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Minutes of Grand Forks City Council/Growth Fund
Authority (JDA) - Monday, January 7, 2008 - 5:30 p.m.____

The city council of the city of Grand Forks sitting as the Growth Fund Authority met in the council chambers in City Hall on Monday, January 7, 2008 at the hour of 5:30 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Brooks, McNamara, Glassheim, Gershman and Mayor Brown - 5; absent: Council Members Bakken, Kreun - 2.

COUNCIL MEMBER CHRISTENSEN REPORTED
PRESENT

APPROVE NATIONAL WIND, LLC LEASE IN
CORPORATE CENTER II

The staff report from the Urban Development director relating to National Wind, LLC, lease in Corporate Center II, with recommendation subject to city attorney review of documents, authorize lease with National Wind, LLC.

Greg Hoover, Urban Development director, reported they were approached by this firm which sites wind farms and were looking for approx. 100 sq. ft. of readily available space in the Corporate Center, the proposal was reviewed by the Growth Fund committee and their recommendation is to do a lease to National Wind, LLC for a period of 12 months at $9.50/sq. ft. plus $3.57 O/M charges and lease would include two parking spaces in the Central Ramp and use of kitchen space. There is a 90-day notice to vacate or renew, and the firm has indicated that they would be flexible enough to vacate if we found a tenant to lease the entire area; and noted that we offered to provide them assistance in relocating should that be the case, overall impact would be approx. $11,000 on the lease. Relocation costs would be very minimal, moving and incidental costs for time and trouble for moving.

It was moved by Mayor Brown and seconded by Council Member Brooks that this recommenda-tion be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

NOTIFY EDA OF DEFAULT OF ACRYLON COMPOSITES,
INC. AND AUTHORIZE PUBLIC SALE OF COLLATERAL

The staff report from the Urban Development director relating to Acrylon Composites, Inc., with recommendation to notify EDA of the default, authorize a public sale of the collateral per EDA
requirements, and write off the loan.

Mr. Hoover reported they have a non-performing loan that was made in 2004, $250,000 to Acrylon Composites out of Canada to manufacture fiberglass pickup toppers and accessories for New Vision on Gateway, using a new technology, loan was funded through our EDA Revolving Loan Fund and secured by UCC filings on the molds and a corporate guarantee of the parent company of Acrylon out of Winnipeg, the loan has been in default since March, 2005 and EDA requires us in this situation to inform them that it has been in default, indicate the steps we have taken to cure the default, that we have worked diligently to do that but after extended period the assistant city attorney has advised us that collecting on the corporate guarantee is highly unlikely due to the nature of that guarantee and foreclosure actions that are occurring in that company in Canada; the molds have limited value because they are for older vehicles, that we do not anticipate because of the market that there will be any proceeds, and that the Growth Fund Committee is recommending that you approve our notification to EDA that the loan is in default, authorize the public sale per EDA requirements and that we write off the loan.

It was moved by Council Member Brooks and seconded by Mayor Brown that this recommenda-tion be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

ADJOURN

It was moved by Mayor Brown and seconded by Council Member Glassheim that we adjourn. Carried 6 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor