Minutes

Of The

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, May 9, 2006

4:30 PM

Conference Room

City Administration Building

 

MEMBERS PRESENT:       Jim Anderson, Dixie Johnson, Matt Brenk, , Tom Klyve, Greg  Hildenbrand, Tim Olson

 

MEMBERS ABSENT:          Mark Hagen

 

OTHERS PRESENT:           Larry Remmen, Community Development Director, Richard Grabow,  Nancy Wichmann, Bruce Imholte, Ron Zeman, Leonard Heltemes, James   Hannon, GL Tucker, Mayor Larry Buboltz

 

  I.        CALL TO ORDER:

            Chairman Jim Anderson called the meeting of the Detroit Lakes Development Authority to order at 4:30 PM in the Council Chambers of the City Administration Building, 1025 Roosevelt Avenue on Tuesday, May 9th, 2006.  All members of the Authority having been duly notified  of the meeting and the business to be transacted. 

 

II.         MINUTES

            A motion was made by Commissioner Greg Hildenbrand seconded by Commissioner Matt  Brenk and carried unanimously to approve the minutes of the regular meeting held April 25th, 2006.

 

III.        FINANCIALS

A.        None

 

 IV.      OLD BUSINESS

A.        Review Of IRP Advertising

            For information only, Larry Remmen reported that Kathy Coyle, USDA’s Rural Development  Business Cooperative Specialist had sent the DLDA a letter of response with reference to the Authority’s  annual Intermediary Re-lending Program review on April 4, 2006.  Coyle suggested the Authority proceed with local advertising of available IRP funding, and would like   the Authority to consider expanding their territory to serve all of Becker County.   Larry     Remmen reported that the City’s enabling ordinance permitted the Authority to do so.

 

 

  V.      NEW BUSINESS

A.        Consideration to the IRP advertisements

            Kathy Coyle, USDA/IRP auditor recommended advertising more to inform the general public of IRP funds available through the DLDA.  Letters have been sent to all local lending institutions. Larry Remmen circulated advertising options and prices received from DL  Record/Tribune.   A motion was made by Commissioner Tom Klyve seconded by           Commissioner Tim Olson and carried unanimously to approve advertising in the Record/Tribune a combination package as discussed  with a color add, running 4 weeks/ 8 ads starting Sunday May 18th. Council member Bruce Imholte suggested an in house lunch  seminar, which will be kept on the agenda. 

 

B.        Approve access road to Floral Impressions

            Larry Remmen presented a more detailed map than previously discussed illustrating the access road to Floral Impressions, provided by the Minnesota Department of Transportation. 

            A motion was made by Commissioner Matt Brenk, seconded by Commissioner Dixie Johnson and carried unanimously to approve the access road to Floral Impressions as presented.

 

C.        Consideration to a resolution to amend the Pledge Agreement between HCI and the DLDA relative to QZAB’s

            Commissioner Tom Klyve abstains from the discussion and motion.  The Authority previously made a construction loan to the HCI of $1,500,000 through Public Utilities.  A pledge agreement  was also made from HCI stating if there is any shortage in QZAB Debt Service Fund that HCI  would make up the shortage.  At the present time, there is a shortage of $225,000.  A resolution relative to the approval of an amendment pledge agreement between   HCI and the    DLDA requiring Holmes Center Inc., to make $225,000 payment for the QZAB     Debt Service Fund and agreeing to cancel a note in the original amount of $1,500,000. was   reviewed.  A motion was made  by Commissioner Tim Olson, seconded  by Commissioner  Greg Hildenbrand and carried to approve the resolution as presented, with Commissioner Dixie Johnson voting no and Commissioner Tom Klyve abstaining from the vote.

 

D.        Consideration to the cancellation of a note with HCI relative to a $1,500,000 loan and amending the loan Agreement with Detroit Lakes Public Utilities on said loan.

            A motion was made by Commissioner Matt Brenk, seconded by Commissioner Tim Olson and  carried to approve the Detroit Lakes Development Authority Resolution relative to canceling  the $1,500,000 promissory note with Holmes Center, Inc. as presented, with Commissioner Tom Klyve abstaining from the vote.   

 

E.        Other

            Larry Remmen reported he received an offer from Curt Briggs to purchase Lot 4 Block 1 in the North Industrial Park  for $30,000 with a closing date on or before October 31, 2006.  The long closing date is due to Briggs currently working with a client for development.  A motion was made by Commissioner Matt Brenk, seconded by Commissioner Greg Hildenbrand and  carried unanimously to accept the offer.

VI.       Adjournment

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

 

                                                                                                Signed

 

 

 

                                                                                                Larry Remmen

                                                                                                Community Development Director

 

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