Minutes

Of The

Regular Meeting Of

DETROIT LAKES DEVELOPMENT AUTHORITY

Tuesday, May 23, 2006

4:30 PM

Conference Room

City Administration Building

MEMBERS PRESENT:       Jim Anderson, Dixie Johnson, Matt Brenk, Tom Klyve, and  Mark Hagen

MEMBERS ABSENT:          Tim Olson & Greg Hildenbrand

OTHERS PRESENT:           Larry Remmen, Community Development Director, Richard Grabow,                                     Nancy Wichmann, Pippi Mayfield, Don Schattschneider

  I.        CALL TO ORDER:

            Chairman Jim Anderson 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, May 23rd, 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 Dixie Johnson seconded by Commissioner Matt Brenk and carried unanimously to approve the minutes of the regular meeting held May 9th, 2006.

III.        FINANCIALS

A.        A motion was made by Commissioner Mark Hagen, seconded by Commissioner Dixie Johnson and carried unanimously to approve the financial report and payment of claims for the period ending April 2006.

IV.       OLD BUSINESS

A.        None

 V.       NEW BUSINESS

A.        Consideration to the loan request of the American Legion Club

            Larry Remmen reported the American Legion is requesting a $70,000 loan from the DLDA to provide a 27 site expansion to the American Legion Campground, a City owned property    leased by the American Legion Club.  Total project cost is $90,000.  Certificates of deposit secure the loan in the amount of $46,000. A motion was made Commissioner Tom Klyve, seconded by Commissioner Dixie Johnson and carried unanimously to approve the loan     request of $70,000 to the American Legion Club, at 6% interest rate for 5 years.

B.        Discuss IRP seminar for accountants, bankers & attorneys

            The Authority discussed last month’s new business referencing the request for additional IRP  advertising.  Larry Remmen reported letters have been sent to all local lending institutions, and a cover letter with a color ad will be sent to all accountants, bankers and attorneys. The Authority discussed whether a noon luncheon presentation would be necessary. It was unanimously agreed to leave this consideration on the agenda under old business, and  possibly coordinate a noon meeting covering IRP availability as well as JOBZ, planning and tax increment financing information in late Summer or early Fall.

C.        Consideration to the request for TIF, Bob Bristlin & Sons Construction

            Bob Bristlin is requesting $200,000 in tax increment financing to construct a 25,000 square foot spec building in the Detroit Lakes North Industrial Park, or construction of a 12,000 square foot building to house his construction business.  A tax increment fact sheet was circulated.  Nine years is the longest an economic development district can run, and the maximum tax  increment financing allowed would be $65,000.  The Authority discussed the request and will           table this request requiring more specifics to this consideration.

D.        Consideration to a request for a loan (Bob Bristlin & Sons Construction)

            Bob Bristlin is requesting a loan of $200,000 to construct a 25,000 square foot spec building in the Detroit Lakes North Industrial Park or construction of a 12,000 square foot building to house his construction business.    Based on the request a $40,000 loan would be in line with the criteria set by the Development Authority.  The Authority unanimously agreed to table this request requiring more specific information to this consideration, and further discuss the            Authority’s criteria for loans being made.

E.        Other

 VI.      Adjournment

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

                                                                                                Signed

                                                                                                Larry Remmen

                                                                                                Community Development Director

LR:nw