Committee Minutes

MINUTES/GROWTH FUND AUTHORITY (JDA)
Monday, April 25, 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 Monday, April 25, 2005 at the hour of 7:00 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Brooks, Hamerlik, Glassheim, Christensen, Kerian, Kreun, Mayor Brown, Gershman - 8; absent: none.

HOLD PUBLIC HEARING ON APPLICATION BY APPLIED
PRODUCTS, INC.

The staff report from the Urban Development director relating to Applied Products, Inc. Growth Fund application, with recommendation to hold a public hearing on the proposed Growth Fund application of Applied Products, Inc., approve the sale of the commercial building located at 917 South 46th Street (Lot 9, Block 4, Industrial Subdivision) to Applied Products for $680,000, and to approve a PACE loan in the amount of $130,000 with terms summarized in the report.

Chairman Gershman opened the public hearing.

Jim Melland, Grand Forks Region Economic Development Corporation, reported that the Applied Products request is from the company that manufactures RETRAX pickup bed covers, and about 16 months ago appeared before committee for first time and were granted an $80,000 loan and allowed them to lease a building in the Industrial Park, they have since that time almost doubled their employment from 12 to 23, and application before you is PACE loan interest buy-down participation and they proposed to purchase the building they are leasing at the appraised value from an outside appraiser, $680,000 plus they will be adding an addition to the building that will cost $450,000 and increase building size by about 50%, the loan through Bremer Bank is a little over $1 million, PACE participation is a max. of $130,000, term of loan is 15 years, mortgage on the building, but money will come back to the Growth Fund at the end of that period of time, they also project adding approx. 13 full-time employees within the next 12 months and 4 after that, and taking from 23 to 40 fulltime employees. The salary range is competitive, and very low turn-over.

Chairman Gershman closed the public hearing.

Council Member Christensen stated the projections of the salaries in the second year are in the area of $13.50/hour with full benefits.

It was moved by Council Member Kreun and seconded by Mayor Brown that the recommenda-tion be approved. Carried 8 votes affirmative.

ADJOURN

It was moved by Mayor Brown and seconded by Council Member Hamerlik that we adjourn. Carried 8 votes affirmative.

Respectfully submitted,


Saroj Jerath
Deputy City Auditor