Committee Minutes

MINUTES/GROWTH FUND AUTHORITY (JDA)

Monday, February 9, 2004 - 7:00 p.m.___________

The city council of the City of Grand Forks sitting as the Jobs Development Authority met in the council chambers in City Hall on Monday, February 9, 2004 at the hour of 7:00 p.m. with President Gershman presiding. Present at roll call were Council Members Brooks, Hamerlik, Glassheim, Christensen, Kerian, Kreun, Brown and Gershman - 8.

HOLD PUBLIC HEARING ON APPLICATION FOR FUNDING ASSISTANCE BY VALLEY SPECIALTY FOODS, LLC

The city auditor presented the matter of the public hearing on the proposed funding for Valley Specialty Foods, LLC PACE interest rate buy-down loan.

President Gershman called for the public hearing on the application and asked for comments. There were no comments and the public hearing was closed.

It was moved by Council Member Kerian and seconded by Council Member Hamerlik to approve the proposed PACE interest rate buy-down loan for Valley Specialty Foods, LLC in the approxi-mate maximum amount of $16,600.00 under the terms and conditions summarized in this report.

Jim Melland, Economic Development Corporation, reported that Valley Specialty Foods, LLC is an agri-business company in the heart of the industry that is important to our region and is a start-up company that has developed a food product, perogies (Polka Fest Perogies), that they began working over 5 years ago on this product and have developed it into a fresh food item, test-marketed it, and have found success in 160 retail outlets around the region and introduced into 4 distributors and are now at the point of expansion, they have raised about $350,000 in private equity, administrative and sales offices would be located in Grand Forks and they will be contracting production of the food product to Golden Valley in Leeds, ND. He stated that their sales and administrative offices will project up to 9 employees with that operation in the next 2 to 3 years . He stated the request before the Jobs Development Authority is for participation in a PACE loan, that the proceeds of the loan will be used to purchase equipment and working capital to help them get over the start-up phase into the full business stage. He stated that the employees in Leeds will grow to about 8, that the company in Leeds has their own production and does other products (pasta) but some of the equipment can be used for the manufacture of perogies and the production employees assigned to this project will grow to 8.

Upon call for the question and upon roll call vote, the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Christensen, Kerian, Kreun, Brown and Gershman - 8; voting "nay": none. President Gershman declared the motion carried.

ADJOURN

It was moved by Council Member Glassheim and seconded by Mayor Brown to adjourn. Carried 8 votes affirmative.

Respectfully submitted,


John M. Schmisek, City Auditor