Committee Minutes

Minutes/Growth Fund Authority (JDA)
Monday, November 23, 2009 – 5:30 p.m.
The City Council of the City of Grand Forks sitting as the JDA (Growth Fund Authority) met in the Council Chambers in City Hall on Monday, November 23, 2009 at the hour of 5:30 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Bjerke, McNamara, Christensen, Kreun, Glassheim, Gershman, Bakken, Mayor Brown - 8; absent: None.
Approve Amendment 7 to EDA RLF Financial Assistance Award
Standard Terms and Conditions.

The staff report from the Urban Development Director relating to Amendment 7 to EDA RLF Financial Assistance Award Standard Terms and Conditions, with recommendation to approve.

It was moved by Council Member Mayor Brown and seconded by Council Member Bakken to approve Amendment 7 to the EDA RLF Financial Assistance Award Standard Terms and Conditions. Aye: Mayor Brown, McNamara, Glassheim, Gershman, Christensen, Bjerke – 8; Nay – None. Motion carried.
Approve Resolution for submission to Economic Development Administration

The staff report from the Urban Development Director relating to the Economic Development Administration Revolving Loan (EDA RLF) Semi-Annual Report, with recommendation to adopt a resolution for submission to the EDA.

Bjerke inquired if there is a plan in place to reduce the amount of excess funds on hand. Hoover responded that the change in the interest rate just passed in the previous motion will put it at just under 3% and will make us more competitive and will assist us in making future deals, as this is the source we will go to for those deals.

Bjerke inquired as to the sequestering of funds and where the interest goes and details on that. Hoover explained that if we don’t spend down to 75% of the funds we have available, the amount in excess, about $250,000 would need to be removed from our revolving loan account and put into a separate account that bank account then generates interest that goes back to the U.S. Treasury and then before we take any funds from the regular RLF account, we must use funds in the sequestered account.

It was moved by Council Member Bakken and seconded by Council Member Glassheim to approve the resolution. Aye: Mayor Brown, Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun, Bakken, - 8; Nay – None. Motion Carried.
Recess until following Committee of the Whole Meeting

It was moved by Council Member Bakken, and seconded by Mayor Brown to recess until the conclusion of the Committee of the Whole meeting. Aye: Mayor Brown, Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun, Bakken – 8; Nay: None. Motion Carried.
Reconvene JDA

President Gershman called the Growth Fund Authority (JDA) back into session.

Approve LM Glassfiber Equipment Lease Addendum and Extension.

The staff report from the Urban Development director relating to the matter of renewal of LM Glasfiber Leases and recommendation to approve the equipment lease addendum and extension included with this report.

Hoover reported that there are four leases with LM Glasfiber and one for discussion is a lease with the Economic Development Foundation which is subleased to LM Glassfiber to repay a $500,000 loan for air handling equipment and term expired in June and have agreed to continue the same terms for that lease and are looking for approval to renew the airhandling equipment lease now in open session and then during executive session will move into negotiation strategies for remaining leases.

It was moved by Mayor Brown and seconded by Council Member Kreun to approve the equipment lease addendum and extension as recommended in the staff report from Urban Development. Aye: Mayor Brown, Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun, Bakken – 8; Nay: None - 0. Motion Carried.
CONVENE IN EXECUTIVE SESSION

It was moved by Council Member Bakken and seconded by Mayor Brown that the Growth Fund Authority (JDA) to convene into executive session per North Dakota Century Code Section 44-04-19.1 and/or 44-04-19.2 for discussion on strategies and/or instructions regarding lease negotiations. Aye: Mayor Brown, Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun – 8. Nay – 0. Motion Carried.
RECONVENE IN OPEN SESSION

It was moved by Council Member Glassheim and seconded by Council Member Bakken that the Growth Fund Authority (JDA) reconvene in open session. Aye: Mayor Brown, Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun – 8; Nay – 0. Motion Carried.
ADJOURN

It was moved by Council Member Kreun and seconded by Mayor Brown to adjourn the meeting. Carried 8 votes affirmative. President Gershman declared the meeting adjourned.


Respectfully submitted,


Saroj Jerath
City Auditor