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MINUTES/URBAN DEVELOPMENT COMMITTEE
Thursday, July 21, 1994 - 3:00 p.m.

Members present: Beach, Glassheim, Hanson.

1. Matter of Growth Fund application by ARC (with power to act)
Mr. O'Leary reported they had taken recommendations that were discussed on floor of council last Monday and distributed copies of recommendation, noted that terms would remain same as approved by the Growth Fund, and reviewed with the committee.

Joe Worman, ARC Laboratories, questioned condition re. rezoning of property, that he had talked with Planning Dept. and they said no problem with zoning, can continue to operate his business. He stated that Beckstead Std. operating in same zone, which is R-4; that his business is service business with not a lot of drive-up traffic. Mr. Glassheim suggested he obtain letter from Planning Department saying that business allowed.

The matter of personal guarantee from Mr. Worman was discussed. Mr. Worman stated he has had offers on vacant lot he owns, if sells, will put into CD for collateral. He also reported that the firm of Coates & Lucke is his financial advisor; and also noted that some of the outstanding accounts receivable have been received/settled, etc.

Moved by Hanson and seconded by Glassheim that the Committee approve the application from ARC Laboratories in the amount of $25,000 at 0% for three years; that at year four, ARC would begin repayment at a 4% rate with a five (5) year amortization schedule; that for each full time Grand Forks job created by the end of the third year, $3,000 of the principle would be forgiven up to $15,000 and that these jobs must have been in existence for six months for the loan to be forgiven; with conditions of the loan as follows: 1) Mr. Worman would inject $5,000 of new cash equity into the business; 2) The bank loan in the amount of $110,000 be approved and available; 3) Mr. Worman obtain pro- fessional financial consultation; 4) Mr. Worman submit quarterly financial statements which have been reviewed by an accounting firm; 5) the property which Mr. Worman is buying be properly zoned before the City will release funds; 6) The City obtain a first position real estate mortgage on 2102 38th Street South property owned by Mr. Worman; 7) The City will call note immediately if the business leaves Grand Forks; 8) Personal guarantee of Mr. Worman. Motion carried.

Moved by Hanson and Glassheim to increase Economic Development line item 470.0040 by $25,000 from Surplus Sales Tax. Motion carried.

Moved by Hanson and Glassheim to adjourn. Motion carried.

Alice Fontaine, City Clerk
Dated: 7/26/94.