Committee Minutes
MINUTES
Growth Fund Committee Meeting
Office of Urban Development Conference Room
1405 First Avenue North
Grand Forks, ND 58203
August 17, 2010
1. Roll Call
Present: Doug Christensen, Eliot Glassheim, and Dana Sande. Also present: Greg Hoover, Meredith Richards, Tina Hoffart, Hal Gershman, Keith Lund, and Melanie Richardson. Absent: Terry Smith and Dwight Thompson.
2. Approval of Minutes – June 15, 2010: Motion by Eliot Glassheim, second by Dana Sande to approve minutes from the previous meeting. All present voted aye. MOTION CARRIED.
3. Other Business:
a. 2009 Annual Report
: Received and filed. Hal questions the past due loan accounts. Greg gives an update on the two outstanding Aatrix loans stating that these loans are in the process of being restructured and once the new agreement is signed, the loan will be up to date. Meredith addresses the outstanding balances on the Northern Valley Growers loan and the Master Potato loan. In reviewing the Northern Valley Growers loan, the City Attorney determined that the legal fees involved in trying to recapture the loan would exceed the amount that is still owed. Master Potato has changed hands numerous times and has been through bankruptcy proceedings making it impossible to collect this loan.
The City Attorney has recommended that both of these loans be excused and written off to clear our records. Eliot has requested that the recommendations be submitted to the Committee in writing to allow further action to be taken on this matter. Doug has requested the files for both of these outstanding loans so that he can review them further. Meredith provided the Northern Valley Growers file at the meeting and will locate the Master Potato file to be delivered to Doug’s office before the next meeting.
The Committee has agreed to review the current loan policy before the next meeting to determine if we need to require personal guarantees on all of the future loans issued though the Growth Fund.
Motion by Eliot Glassheim, second by Dana Sande, to approve the 2009 Annual Report. All present voted aye. MOTION CARRIED.
b. Budget Review
: Tina and Greg have been working with the Finance Department downtown to ensure that all of the numbers reconciled prior to presenting the budget to the Committee. There have been no significant changes to the original budget on debt service for the expansion projects. Also, there have been no additional changes on the Corporate Center or Cirrus bonds. The EDA and the JDA still have funds available to lend if needed.
Tina handed out information on the 2011 budget and states that the numbers presented match what is already in the Mayor’s budget at City Hall. There are significant reductions in revenue and expenses due to the LM Glasfiber sale. The personnel and operating expenses have remained the same as in the 2010 budget. There is nothing extraordinary in the 2011 budget expenses, but Tina wanted to point out that we will be using deal money again to fund capital improvements.
Discussion ensues to determine how we are going to ensure that we will continue to have money for the EDC to use in the future. Doug is suggesting a transfer of monies from Enterprise Funds, within the parameters of the 20%, to build capital for future deals. Keith states that he, Klaus, and Greg will be meeting to discuss different options for acquiring additional funds to allow for more options in the future. Dana suggests that the Committee set a goal of how much money they would like to have available for deals, which would allow them to determine how to go about reaching that goal.
4. Project Update:
None.
5. Adjournment:
Meeting adjourned at approximately 5:20 p.m.
_____________________________ _____________________________
Melanie R. Richardson Doug Christensen
Office of Urban Development Chairman