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MINUTES
Growth Fund Committee Meeting
Office of Urban Development Conference Room
1405 First Avenue North
Grand Forks, ND 58203

April 20, 2010

1. Roll Call

Present: Eliot Glassheim, Terry Smith, Dwight Thompson and Doug Christensen. Also present: Greg Hoover, Meredith Richards, Klaus Theissen, Keith Lund, Judith Stevens, Gerald Muizelaar, John Moen, Tim Pribula and Melanie Richardson. Absent: Mike McNamara

2. Approval of Minutes – March 16, 2010: Motion by Dwight Thompson, second by Terry Smith to approve minutes from previous meeting on March 16, 2010. All present voted aye. MOTION CARRIED.

3. Other Business: EDA RLF Applications

a. LM Glasfiber: Keith states that Gerald Muizelaar is representing LM Glasfiber at this meeting. The proposed loan is for $500,000 with straight amortization for 84 months. The funds will be used for the purchase of equipment to be installed at 1580 South 48th Street. The collateral on the loan will be first position on the equipment that is to be installed in these facilities.

Motion by Dwight Thompson, second by Terry Smith to approve the LM Glasfiber loan application. All present voted aye. MOTION CARRIED.

b. Ideal Aerosmith, Inc.: Keith states that John Moen is representing Ideal Aerosmith, Inc. at this meeting. The proposed loan is for $408,000 with 7-year amortization. The funds will be used for permanent financing of the acquisition and renovation of their new facility at 3001 S. Washington. Collateral will be a subordinate position on the real estate as well as the equipment and furnishings. In addition, it has been agreed that the two principals of the company, Greg Owens and Robyn Owens, who hold more than 20% interest in the company, will provide personal guarantees on the project as well.

Dwight wants to state for the record that Mr. Moen serves on the Audit and Investment Committee for which he is responsible but does not believe that presents a conflict of interest in this particular case.

Motion by Dwight Thompson, second by Terry Smith to approve the Ideal Aerosmith, Inc. loan application. All present voted aye. MOTION CARRIED.

c. American Defense Industries: Keith states that Tim Pribula is representing American Defense Industries at this meeting. The project consists of two loans: a $157,500 real estate loan to Pribula Estates, LLC, with a 15-year amortization with a balloon payment after 10 years; an equipment loan to American Defense Industries for $63,000 with an 84 month straight amortization. The funds will be used to build an addition to the facility and purchase equipment to accommodate the growth within this company. Collateral will be subordinate position on the real estate, first position on the equipment that’s purchased and a personal guarantee from Tim Pribula as the principal of the company.

Motion by Terry Smith, second by Dwight Thompson to approve the American Defense Industries loan application. All present voted aye. MOTION CARRIED.

4. Project Update: Hood Packaging Project – While the company is very supportive of the project, corporate states that they will not be able to move forward at this time. The project will be put on hold as there is an indication that it may be something to look at again for next year.

LM Glasfiber Lease: The local team has reviewed and analyzed the lease proposal that was discussed in the previous Growth Fund Committee meeting and they are supportive of the offer. However all of the decisions will be made at the corporate level, and they have yet to respond. Hopefully Keith will have something to report at the next meeting.

5. Adjournment: Meeting adjourned at approximately 4:38 pm



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Melanie R. Richardson Doug Christensen