Committee Minutes
MINUTES
Growth Fund Committee Meeting
Office of Urban Development Conference Room
1405 First Avenue North
Grand Forks, ND 58203
November 17, 2009
1. Roll Call
Present: Doug Christensen, Eliot Glassheim, Terry Smith, Dwight Thompson and Mike McNamara via telephone. Also present: Greg Hoover, Meredith Richards, Klaus Theissen, Keith Lund and Melanie Richardson.
2. Approval of Minutes – October 20, 2009: Motion by Dwight Thompson, second by Eliot Glassheim to approve minutes from previous meeting on October 20, 2009. All present voted aye. MOTION CARRIED.
3. Other Business:
EDA RLF Semi-Annual Report:
Meredith Richards refers to the report that was handed out to the Committee stating that we do have a decreased interest rate which should help with utilization. Meredith indicates that there have been very few changes from the previous report six months ago. We have approximately $900,000. loaned out that we are receiving payment on each month with nearly $1.1 million still available for future loans. Meredith will provide Committee members with the amount of income received each month from the $900,000. already loaned out.
Motion by Dwight Thompson, second by Doug Christensen to accept the EDA RLF Semi-Annual Report. All present voted aye. MOTION CARRIED.
EDA RLF Policies and Procedures:
EDA changed minimum interest rate from no lower than 4% to the lesser of 4% or 75% of the prime rate as published in the Wall Street Journal at the time of the loan, which should make the RLF loans more attractive. We will also adopt the policy of single loan limitation of $500,000. In addition, the EDA deleted loan guarantees and have indicated that they will more closely monitor the documentation used to secure the EDA funds to ensure that the project could not succeed without these funds.
Motion by Eliot Glassheim, second by Mike McNamara to accept the changes to the EDA RLF Policies and Procedures. All present voted aye. MOTION CARRIED.
4. Project Update:
Klaus Theissen stated that he and Keith Lund will be going to Minneapolis on December 7, 2009 to meet with Hood Packaging and the developers to present the negotiations discussed in the previous meeting. These included 15 acres of land, the City to request funding from EDA to support installation of the road east of their property, a PACE Loan and a 5 year property tax reduction.
5. Executive Session:
Motion by Eliot Glassheim, seconded by Terry Smith to go into executive session at 4:21 pm. All present voted aye. MOTION CARRIED.
Motion by Eliot Glassheim, second by Terry Smith to close the executive session at 5:03 pm. All present voted aye. MOTION CARRIED.
6. Adjournment:
Meeting adjourned at approximately 5:05 pm.
________________________ ________________________
Melanie R. Richardson Doug Christensen
Office of Urban Development Chairman