Committee Minutes

Minutes of Grand Forks City Council/Growth Fund
Authority (JDA) - Monday, June 22, 2009 - 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 22, 2009 at the hour of 5:30 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Bjerke, McNamara, Christensen, Kreun, Mayor Brown, Gershman - 6; absent: Council Members Glassheim, Bakken - 2

HOLD PUBLIC HEARING AND APPROVE PACE LOAN
FOR IDEAL AEROSMITH, INC.

The staff report from the director of urban development relating to matter of public hearing on Growth Fund application from Ideal Aerosmith, Inc., with recommendation to hold public hearing on the requested funding and approve a PACE loan of $134,615 to Ideal Aerosmith, Inc.

Keith Lund, Grand Forks Region Economic Development Corporation, reported that Ideal Aerosmith, Inc., regional manufacturer of motion and aircraft test equipment for the aerospace, defense and petroleum industries, 118 employee company headquartered in East Grand Forks with operations in Arizona, Pennsylvania and California. Due to recent strong growth and anticipated future growth their facilities are not adequate to meet the needs and have identified the facility as 3001 South Washington Street, Grand Forks (former Floor to Ceiling Store), the project involves the acquisition and renovation of that facilities at $2.2 million project, financed through a commercial real estate loan and they are seeking a Partnership in Assisting Community Expansion (PACE) Program loan from the Grand Forks Growth Fund in the amount of $134,615 that will leverage a PACE grant from the Bank of North Dakota in the amount of $250,000, proceeds will be used to reduce interest rate on their commercial loan at 5 percentage points. Specific terms are summarized in the staff report; this will also allow growth of the company in both locations. Expected employment growth is 10 per year for the next 2 years at the new location, average salary is $42,000/year and benefit package includes 70% group health insurance, 401K program, 100% match of the first 3% and 50% of the next 3% of the employee contribution, 2 to 4 weeks vacation depending on length of employment, group life insurance and flex benefit plan for health care and dependent care.

Chairman Gershman opened the public hearing, there were no comments, and the public hearing was closed. He noted that the Economic Development Corp. now requests reporting of exact benefits.

It was moved by Mayor Brown and seconded by Council Member Christensen to approve the recommendation. Carried 5 votes affirmative, Council Member Bjerke voting against the motion.

ADJOURN

It was moved by Council Member Kreun and seconded by Mayor Brown that we adjourn. Carried 6 votes affirmative.

Respectfully submitted,


Saroj Jerath, City Auditor

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