Committee Minutes

MINUTES/GROWTH FUND AUTHORITY
Monday, September 15, 1997 - (following 9/15/97 council meeting)

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, September 15, 1997 following the council meeting with Chairman Carpenter presiding. Present at roll call were Council Members Beach, Polovitz, Hamerlik, Glassheim, Sande, Klave, Beyer, Babinchak, Hafner, Hagness, Owens, Carpenter - 12; absent: Council Member Bakken - 1.

CONSIDER APPLICATION FOR FUNDING BY
BALTIC, LLP (LOLA'S), 124 NORTH 3RD STREET

a) Baltic, LLP (Lola's), 124 North 3rd Street.

The city auditor reported that the reason this is brought to the Authority is that a little over a year ago the City had made a commitment to do a tax increment financing for Lola'; while in the light of the flood and discussion, it was decided it was not a wise move to sell bond issue on a building that may be taken for the dike, and in visiting with Mr. Swanson they came to the solution that subject to the City approving the tax exemption for Lola's the Jobs Development Authority would then do a loan agreement with them out of the Economic Development Funds in the amount of $110,000 at 6.5% interest, to be paid back in an 11-year term, but need to have Growth Fund Authority approve that agreement so it can be completed.

It was moved by Council Member Polovitz and seconded by Council Member Hamerlik to so approve the motion.

Mr. Swanson reported that this is a deviation from normal policies; however, necessitated under the circumstances of prior commitment the city council had made to the bond sales and the resulting change in circumstances as a result of the flood.

Upon call for the question of adoption of the motion and upon roll call, the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Sande, Klave, Beyer, Babinchak, Hafner, Hagness, Owens, Carpenter - 12; voting "nay": none. Chairman Carpenter declared the motion carried.

ADJOURN

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

Respectfully submitted,



John M. Schmisek
City Auditor