Committee Minutes

Minutes/Growth Fund Authority
April 3, 1995 - 7:00 p.m.

The city council of the City of Grand Forks sitting as the Growth Fund Authority of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, April 3, 1995 at the hour of 7;00 o'clock p.m. with the following members present: Council Members Beach, Hoeppner, Hamerlik, Carpenter, Sande, Babinchak, Johnson - 7; absent: McCabe, Hanson, Glassheim, Klave, Beyer - 5.

Howard Swanson, city attorney, stated this is the first meeting of this body acting under Ordinance No. 3497, adopted February 6, 1995 establishing the Jobs Development Authority (known as the Growth Fund), that body is comprised of the members of the city council, but does not include the mayor. He advised that they would need to undertake some organizational issues - to select a chair, a vice chair and a secretary and treasurer; that the secretary/treasurer can be either separate or combined position. He also advised that this body pass a motion asking the mayor to chair the meeting until such time as the chair or vice chair is seated.

It was moved by Hamerlik and Sande to authorize the mayor to act as temporary chair. Carried 7 votes affirmative.

Mayor Polovitz asked for nominations for chair of the Growth Fund Authority.

Member Hamerlik nominated Member Beach as chair, the motion was seconded by Member Hoeppner.

Member Beach stated that from a procedural standpoint it might make sense if the chairman of the Growth Fund Committee were the same person as the chairman of this Authority, and nominated Member Carpenter; and withdrew his name from consideration. The nomination was seconded by Member Hamerlik. Members Hamerlik and Hoeppner withdrew Mr. Beach's name from consideration.

It was moved by Members Sande and Hoeppner that nominations be closed and that a unanimous ballot be cast for Member Carpenter. Carried 7 votes affirmative.

CHAIRMAN CARPENTER PRESIDING

Chairman Carpenter opened the floor for nominations for vice chair.

Members Hamerlik and Babinchak nominated Member Beach as vice chair. It was moved by Members Hoeppner and Hamerlik that nominations cease and that a unanimous ballot be cast for Member Beach. Carried 7 votes affirmative.

Chairman Carpenter asked for nominations for secretary/treasurer.
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Members Beach and Sande nominated Member Glassheim as secretary/ treasurer. Members Babinchak and Johnson nominated Member Sande.

Nominations were closed and upon vote Member Glassheim received 2 votes and Members Sande received 5 votes.

Mr. Swanson advised that staff can be delegated to perform some of the duties of secretary/treasurer.

Mayor Polovitz asked that the mayor be included as part of the process and to attend meetings, and that this be referred to Committee No. 4 for consideration and amendment of the ordinance. Mr. Swanson advised that the Growth Fund Committee has no ability to determine its membership, but can come as recommendation from the Authority to council.

It was moved by Member Hamerlik and seconded by Member Hoeppner that we recommend to council that the mayor be an ex-officio member (a voting member) of the Growth Fund Authority. Carried 7 votes affirmative.

Mr. Swanson noted that there are some issues on creation and/or adoption of by-laws and issues of accounting but can defer to a later meeting.

HOLD PUBLIC HEARING ON APPLICATIONS FOR
GROWTH FUNDS

Chairman Carpenter called for the public hearing on the applica-tions:

a) D & D Manufacturing Services.
John O'Leary, Executive Director, Community Development reported that the applicant is a small manufacturing firm located in Grand Forks and owned by Dale and Douglas Bergman. He reported they are seeking financing to construct a 15x20' building at 1810 12th Avenue North and to purchase equipment to begin production of a conversion kit, which is designed to prolong the use of portable heater units used to pre-heat airplane motors in cold climates, total cost of the project is estimated at $140,000. The request from D & D Manufacturing Services is in the form of a P.A.C.E. interest buy-down in the amount of $7,000 on the $90,000 bank loan.

Mr. O'Leary, Community Development, spoke in support of the application, and that the Growth Fund Committee recommended unanimous approval of the application in the amount of $7,000.

It was moved by Member Babinchak and seconded by Member Sande that the application be approved. Carried 7 votes affirmative.

b) Larimore Economic Development Committee.
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Mr. O'Leary reported this project sponsored by the Larimore Economic Development Committee, that the City of Larimore is competing with two other entities and submitted a proposal for an ethanol plant; and that the amount of the request is $50,000, to be used as incentive for the co-op to locate in Larimore. He reported that the Growth Fund subcommittee didn't make motion because this is not traditional type of proposal, however, felt worthwhile project for consideration. He stated this project has the potential of generating a lot of private sector investment for an ethanol plant, if Larimore were chosen; that the City of Larimore has made a sizeable commitment to the project and that 160 acres of land has been contributed to the project.

HAGNESS AND GELLER REPORTED PRESENT

Committee No. 4, Urban Development, reported having considered the application by Larimore Economic Development Committee for Growth Fund monies for proposed ethanol plant, and recommended to approve $50,000 grant to the Larimore Economic Development Committee, contingent upon selection of Larimore as the site for the Clifco New Energy Cooperative plant.

It was moved by Council Member Hoeppner and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 9 votes affirmative.

Mr. Swanson advised that if the council acts favorably on council agenda item 7-4, there will be transferred to the Authority equity position in the North Dakota Small Business Investment Company, and for those documents there should be a motion accepting that transfer and authorizing Authority officials to sign the necessary documents.

It was moved by Beach and Babinchak to accept transfers and authorize Authority officials to sign the necessary documents. Carried 9 votes affirmative.

ADJOURN

It was moved by Member Hamerlik and seconded by Member Babinchak to adjourn. Carried 9 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor