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MINUTES/GROWTH FUND AUTHORITY
Monday, November 17, 1997 - 6:30 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, November 17, 1997 at the hour of 6:30 p.m. with Chairman Carpenter presiding. Present at roll call were Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Babinchak, Bakken, Hafner, Hagness, Owens - 11; absent: Council Members Beyer - 1; 2 council seats vacant.

HOLD PUBLIC HEARING ON APPLICATION BY
PRIBBS STEEL & MANUFACTURING, INC. FOR
FUNDING OF PROJECT

Chairman Carpenter read the recommendation from the Growth Fund Subcommittee as follows: 1) approval of a loan up to $134,500 for the community's portion of the Bank of North Dakota's PACE interest buydown for the $750,000 request for building construction and the $500,000 request for equipment purchase. The assistance will be in the form of a zero interest loan to be repaid, starting at the time the PACE loan is paid in full, at the same payment rate of the PACE loan until the balance of the Growth Fund loan is paid in full. 2) Approval of a $350,000 loan with a 6% interest rate, amortized over 20 years. In addition, the Committee recommends that the loan have a balloon payment of the balance of the loan, due in 5 years. This provision will allow for a renegotiation of the time for amortiza-tion or the interest rate depending on the progress of the Company. This recommendation is subject to meeting EDA Revolving Loan Fund requirements.

Chairman Carpenter opened the public hearing on the proposal from Pribbs Steel & Manufacturing, Inc. for a Growth Fund loan and PACE buydown for their proposed project. There were no comments and the public hearing was closed.

It was moved by Council Member Bakken and seconded by Council Member Sande to approve the recommendation.

Council Member Hamerlik reported that relative to the consideration of this particular financing, was it taken under consideration the location within the State of North Dakota and the city of Grand Forks since it is not within the city limits. Chairman Carpenter reported that there was considerable discussion about the location of the facility, the fact that it was outside the city limits and the subcommittee did consider that before making the recommendation.

COUNCIL MEMBER KLAVE REPORTED PRESENT

Council Member Polovitz stated that they discussed this in committee and that he made a recommendation that they strongly urge any other companies wanting to building a building or relocate, however, that they work very closely with the Development
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Foundation, that this belongs in the Industrial Park, and reasons given for not being in the Park are weak at best; that they got a better deal at their location, poor planning and should have been in the Park, now they will be getting funding for a building but in wrong location, and asked companies to work with us from beginning.
Council Member Beach reported that the project is already beyond that point and cannot as practical matter turn back. Council Member Polovitz stated that it is a good project from Growth Fund perspective when looking at numbers, increase in employees, etc. but wrong location. Council Member Beach reports that this brings type of industrial technology to Grand Forks that have not had previously, it's a laser break and enables them to do iron work much faster, much more cleanly and greater quantity than able to do before, only five in the nation.

Upon call for the question and upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness, Mayor Owens - 12; voting "nay": none. Chairman Carpenter declared the motion carried.

HOLD PUBLIC HEARING ON APPLICATION BY
AGSCO, INC. AND AG PARK, L.L.C. FOR
FUNDING OF PROJECT

Chairman Carpenter read the recommendation from the Growth Fund Subcommittee as follows: 1) denial of the $200,000 loan based on the following: a) it can be internally financed by them, b) they are located outside the city limits, c) this would be the second time they have received funds, and d) the number of jobs created in Grand Forks will be low. 2) Approval of a PACE buydown of an amount up to $85,000. The assistance will be in the form of a zero interest loan to be repaid, starting at the time the PACE loan is paid in full at the same payment rate as the PACE loan, until the balance of the Growth Fund loan is paid in full.

Chairman Carpenter opened the public hearing on the proposal from Agsco, Inc. and AG Park, LLC for a Growth Fund loan and PACE buydown for their proposed project. There were no comments and the public hearing was closed.

It was moved by Council Member Hamerlik and seconded by Council Member Bakken to approve the recommendation. Upon call for the question and upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness, Mayor Owens - 12; voting "nay": none. Chairman Carpenter declared the motion carried.

COUNCIL MEMBER HAMERLIK EXCUSED

Chairman Carpenter stated that there were no items on the agenda
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relative to the Promark One Marketing Service nor the loan restructuring policy.

John O'Leary, Urban Development Office, reported that they have not had restructuring requests come to the full JDA and was not required to be on the agenda, and Promark One was held.

ADJOURN

It was moved by Council Member Sande and seconded by Council Member Hafner that we do now adjourn. Carried 12 votes affirmative.

Respectfully submitted,



Saroj Jerath
Deputy City Auditor