Committee Minutes

MINUTES/GROWTH FUND AUTHORITY (JDA)
Monday, August 7, 2000 - 7:00 p.m._

The city council of the city of Grand Forks sitting as the Growth Fund Authority met at the council chambers at City Hall on Monday, August 7, 2000 at the hour of 7:00 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Brooks, Bjerke, Hoff, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Bakken, Kreun, Martinson - 12; absent: Council Members Klave, Babinchak, Mayor Brown - 3.

HOLD PUBLIC HEARING, APPROVE APPLICATION FOR
LOAN BY MERIDIAN ENVIRONMENTAL TECHNOLOGY, INC.

Chairman Gershman called for the public hearing on the application by Meridian Environmental Technology, Inc. for funding.

The city auditor read the recommendation from the committee to recommend approval of a $300,000 loan subject to EDA requirements (with the following terms and conditions:
1) interest will be at 5.5% or the minimum rate allowed by the Economic Development Administration (EDA) at the time of closing;
2) loan will be amortized over the maximum period allowed for EDA operating loans;
3) interest will begin accruing at the time of disbursement;
4) interest payments will be deferred until 2001;
5) principal payments will be deferred until 2002;
6) the Growth Fund will take a security position second to the bank and obtain personal guaranties to secure the loan;
7) Meridian will make a good faith effort to relocate from the Rural Technology Center to a private sector building by July 1, 2001.

There were no comments from the audience or the city council, and the public hearing was closed.

It was moved by Council Member Burke and seconded by Council Member Christensen to approve a $300,000 loan subject to EDA requirements. Upon roll call the following voted “aye”: Council Members Brooks, Hoff, Hamerlik, Burke, Glassheim, Gershman, Lunak, Bakken, Kreun, Martinson - 11; voting “nay”: Council Member Bjerke - 1. Chairman Gershman declared the motion carried.

ADJOURN

It was moved by Council Member Hamerlik and seconded by Council Member Lunak that we do now adjourn. Carried 12 votes affirmative.

Respectfully submitted,




John M. Schmisek
City Auditor