Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, September 5, 2006

 4:30 PM

Conference Room

 City Administration Building

MEMBERS PRESENT:     Jim Anderson, Matt Brenk, Tom Klyve, Tim Olson

MEMBERS ABSENT:      Greg Hildenbrand, Mark Hagen, Dixie Johnson

OTHERS PRESENT:       Larry Remmen, Community Development Director, Nancy                                          Wichmann, Richard Grabow, Carol Turner, Kari Wendt, Lynn                                      Thomas

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 5, 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 Matt Brenk, seconded by Commissioner Tom Klyve and carried unanimously to approve the minutes of the regular meeting held August 22, 2006.

III.    Financials:

A.      None

IV.    Old Business:

A.      Update on Business Development Infrastructure Grant for the Industrial Park

        Larry Remmen reported that a preliminary application was sent to the State for a  Business Infrastructure Grant for the Detroit Lakes North Industrial Park.  The State received approximately 50 applications and accepted 20 full applications.    Detroit Lakes’ application for $900,000 was one that was not accepted. The State indicated that any grant request over $500,000. was placed low on the State’s priority list.  Larry Remmen recommends we revise our application and submit it         again in April of 2007. 

B.      Update on PUC Loan and Grants Funds

          The Authority reviewed the PUC Loan Funds and Loan Status Report.  Larry Remmen reported there was $644,000. available.  All loans are current.

C.      Discuss Tax Increment Financing Policy

          Chairman Jim Anderson requested that this item be addressed at a later meeting date and that no action be taken today.

V.      New Business

A.      Consideration to Scrappin Memories request for a $33,000 Loan

        Larry Remmen clarified the total project cost is $127,950.  The request is for $44,800 at 6% interest rate.  The bank will provide an $85,000 loan, for twenty years at 8.5%.  The bank’s equity requirements are personal guarantees, homes,  hunting land, personal CD’s and life insurance. Scrappin Memories would be a  retail store selling scrap booking, card making and stamping material.  Classes will be offered in theses areas, along with a retreat inn that would consist of overnight and weekend stays providing work space, tools and meals.  The location of the         facility is 419 Lake Avenue North.  The closest facility of this type is Menahga which is booked two years in advance. Chairman Jim Anderson expressed two concerns; one is the amount of hard equity going into the project from the owners where typically 20% of hard assets are the norm and how the Authority views financing a retail shop. Wendt informed the Authority that the retail portion would be only one third of the project with classes and retreats being the other two thirds. The Authority will discuss the project, and make a decision at the September 26^th meeting.

B.      Other

          None

VI.    Adjournment

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

                                                                Signed                                                              

                                                                Larry Remmen                                                                                                     Community Development Director