Committee Minutes

MINUTES/GROWTH FUND AUTHORITY(JDA)
Monday, October 2, 2000 - 7:15 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, October 2, 2000 at the hour of 7:15 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Brooks, Bjerke, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Babinchak, Bakken, Kreun, Brown - 13; absent: Council Members Martinson - 1.

WAIVE PUBLIC HEARING NOTICE REQUIREMENT

Chairman Gershman stated that the Growth Fund Authority met this past Thursday, would like to have a waiver of the public hearing notification requirement, that the City did publish two ads in the Grand Forks Herald rather than in the public notice section, and asked for a motion. It was noted that this will meet the legal requirements.

Council Member Lunak moved to waive the public hearing notification requirement; Council Member Brooks seconded the motion. Carried 13 votes affirmative.

COUNCIL MEMBER HOFF REPORTED PRESENT

HOLD PUBLIC HEARING ON APPLICATION FOR
FUNDS FROM ANCEPT, INC.

Chairman Gershman called for the public hearing on the application by Ancept, Inc. for funds - for a loan of $150,000 at 4% interest with payment deferred until after a community loan is paid off. There were no comments, and the public hearing was closed.

It was moved by Council Member Lunak and seconded by Council Member Burke to recommend the following financial assistance package: That the Grand Forks Growth Fund, a JDA, issue two loans to Ancept, Inc.: Loan A in the amount of $200,000 coming from the EDA RLF, at the lowest interest rate authorized by the program (4 points below prime but not less than 4 ½% per annum) with a term of 7 years. This loan will have payments deferred until May 1, 2002, at which time the balance will be amortized over the following 66 months with a maturity date of November 1, 2007. Loan B in the amount of $64,710.00 will be advanced to Ancept at a rate of $3,595 per month as required to make the initial 18 payments of principal and interest on Loan A. Loan B will accrue at the same interest rate as Loan A, with no payment on principal or interest due until November 1, 2007, at which time the same monthly payment that is required for Loan A will continue until all debt is retired. Both loans will be secured by personal guaranties from the principals as well as security interest in any furniture, fixtures and equipment. The JDA further agrees to subordinate to a US Bank loan, with any further subordination requiring the approval of the JDA. Upon roll call the following voted “aye”: Council Members Brooks, Hoff, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Babinchak, Bakken, Kreun, Brown - 13; voting “nay”: Council Member Bjerke - 1.

MINUTES/GROWTH FUND AUTHORITY
October 2, 2000 - Page 2_________________


ADJOURN

It was moved by Council Member Hamerlik and seconded by Council Member Kreun that we do now adjourn. Carried 14 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor