Committee Minutes

MINUTES/GROWTH FUND AUTHORITY
Monday, May 5, 1997 - 5:00 p.m.

The city council of the City of Grand Forks sitting as the Growth Fund Authority met at the Chester Fritz Auditorium at the University of North Dakota on Monday, May 5, 1997 at the hour of 5:00 p.m. with chairman Carpenter presiding. Present at roll call were Council Members Beach, Polovitz, Ellingson, Hamerlik, Hanson, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness, Owens - 14; absent: Council Member Glassheim - 1.

a) Northern Valley Growers, Grafton, ND

The city auditor read the recommendation from the Growth Fund Sub-committee to recommend participation in a PACE interest buydown in the amount of $10,000, that this assistance would be in the form of a no-interest loan to be repaid in a lump sum within six months of the date of final payment of the PACE loan.

It was moved by Council Member Hanson and seconded by Council Member Polovitz that this recommendation be and is hereby approved.

Chairman Carpenter called for the public hearing on the application and asked for comments.

Council Member Beach reported that he had voted against the recommendation in committee, that Northern Valley Growers is the restructuring of a potato wash plant in Hoople, ND; that what they were doing was not that new and did compete with several existing businesses in the Red River Valley; that part of their application was based on the fact that they are getting a computer operated potato sizer, which they claimed would be new and unique in the Valley, that on checking he found there was one in Buxton, ND and one in East Grand Forks, MN and felt they setting bad precedent by granting money to a firm which is competing with other existing firms that are doing the same thing. Chairman Carpenter reported the application had support from number of adjacent communities and entities, and was presented as buy-out of old plant with significant expansion and creation of jobs for the community which does a significant amount of their shopping in Grand Forks and the major contractor on the project is a local contractor and committee felt it was worthwhile to do.

Council Member Hanson spoke in support of the application and that the Growth Fund should not only support local business but support on a regional basis.

After further discussion Chairman Carpenter closed the public hearing.

Upon call for the question and upon roll call vote the following voted "aye": Council Members Beach, Polovitz, Ellingson, Hamerlik, Hanson, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness, Owens, Carpenter - 14; voting "nay": none. Chairman Carpenter
MINUTES/GROWTH FUND AUTHORITY
May 5, 1997 - Page 2

declared the motion carried.

ADJOURN

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

Respectfully submitted,



John M. Schmisek
City Auditor