Committee Minutes

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

June 15, 2010

1. Roll Call

Present: Eliot Glassheim, Dwight Thompson, Terry Smith and Doug Christensen. Also present: Greg Hoover, Meredith Richards, Klaus Thiessen, Keith Lund, and Melanie Richardson. Absent: Mike McNamara.

2. Approval of Minutes – May 18, 2010: Motion by Eliot Glassheim, second by Dwight Thompson to approve minutes from the previous meeting. All present voted aye. MOTION CARRIED.

3. Other Business: None

4. Project Update:

Cirrus – Greg stated that we have received all five of Cirrus’ quarterly payments, approximately $52,000, and six lease payments totaling $507,000 this year. They are still eleven months behind ($929,500). We did receive our first payment from the jobs program in the amount of $130,616. Greg added that he, Rick Duquette, Keith and Klaus met with Bill King (Cirrus’ Vice President of Finance) to discuss how Cirrus plans to become current on its loans. Keith and Greg also met with officials at Bremer Bank to discuss the possibility of restructuring the Cirrus loans. They are willing to consider this but will need more information regarding Cirrus’ financials and JDA cash flow before making any decisions.

A meeting will be scheduled with the Growth Fund Committee to allow Cirrus to present their proposal. Doug stated that more information regarding financials and our strategies will need to be discussed by this Committee prior to meeting with Cirrus representatives. Tentative meeting dates were set for July 13 for the Growth Fund Committee strategy session and July 27 to meet with Cirrus.

LM Glasfiber – Greg reported that LM will purchase the original building at 1580 S. 48th Street for the outstanding balances on the Industrial Revenue Bond, EDA RLF loan and CDBG loan, which total approximately $2,300,000, as well as pay Wells Fargo the balance of the BND loan, which was $1,200,000 as of July 1, 2010. They will also provide the JDA the right to repurchase the building for the 2010 sales price should LM discontinue operations in Grand Forks prior to November 1, 2014. In addition, they have renewed the lease on the Amazon building for a five-year term with a 25% reduction in rent payments effective August 1, 2009.

5. Adjournment: Meeting adjourned at approximately 4:48 p.m.



_____________________________ _____________________________
Melanie R. Richardson Doug Christensen
Office of Urban Development Chairman