Committee Minutes

MINUTES/GROWTH FUND AUTHORITY
Monday, June 1, 1998 - 6:30 p.m.

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, June 1, 1998 at the hour of 6:30 p.m. with Chairman Carpenter presiding. Present at roll call were Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Carpenter, Klave, Babinchak, Hafner, Hagness - 10; absent: Council Members Glassheim, Sande, Beyer, Bakken, Owens - 5.

CONSIDER APPLICATIONS FOR FUNDING

a) CT Cooks Innovative Flyfishing

The city auditor read the recommendation from the Growth Fund Committee is to approve a loan of $16,000 at 4.5% for a term of five years.

Chairman Carpenter called for the public hearing. There were no comments and the public hearing was closed.

It was moved by Council Member Beach and seconded by Council Member Hagness to approve a loan of $16,000 at 4.5% interest for a term of five years to C.T. Cooks Innovative Flyfishing. Upon roll call vote the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Klave, Babinchak, Hafner, Hagness, Carpenter - 10; voting "nay": none. Chairman Carpenter declared the motion carried.

b) Meridian Environmental Technology, Inc.

The city auditor read the recommendation from the Growth Fund Committee for a PACE loan buydown of an amount up to $24,042 to be provided in the form of a zero interest loan, to be repaid starting at the time the PACE loan is paid in full at the same payment rate as the PACE loan, until the balance of the Growth Fund loan is paid in full, and a convertible debenture in the amount of $100,000 with terms to be negotiated.

Chairman Carpenter called for the public hearing in regards to the application from Meridian Environmental Technology, Inc.

Dick Olson, Development Corporation, stated he had minor technical point, that he didn't know if they wanted to call it a convertible debenture but it will be a convertible debt instrument.

Chairman Carpenter closed the public hearing.

It was moved by Council Member Bouley and seconded by Council Member Beach to approve the recommendation with convertible debt instrument vs. convertible debenture.

Chairman Carpenter stated that the terms of that are still being
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June 1, 1998 - Page 2

negotiated, and the idea is to allow us to convert at some point in time to equity in the company if feel that would be beneficial to the Growth Fund, if not would have a debt instrument until any point in time they would convert; and when finalized that information can come back to the full Authority.

Upon roll call vote the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Klave, Babinchak, Hafner, Hagness, Carpenter - 10; voting "nay": none. Chairman Carpenter declared the motion carried.

CONSIDER MATTER OF ASSIGNMENT OF CONTRACT
WITH PROMARK ONE MARKETING SERVICES, INC.
TO TOUCH 1, INC.

The city auditor read the recommendation from the Growth Fund Committee the assignment of the grant agreement be approved. It was moved by Council Member Babinchak and seconded by Council Member Polovitz.

It was noted that this will be reviewed by the legal department.

Upon call for the question and upon voice vote, the motion carried 10 votes affirmative.

CONSIDER MATTER OF NOAH'S ARK TENANT
FEASIBILITY STUDY

The city auditor read the recommendation from the Growth Fund Com-mittee to authorize up to $10,000 to hire an engineering firm to conduct a study to determine the feasibility of installing an air ventilation system to the Noah's Ark building.

Council Member Hagness moved and Council Member Hafner seconded the recommendation.

Chairman Carpenter reported that they are looking at having some-body that works with Fibreglass locate into this building and want to make sure that the proper air ventilation system can be put into the building before that would happen. Council Member Hafner stated that he wondered if ventilation alone is going to solve this problem because that smell is awfully invasive, and look into proper sealing of walls, etc. Chairman Carpenter stated he thinks that's part of the whole thing so don't have any negative impacts upon anybody else. Council Member Klave questioned if additional costs incurred will be directly related to their rent; and it was noted that if feasible to do and pursue this company, that would be in negotiations between City and their company.

Upon roll call vote the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Klave, Babinchak, Hafner, Hagness, Carpenter - 10; voting "nay": none. Chairman Carpenter

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June 1, 1998 - Page 3

declared the motion carried.

ADJOURN

It was moved by Council Member Beach and seconded by Council Member Hamerlik that we do now adjourn. Carried 10 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor