Larry         Remmen stated that the loan process was to review the application and ask questions at our first meeting and do the actual loan approval at the next meeting. Larry also noted West Central Initiative will meet on September 12^th to consider their loan for this project.

        Dennis Winskowski felt that action could be taken today on this loan request.

        A motion was made by Dennis Winskowski seconded by Matt Brenk and carried         unanimously to approve a $50,000 ($37,500 IRP and $12,500 RLF) loan for Broadway Welding at 6.75% for five years.

        Tom Klyve made a friendly amendment that security for the loan include a second         position on inventory, equipment and a third mortgage on the building, along with personal guarantees and life insurance.  The amendment also passed. unanimously.

B.      Consideration to Business Showcase Advertising

        Dennis Winskowski excused himself from the meeting.  Detroit Lakes Newspaper was promoting a 14 week ad campaign called Business Showcase.  The cost is $85.00 per week for a 4 inch ad.

        The Committee discussed the proposal and their advertising needs.  By consensus they agreed that the Authority did not have a strong need to advertise locally at this time.  The Board did direct Larry Remmen to obtain some information from Dave Aune regarding advertising in the “Fargo Forum” or “Prairie Business”.

        A motion was made by Commissioner Mary Beth Gilsdorf, seconded by Commissioner Tom Klyve and carried without dissent, not to advertise in the business showcase. 

C.      Other

          Larry Remmen informed the Board that the new airport sign was installed.          Commissioner Matt Brenk said it looked very good.

B.      VI.    Adjournment

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

                                                        Signed                                                                                                              

                                                                                                                                                                                Larry Remmen                                                                                                                     Community Development Director