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Minutes of Grand Forks City Council/Growth Fund
Authority (JDA) - Monday, May 26, 2009 - 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, May 26, 2009 at the hour of 5:30 p.m. with Chairman Gershman presiding. Present at roll call were Council Members Bjerke, McNamara, Bakken, Kreun, Gershman - 5; absent: Council Member Glassheim, Mayor Brown - 2.

ACCEPT ECONOMIC DEVELOPMENT ADMINSTRATION
REVOLVING LOAN FUND SEMI-ANNUAL REPORT AND
ADOPT RESOLUTION FOR SUBMISSION TO EDA


The staff report from the director of urban development relating to Economic Development Administration Revolving Loan Fund (EDA RLF) Semi-Annual Report, with recommendation to adopt the resolution for submission to the EDA.

Council Member Bjerke questioned why we are sequestering the funds relative to this program. Greg Hoover, director of urban development, reported that sequestration happens when within two reporting periods if we have not spent a certain portion of our allocated revolving loan fund, we have to put those funds in escrow in a separate interest bearing account and on a quarterly basis provide that interest payment back to the Treasury Department. The reason this happens is that the requirements for the EDA Revolving Loan Fund requires a minimum of 4% interest rate and the programs we have through the State of North Dakota with the PACE loan program are much more attractive to businesses so have difficulty in using that money.

Council Member Christensen reported present.

Mr. Bjerke asked how much money is in that fund, and what are the restrictions on how that money is spent. Mr. Hoover stated that over $2.9 million, and that loans have to be to businesses that are creating jobs, has to be actual net increase in new jobs, for equipment and improvements to buildings, building buildings, cannot be used for capital improvements such as using for 48th Street or lift stations, etc. Council Member Bjerke stated the money can be used for economic development type projects - and at some point should have debate about other economic develop-ment because could make arguments that infrastructure improvements are economic development

It was moved by Council Member Bjerke and seconded by Council Member Bakken to approve the recommendation and submit the resolution to EDA. Carried 6 votes affirmative.

ADJOURN

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

Respectfully submitted,



Saroj Jerath
City Auditor