Print VersionStay Informed
Minutes of the Grand Forks City Council/Growth
Fund Authority (JDA) - Monday, July 24, 2006 - 7:00 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, July 24, 2006 at the hour of 7:00 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Brooks, McNamara (teleconference), Gershman, Bakken, Kreun - 5; absent: Council Member Glassheim, Mayor Brown - 2.
      HOLD PUBLIC HEARING ON LM GLASFIBER
          EXPANSION AND APPROVE PROPOSED EXPANSION

The staff report from the urban development director relating to LM Glasfiber expansion, with recommendation to hold a public hearing and approve the proposed expansion with the financing package presented in this report; and authorize staff to (a) proceed with bidding on Phase I change order per plans and specifications to be prepared by EAPC; (b) amend the current debt instrument with Bremer Bank to $3,487,500, an increase of $1,500,000; (c) enter into a lease agreement with LM Glasfiber; and (d) modify the lease with Amazon.com.

COUNCIL MEMBER CHRISTENSEN REPORTED PRESENT

Chairman Gershman opened the public hearing, there were no comments and the public hearing was closed.

Council Member Christensen reported that the Growth Fund Committee approved this and wanted the council to know that at the end of 3 years if they chose not to continue with us we would then be in debt for $4+ million, but of all the space, no tenant, and obligation to serve as $4.1 million, but is a good project for the next 3 years. It was noted that the total is 125,000 sq.ft. and that the building would be converted from a warehouse facility to a manufacturing facility, which would then increase the value of the building.

Mr. Thiessen, Economic Development, stated that LM has been good corporate citizen in this community and the expansion by March 2007 will be up to 550 employees and roughly from 32 to 35 employees two and a half years ago and will have an additional annual payroll of $6.4 million, and in one of the strategic sectors as identified by Grand Forks Economic Development Corporation and it is a good example of working collectively with the corporate client, Greg Hoover and the Department of Urban Development. Blake Seas, general manager of LM, was present.

It was moved by Council Member Brooks and seconded by Council Member Kreun that this recommendation be approved. Upon roll call the following voted "aye": Council Member Brooks, McNamara, Christensen, Bakken, Kreun, Gershman - 6; voting "nay": none. President Gershman declared the motion carried.
      APPROVE CHANGE ORDERS FOR LM GLASFIBER
      EXPANSION

The staff report from the urban development director relating to LM Glasfiber expansion change orders, with recommendation to approve change order requests ($169,010).

It was moved by Council Member Bakken and seconded by Council Member Kreun that this recommendation be approved. Carried 6 votes affirmative.

ADJOURN

It was moved by Council Member Kreun and seconded by Council Member Brooks that we adjourn. Carried 6 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor