City of Grand Forks, North Dakota

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	Minutes of Grand Forks City Council/Growth Fund Authority (JDA) - Monday, June 7, 2010 - 5:30 p.m.____ The city council of the city of Grand Forks sitting as the Growth Fund Authority met in the council chambers in City Hall on Monday, June 7, 2010 at the hour of 5:30 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Bjerke, McNamara, Gershman, Christensen (teleconference), Bakken, Kreun, Mayor Brown - 7; absent: Council Member Glassheim - 1. APPROVE APPLICATION FOR PACE LOAN FOR COUNTRYWIDE SANITATION COMPANY The staff report from Urban Development Director relating to Countrywide Sanitation Company application for PACE loan, with recommendation from EDC recommending forwarding the application to the Growth Fund for approval, and recommendation from the Growth Fund Committee to concur with EDC Board recommended action. Keith Lund, Grand Forks Region Economic Development Corporation, presented information relative to the application for Countrywide Sanitation Company, which is a young company that offers roll-offs and sanitation refuse services to local companies, their facility is located at 1725 North 73rd Street, customer request is to expand to offer cardboard recycling services to area businesses and their company will contact various businesses to collect cardboard rather than disposing in the Grand Forks landfill. The project involves 6400 sq.ft. expansion of their existing facility for acquisition of a conveyer/baler system and skid steer, total project cost is $322,000 and will create 3 jobs. The equipment that they are acquiring will have the ability to recycle other materials, i.e., paper, plastics and newspaper and further growth is anticipated in this area. Countrywide Sanitation is requesting two PACE loans to support the expansion, first one would be Countrywide Lenders which is the real estate holding company of Countrywide Sanitation, and requesting a $22,078 PACE loan, and combined with a $31,000 PACE grant from the Bank of North Dakota and will be used to reduce the interest rate on the Choice Financial loan of $227,000 for the building expansion; loan deferred for 10 years and will be paid in full in 12 months after that deferral period, loan will be collateralized by the subordinate real estate mortgage and personal guarantees with the three principals. The second PACE loan they are requesting is $4,815 from Countywide Sanitation, which will leverage $9900 PACE grant from the Bank of North Dakota, and will be used to reduce the interest rate on the Choice Financial loan, that loan for equipment will be deferred for 7 years and will be repaid in 12 equal installments after the deferral period. Collateral for this loan is the subordinate UCC filing and also personal guarantees from the three principals. It was moved by Council Member Christensen to approve the application, seconded by Mayor Brown. It was noted that this action requires a public hearing, but Mr. Lund stated that their office had not published the public hearing. Howard Swanson, city attorney, questioned that other than the agenda being published, if any notice of public hearing had been given. The answer to that was no, according to Mr. Hoover. Mr. Swanson reported that according to the Growth Fund there are codes specifically Section 24-0111 which states that notice must be given 3 days prior to the date of the public hearing, giving the date, time and purpose of the hearing, that can be waived upon a finding of exigent circumstances if two-thirds of members vote to waive the publication. He also stated that since no notice was published, but if you find that either the agenda is sufficient or that there is reason to move forward, you have the authority to waive any publication requirements. It was moved by Council Member Bakken and seconded by Council Member Kreun to waive the requirements for publication. Upon call to waive the publication requirements, the motion carried 6 votes affirmative; Council Member Bjerke voted against the motion. Upon call for the question on the original motion and upon voice vote, the motion carried 6 votes affirmative; Council Member Bjerke voted against the motion. ADJOURN It was moved by Council Member Bakken and seconded by Council Member Kreun to adjourn. Carried 7 votes affirmative. Respectfully submitted, Maureen Storstad for Saroj Jerath, City Auditor