Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, August 30th 2005

4:30 PM

Conference Room

 City Administration Building

MEMBERS PRESENT:     Dixie Johnson, Tim Olson, Jim Anderson Tom Klyve, Mark Hagen,

                                Matt Brenk,   

MEMBERS ABSENT:      Greg Hildenbrand

OTHERS PRESENT:       Larry Remmen, Nancy Wichmann, Richard Grabow, Lou Guzek, Pippi

Mayfield, Bruce Imholte, Jim Hannon, G.L. Tucker, Leonard  Heltemes, Bill Briggs,

I.       Call To Order:

          Chairman Dixie Johnson 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, August 30, 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 Mark Hagen and carried unanimously to approve the minutes of the regular meeting held August 9th 2005 as presented.

III.    Financials:

A.      A motion was made by Commissioner Matt Brenk, seconded by Commissioner Jim Anderson and carried unanimously to approve the financial report and payment of claims for July 2005.    

IV.    Old Business:

A.      None

V.      New Business:

A.      Consideration To The 2006 Development Authority Budget

          Finance Director Lou Guzek presented the proposed 2006 budget for the Development Authority.  A motion was made by Commissioner Matt Brenk, seconded by Commissioner Tom Klyve and carried unanimously to approve the 2006 budget for the Development Authority as presented. 

B.      Discuss QZAB Debt Service Account

        Finance Director Lou Guzek presented and reviewed with the Authority the updated financials of the QZAB account for the Holmes Community Center. 

        Guzek noted that over a nine year period, the loan for Lodge On The Lake will generate $3,358,972.  The QZAB Bond Debt Service shows that in the year 2014 there is a shortfall of $341,395.  After discussion, the Authority agreed that Larry Remmen should generate a follow up letter to Holmes Center Inc., addressing the financial shortfall.

C.      Consideration to the request of Linda Livingston to delay closing on Lot 6, Block 1 for up to 6 months

        Larry Remmen circulated a letter of request to delay the closing of the purchase of  Lot 6, Block 1 North Industrial Park from Linda Livingston.  The request for delay of closing is due to the fact the Humane Society has learned they will not be able to build on the property donated to them by the City, near the yard waste disposal site on the Anderson property.  The Society has expressed an interest in joining with Livingston’s project.  The two are jointly researching possible revisions in building plans, rental and lease options.  Livingston plans to go ahead with her         project, whether or not the Humane Society joins in.  A six month extension until March 1, 2006 is requested.  A motion was made by Commissioner Tim Olson, seconded by Commissioner Jim Anderson and carried without a dissenting vote to approve the request for a 6 month extension.

D.      Other

        City Attorney Bill Briggs reported he has been working with Menard, Inc. to prepare and to complete the closing on the 56.6 acres west on Highway 10.  The original agreement states the seller is to deliver title to the subject property on the day of closing, free of all encumbrances.  Briggs reported there is a problem with the title dating back to 1923 and 1965.  This will require an act of quiet title, involving Becker County Title Services, Menard, Inc. and the City would like        to close the transaction contemplated in the Contract despite the fact that all encumbrances have not been removed.  In order to assure the removal of the Remaining Encumbrances the parties are negotiating to place a portion of the purchase price (the cash deposit) in escrow with Becker County Title Services, Inc. The escrow agent will hold the cash deposit in escrow until the removal of the remaining encumbrances in accordance with the escrow and disbursing agreement.  The Authority discussed that the odds of fixing the title are excellent.  Menard, Inc., would like to hold $200,000 in escrow.  If someone were to contest the title, it was agreed to have a provision for an extension in the agreement.  A motion was made by Commissioner Tom Klyve seconded by Commissioner Matt Brenk and carried unanimously to approve the escrow agreement with the         modification to mutually extend the time for correcting the title.    

VI.    Adjournment

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

                                                Signed  

                                                Larry Remmen