Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Thursday, September 29, 2005

4:30 PM

Conference Room

 City Administration Building

MEMBERS PRESENT:     Dixie Johnson, Matt Brenk, Tim Olson, Greg Hildenbrand, Mark                                   Hagen, Tom Klyve

MEMBERS ABSENT:      Jim Anderson

OTHERS PRESENT:       Larry Remmen, Nancy Wichmann, Richard Grabow, Jim Hannon,

                                Bruce Imholte, GL Tucker, Pippi Mayfield

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 Thursday, September 29, 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 Tom Klyve, seconded by Commissioner Tim Olson and carried unanimously to approve the minutes of the regular  meeting held September 13, 2005 as presented.

III.    Financials:

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

IV.    Old Business:

A.      None

V.      New Business:

A.      Consideration to a Business Review Publication (Dennis Winskowski) deferred

B.      Discuss purchase of land from Don Lefebvre near Willow Springs with the Community Development Committee

          The Authority reviewed the map of the City boundaries and the property Don Lefebvre is willing to sell to the City near Willow Springs. Larry Remmen reported the only intervening  space between Lefebvre’s property and the City boundary is public road right of way, which the State says is contiguous.  This would allow the City to annex this area by ordinance and would abut up to the Ray J. Anderson property. Once that area was annexed the City could start the progression of         annexation of the Ray J. Anderson property by ordinance as well. 

        The other option of annexing this area would be to acquire the Koenig property on Richwood Road.  This property is for sale at a price approximately ten times higher than the Lefebvre property.

        The final option is to start discussion with the Detroit Township about whether or not to annex the entire area.  Previous township annexation issues for Long Lake were rather lengthy in time, as well as involving the City Attorney which adds cost.  

        The Authority discussed the following:

·        Lefebvre property contains 32 acres of wetlands and utilities would have to come up Highway 59.

·        There are only four lots left in the North Industrial Park

·        The Cleveland property is not developed yet, but would contain 24 lots;

Commissioner Matt Brenk felt the Lefebvre property would be a good investment.  Larry Remmen reported that at first, Don Lefebvre was asking $40,000 for the property, then was willing to sell for $30,000.  Last week Larry Remmen reported he received a call from Don Lefebvre, stating he was not certain whether or not he was willing to sell the land.

A motion was made by Commissioner Tom Klyve, seconded by Commissioner Matt Brenk and carried unanimously to offer Don Lefebvre $30,000 for the land in question. 

C.      CONSIDERAITON TO THE SALE OF LOT 10 BLOCK 1 CURT BRIGGS AND REQUEST FOR RIGHT OF FIRST REFUSAL

          Larry Remmen reported that Lot 10, Block 1 of the North Industrial Park is one of the last four the Authority has available for sale.  The Authority has been discussing the construction of a building for Marine Innovations.  Larry Remmen indicated to Curt Briggs that the Authority had plans for the lot and it is not available.  Briggs requested a right of first refusal for the lot.  Larry Remmen will contact Marine Innovations with reference to the status of their project  A motion was made by Commissioner Mark Hagen, seconded by Commissioner Tim Olson and carried unanimously to deny the request of Curt Briggs noting that the Authority would like to provide lots to businesses with a purpose; creating jobs and employment opportunities to the City.

D.      CONSIDERAITON TO THE SALE OF WETLANDS TO LINDA LIVINGSTON

        Larry Remmen reported Linda Livingston is requesting to purchase 3.4 acres of wetlands from the City for $1,000, plus surveying or abstract costs involved.  This property is located directly north of the property she is intending to purchase.  A motion was made by Commissioner Matt Brenk, seconded by Commissioner Tim Olson and carried unanimously to accept the $1,000 offer for the wetlands, and close on both properties in March.

E.      OTHER

          Larry Remmen received a letter from the Housing & Redevelopment Authority of Detroit Lakes requesting consideration for a low interest loan to assist the HRA in the financing of the High School Trades’ Building Program house.  At the present time, they are using the local banks for the construction loans over an 18 month period.  In order to get the house ready for sale, they are paying about $6,000 to $8,000 in interest charges at a rate of 5.5%; resulting in a higher cost for the home.  The goal of the HRA is to provide home ownership to lower income people, or first time home buyers.  They are requesting an interest rate of 2% or more which would lower the cost of the loan $2,000 to $4,000 on a $127,000 loan.  A motion was made by Commissioner Tom Klyve seconded by Commissioner Tim Olson and carried unanimously to approve a loan to the Becker County HRA for maximum of $127,000 at 4% over an 18 month period.

VI.    Adjournment

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

       Signed     

                        LarryRemmen                                                                                                                     Community Development Director