Committee Minutes
MINUTES/GROWTH FUND AUTHORITY
Monday, December 1, 1997 - 6:30 p.m.
The city council of the city of rand Forks sitting as the Growth Fund Authority met in the council chambers in City Hall on Monday, December 1, 1997 at the hour of 6:30 p.m. with Chairman Carpenter presiding. Present at roll call were Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Babinchak, Bakken, Hafner, Hagness, Owens - 13; absent: Council Members Beyer, Klave - 2.
HOLD PUBLIC HEARING AND CONSIDERATION
OF APPLICATIONS FOR FUNDING AND LOAN
RESTRUCTURING, PROMARK ONE MARKETING
SERVICE, INC.
Chairman Carpenter reported that this is an application that was approved a number of years ago, that the agreement was not signed and they had a transfer of ownership and agreement has now been signed by them and has come back to the Authority to see if Authority should sign it and how to determine 1997 allocation.
Chairman Carpenter opened the public hearing and asked for comments. There were no comments and the hearing was closed.
The city auditor read the recommendation from the Growth Fund Committee: to sign the grant agreement, and using the first three and last three months of employment records divided by the factor of 1,000 in order to obtain the full time equivalents for 1997.
It was moved by Council Member Hagness and seconded by Council Member Sande to approve the recommendation. Carried 13 votes affirmative.
MATTER OF LOAN RESTRUCTURING POLICY
The city auditor reported that there was a copy of the loan restructuring policy on their desks and was presented for approval at the Growth Fund subcommittee.
Chairman Carpenter stated that this was to change the current policy of the Growth Fund.
It was moved by Council Member Beach and seconded by Mayor Owens to approve the loan restructuring policy as follows: Upon request from a borrower that a loan be restructured to meet current financial conditions the following action will be taken:
1) Loan amount of $0 - $25,000: Staff will review request and make recommendation to the Growth Fund Chairman. Chairman will then approve or deny request with the option to refer to the Growth Fund Committee.
2) Loan amount of $25,001 - $100,000: Staff will review request and make recommendation to the Grand Forks Growth Fund Committee. Committee will then approve or deny request with the option to
MINUTES/GROWTH FUND AUTHORITY
December 1, 1997 - Page 2
refer to the Growth Fund Authority.
3) Loan amount of $100,001 or greater: Staff will review request and make recommendation to Grand Forks Growth Fund Committee. The Committee will review request and recommendation and make recommendation to the Growth Fund Authority. The Growth Fund Authority will then approve or deny the request.
John O'Leary, Urban Development, reported that under current policy whenever a loan is restructured it comes back to the full body and this policy would allow minor alterations in the structure of the loan to be approved by the Chair of the Growth Fund Committee; modifications between $25,000 and $100,000 would be approved by the subcommittee and modifications in amounts greater than $100,000, by the Jobs Development Authority. He stated that the reason this policy is before the Authority is that they've had a very low loan loss ratio and companies come back and ask for loans to be restructured for other reasons, ie., subordination, growth in company and need to restructure loan in order to accommodate their new debt requirements.
Upon call for the question and upon voice vote, the motion carried 13 votes affirmative.
ADJOURN
It was moved by Council Members Beach and Hamerlik that we do now adjourn. Carried 13 votes affirmative.
Respectfully submitted,
John M. Schmisek
City Auditor