Minutes

of the

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, October 25, 2005

4:30 PM

Conference Room

 City Administration Building

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

MEMBERS ABSENT:      Jim Anderson and Greg Hildenbrand

OTHERS PRESENT:       Larry Remmen, Pippi Mayfield and representatives of the Becker                                 County Humane Society       

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, October 26, 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 29, 2005 as presented.

III.    Financials:

A.      None

IV.    Old Business:

A.      CONSIDERATION TO COUNTER PROPOSALS FROM DON LEFEBVRE

        Larry Remmen stated that the Authority had offered Don Lefebvre $30,000 for 31.73 acres of land including about 2 acres of high ground.  Don presented a counter proposal, with two options:

• Option One was 40.93 acres for $50,000
• Option Two was 35.73 acres for $35,000

        Larry Remmen stated that if our objective was the annexation of this area, at the lowest cost we should go with Option Two.  However, if we felt the high ground had value and could be sold to offset some costs, we should consider Option One. The sale of the two acres of high ground involves platting costs, wetland issues and construction of a driveway through a wetland.  The amount of money required to get the lot ready for sale, may make it less valuable in recovering any costs.

        The Board discussed the matter and it was pointed out that the 2 acres of high ground was not located next to the road so we would need to construct a driveway and obtain permission to build it in a wetland.  Tim Olson inquired if we could annex this area without purchasing the land?  Larry Remmen explained that the annexation process is lengthy and costly.  Also, there is no guarantee that such an annexation would be approved.  Petitions by 100% of the land owners can be done by City Council Ordinance.

        A motion was made by Commissioner Matt Brenk, seconded by Commissioner Tim Olson, and carried unanimously to purchase the 35.73 acres from Don Lefebvre and to request that the City Council pay half of the $35,000 price and also agree not to annex Deerwood Park prior to January 1, 2015.

V.      New Business

A.      CONSIDERATION TO THE REQUEST OF THE BECKER COUNTY HUMANE SOCIETY

        Larry Remmen reported that the Humane Society was requesting an exchange of  the lot which the Development Authority gave them for a lot in the North Industrial Park.  He then introduced Steve Anderson, President of the Humane Society to explain the request.

        Steve Anderson stated that fund raising has moved along quickly and the Humane         Society is trying to get a $30,000 USDA Grant.  In order to obtain this grant, the Society needs to have a deed for the property where they will build.  He also stated that the potential for $40,000 worth of special assessments against the Ray J. Anderson lot which the DLDA gave the Humane Society makes the lot worthless to them.

        Tom Klyve stated he was not in favor of gifting a lot in the North Industrial Park to  the Humane Society because there are very few lots remaining.  Also, we have had offers on this land and we need to be good stewards of public property.

        Mark Hagen felt that if the lot that Linda Livingston was buying could be split that would work the best because we wouldn’t tie up an entire lot with a non-profit entity.

        Steve Anderson said he was interested in finding a useable lot quickly.  He also said the Humane Society can not accept the lot on the former Ray J. Anderson property because the amount of specials to be placed against it are so expensive.

        Steve stated that the Humane Society would like to buy part of Linda’s lot but he was told that subdividing the lot was unlikely.  Members of the Board said it should be given strong consideration and they were favorable with such a plan.   

          Commissioner Matt Brenk said the idea of giving the Ray J. Anderson lot is different than giving a lot in the Industrial Park.  They are two different things.The Humane Society has no job creation, and generates no taxes, while for profit companies do create jobs and pay taxes.

        The consensus of the Development Authority was for the Humane Society to work with Linda Livingston to split Lot six to provide one lot for Linda’s business and one lot for the Humane Society. 

B.      CONSIDERAITON TO BUDGETING $4,000 FOR THE OFFICE ASSISTANCE FOR ONE YEAR

          Larry Remmen reported that Kathy Lormis was currently providing part time secretarial help to the Community Development Department.  Her assistance has been valuable and we could use some additional office help to keep up with all of the work.  She has been cut back in Public Utilities and will have additional time to work in the Community Development Office.  Matt Brenk agreed we have grown over the years and the work needs to get done. 

        A motion was made by Commissioner Tom Klyve seconded by Commissioner Mark Hagen and carried without dissent to approve budgeting $4,000 for an office assistant for one year. 

C.      CONSIDERATION TO A THREE YEAR EXTENSION TO THE WASHINGTON SQUARE MALL LOAN

          Larry Remmen reported that the Washington Square Mall Loan was due on September 5, 2005 and they have requested a three year extension.  The Development Authority discussed the request briefly.  A motion was made by Commissioner Mark Hagen, seconded by Commissioner Tim Olson and carried  unanimously to approve a three year extension of the Washington Square Mall         Loan. 

        It was noted by the Board that the balloon would be due in three years and no additional extension will be granted. 

D.      INFORMATION:  LETTER FROM ARLEN KANGAS, MMCDC, RELATIVE TO THE QZAB DEBT SERVICE ACCOUNT

        Larry Remmen stated that a letter from Arlen Kangas relative to the QZAB Debt Service Account was enclosed in their packet. 

        Larry Remmen said the reason it was sent out in the agenda packet was so the Authority would be informed that there is a shortage in the QZAB Debt Service Account of $221,400. When we look at the end of the year we will need to deal with this and determine how HCI can provide funds to correct the shortage.

        There was a question regarding when the review was to take place.  There also was a question regarding when the five year management contract expired.

E.      INFORMATION:  FINANCIALS FROM WCI FOR THE DETROIT LAKES LOAN FUND

        There were no questions regarding this report. 

VI.    Adjournment

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

Signed                                                              

                                                                LarryRemmen                                                                                                                        Community Development Director