Minutes
of the
Regular Meeting Of
DETROIT LAKES DEVELOPMENT AUTHORITY
Tuesday, July 12, 2005
4:30 PM
Conference Room
City Administration Building
MEMBERS PRESENT: Dixie Johnson, Tom Klyve, Mark Hagen, Greg Hildenbrand, and Matt Brenk
MEMBERS ABSENT: Tim Olson and Jim Anderson
OTHERS PRESENT: Larry Remmen, Nancy Wichmann, Pippi Mayfield, Rob Witt, Bernie Sauer and 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, July 12th 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 Mark Hagen, seconded by Commissioner Tom Klyve and carried unanimously to approve the minutes of the regular meeting held June 28th 2005 as presented.
III. Financials:
A. A motion was made by Commissioner Mark Hagen, seconded by Commissioner Matt Brenk and carried unanimously to approve the financial report and payment of claims for April and May 2005 .
IV. Old Business:
A. None
V. New Business:
A. Consideration to the request of Marine Innovations for a 75,000 loan, JOBZ incentives and the lease of a 13,000 square foot building
Commissioner Tom Klyve stated he would abstain from this item. Larry Remmen reported that Marine Innovations owned by Mike and Lori Botzet was currently located in Frazee and was planning an expansion. They started an incline tram business nine years ago. They currently have 13 full time employees and annual sales of about $2 million dollars. They plan to add five new jobs and the proposed expansion. They have discussed building their own facility or leasing a building with the option to buy. Mike and Lori feel that the lease option is best for their business right now. They are also requesting a $75,000 equipment loan at 5% interest and JOBZ incentives. They are working with Midwest Bank on a $115,000 consolidation loan and a $100,000 line of credit. Larry Remmen stated their financials are not strong but show cash flow to cover the proposed debt.
We will need personal tax statements and personal financial statements in order to take action on a loan. In order to draft lease terms we will need to know the building costs. Larry Remmen will get quotes from several builders for the type of building being considered. Botzet’s have budgeted $6,000 per month for lease payments.
A completed application and a public hearing are required for JOBZ incentives. Marine Innovations would also need to add and keep five new employees after being approved for JOBZ in order to qualify for the incentive.
Mike and Lori responded to a question from the Board regarding their business. Mike stated that they have reinvested profits into the business. He felt that if the basic structure and supports are in place, they could put in the rail system for a 5 ton crane.
Matt Brenk felt he was okay with a building lease and also a loan if there was enough equipment for collateral. Mark Hagen was concerned about the debt refinancing. The Authority will make a determination regarding this request at its meeting on July 26th.
B. Discuss possible acquisition of the Harlan Koenig property on Richwood Road
Larry Remmen stated that this matter was discussed at Strategic Planning in May. The consensus at that time was it may be necessary to acquire this property in order to get annexation going in this area. Another alternative is to talk to Detroit Township about orderly annexation in this area. Larry Remmen reminded the Board that Mr. Koenig wanted $350,000 for this property in 2002. The lot is 105 acres with only 55 acres that are useable and this is split up by wetlands.
The consensus of the Board was to explore other means of annexation before considering the acquisition of this property.
VI. Adjournment
There being no further business to bring before the Board, the meeting was adjourned.
Signed
Larry Remmen
Community Development Director