Committee Minutes

MINUTES/GROWTH FUND AUTHORITY (JDA)
Tuesday, February 22, 2005 - 7:00 p.m.___________

The city council of the City of Grand Forks sitting as the JDA (Growth Fund Authority) met in the council chambers in City Hall on Tuesday, February 22, 2005 at the hour of 7:00 p.m. with Vice Chair Brooks presiding. Present at roll call were Council Members Brooks, Hamerlik, Glassheim, Gershman (teleconference), Christensen, Kerian, Kreun - 7; absent: Mayor Brown - 1.

The Grand Cities Children's Choir sang the National Anthem, Melanie Popejoy, director.

APPROVE APPLICATION FROM TECHNOLOGY
APPLICATIONS GROUP, INC. FOR PURCHASE OF PROPERTY
AT 810 SOUTH 48TH STREET

The staff report from the Growth Fund (JDA) relating to the Technology Applications Group, Inc. Growth Fund application, with recommendation to hold the public hearing on the proposed application, to approve the recommendation of the Growth Fund: 1) a seller-financed acquisition of the facility located at 810 South 48th Street from $500,000 to a single asset entity to be created and wholly owned by TAG's primary stockholder with the following terms: 5% interest per annum, 15-year term, monthly payments fixed at $3,600 (43,200 annually), balloon payment of the remaining balance at the end of the 15-year term, no prepayment penalty, re-amortization of monthly payments over the existing term in the event sufficient principal payments were to be paid by the company within the first 10 years of the loan, deferred payment until the necessary remodeling has been completed. 2) a $135,000 PACE loan to buy down the interest rate of a Bremer Bank loan for building fit up expenses secured by the primary stock holder of the company; 3) a grant in the amount of $200,000 to assist the company with relocation expenses; 4) a sixty-day lease extension at its current facility until September 30, 2005; and further recommendation that the JDA recommend that the Grand Forks City Council approve a three (3) year property tax exemption on the increased property value created by improvements to the facility as provided by NDCC 40-57.02.2 and current City policy.

Vice Chair opened the public hearing on the application, there were no comments, and the public hearing was closed.

Council Member Christensen moved the approval of the recommendation from the Growth Fund, and Council Member Hamerlik seconded the motion. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

ADJOURN

It was moved by Council member Kerian and seconded by Council Member Gershman that we adjourn. Carried 7 votes affirmative.

Respectfully submitted,



John M. Schmisek, City Auditor