Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, June 28th, 2005

4:30 PM

Conference Room

 City Administration Building

 

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

                               

MEMBERS ABSENT:      Tim Olson and Matt Brenk

 

OTHERS PRESENT:       Larry Remmen, Nancy Wichmann, Pippi Mayfield, Rob Witt,                                       Bernie Sauer, James Hannon

 

I.       Call To Order:

          Chairman Dixie Johnson called the meeting of the Detroit Lakes Development Authority to order at 4:30 PM in the Public Utilities Conference Room of the City Administration Building, 1025 Roosevelt Avenue on Tuesday, June 28th 2005. 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 Jim Anderson, seconded by Commissioner Tom Klyve and carried unanimously to approve the minutes of the regular meeting held June 14th 2005 as presented.

 

III.    Financials:

A.      A motion was made by Commissioner Mark Hagen, seconded by Commissioner Jim Anderson and carried unanimously to approve the financial report and payment of claims for April and May 2005 .      

 

IV.    Old Business:

A.      Consideration to the request of MMCDC relative to the use of $2,000,000 in the QZAB Debt Service Fund for a loan at 7%

          The Authority reviewed their discussion of issues brought forth at the last meeting, whether or not MMCDC would guarantee the loan as presented and the fees that Bremer would charge to the City for withdrawal of funds.  MMCDC would not guarantee the loan.  Lou Guzek reported that Bremer Bank was willing to reduce the fees and work with the City with the replacement  of funds, and this should not have any weight on the decision being made.

 

        The Authority agreed there was no need to go through MMCDC, since there was no guarantee of the loan.  This is not a loan through our revolving loan fund but it is an investment of the QZAB Debt Service Funds.  The Authority is authorizing the     purchase of a loan participation directly with Midwest Bank.  A motion was made      by Commissioner Jim Anderson, seconded by Commissioner Mark Hagen and    carried unanimously for the Development Authority to participate in the        $2,000,000 in the QZAB Debt Service Fund Loan directly through Midwest Bank at         the time of buy out at the end of the construction period which is estimated to be on or about June 1st of 2006.

 

V.      New Business:

A.      Public Hearing and consideration to TIF Project 25-1, the Detroit Lakes Regional Chamber of Commerce at 700 Summit Avenue

          Chairman Dixie Johnson opened the public hearing.  Larry Remmen reported the Detroit Lakes Regional Chamber of Commerce is requesting tax increment financing of $50,000, as a redevelopment district on a pay as you go basis, to assist in the construction of a new 4800 square foot office building.  The total project cost is $450,000.  Larry Remmen circulated the substandard structure report and this district does qualify.  The hearing was closed.  A motion was made         by Commissioner Mark Hagen, seconded by Commissioner Greg Hildenbrand and carried unanimously to approve the request as presented.  Commissioner Mark Hagen noted that due to the Chamber’s unique project the duration is longer than would normally be acceptable. 

 

B.      Public Hearing and consideration to TIF Project 26-1, Long Bridge Heights Phase 2

        Chairman Dixie Johnson opened the public hearing.  MCMDC is requesting $325,000 in tax increment financing for the development of Long Bridge Heights Phase II, a 21 unit single housing development.  Terms of the second phase will be the same as Phase I.  $325,000 sale of bonds will be for road sewer and water.    MMCDC will guarantee bond payments if there is a shortfall. The hearing was closed.  A motion was made by Commissioner Jim Anderson, seconded by Commissioner Mark Hagen to approve the request as presented.  Commissioner Tom Klyve abstained from the vote.

 

C.      Consideration to the request of Curt Briggs for a right of first refusal on Lot 4, Block 1 Detroit Lakes North Industrial Park

          Larry Remmen reported that Curt Briggs has recently purchased two lots in the Detroit Lakes North Industrial Park, one of which was Lot 5, Block 1.  Briggs has offered $500 for a first right of refusal for a five year period for Lot 4, Block 1 Detroit Lakes North Industrial Park.  Larry Remmen reported this has been done in the past with Action Fabricators.  If the Authority were to receive an offer on Lot 4, Block 1, Briggs would be allowed five days to determine if he would purchase the property.  The Authority discussed the inventory of lots left in the North Industrial Park.  Larry Remmen stated there are four lots left.  A motion was made by Commissioner Jim Anderson, seconded by Commissioner Greg Hildenbrand and carried unanimously to deny the right of first refusal of Lot 4, Block 1, due to the low inventory of lots in the Detroit Lakes North Industrial Park.

 

VI.    Adjournment

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

 

                                                                Signed

 

                                                                Larry Remmen

                                                                Community Development Director