Committee Minutes

Minutes/Growth Fund Authority (JDA)
Monday, December 14, 2009 – 5:30 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, December 14, 2009 at the hour of 5:30 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Bjerke, Gershman, Glassheim, Christensen, Kreun, Mayor Brown - 8; absent: Council Member Bakken, McNamara - 2.

Presentation by LM Glasfiber.

Bill Burga, President, LM Glasfiber, gave a short presentation which included market information, outlook for the industry and product description. He stated that his past summer the plant celebrated its 10th Anniversary and heralded the Grand Forks plant as being the leading plant in the company for production and they have utilized this facility to train employees from other locations.

(McNamara joined the meeting.)

Burga noted that presently the plant makes 100’ blades and that there is a move in the industry to have a market for 200’ blades and are looking to make some changes to allow for the construction of these larger size blades, but would also like to maintain production at the same level they currently have, which will be a challenge given the size constraints of the current plant. He explained that they also have a challenge with the current plant in regards to storage for completed blades and are storing many at off site rented locations to accommodate the seasonal demand for the product delivery. He continued that it would be preferable to store on site to eliminate the extra handling of the completed blades, as each time a piece is moved there is the risk of damage to the product.

Burga again recognized the excellent employee base that Grand Forks has provided and the partnerships that have been developed with University of North Dakota and most recently with Northland Community and Technical College. He added that as they continue to work with the City on lease negotiations wanted to provide this update to the Council so they would be aware of the status of the company and their needs going forward.

Approve Modification of Bremer Bank loans for LM Glasfiber Project

The staff report from the Urban Development Director relating to modification of Bremer Bank loans for LM Glasfiber Project, with recommendation to approve.

Hoover reported that there is a current offer from Bremer Bank to restructure the existing loans related for LM Glasfiber at a very favorable rate of 6.25% and by approving the restructuring over the 5 year term there is an interest saving and a lowered loan payment which will better meet our needs.

It was moved by Mayor Brown and seconded by Council member Christensen to approve modifications to the Bremer Bank loans for the LM Glasfiber Project as recommended in the staff report. Aye: - 7; Nay – None. Motion carried.
ADJOURN

It was moved by Council Member Glassheim and seconded by Council Member Kreun to adjourn the meeting at 6:05 p.m. Carried 7 votes affirmative. President Gershman declared the meeting adjourned.

Respectfully submitted,

Saroj Jerath
City Auditor