EDA Minutes 10-26-2004
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, October 26, 2004 - 4:00 p.m.
City Hall - Academy Room
MEMBERS PRESENT:
Chair Bill Demeules, Vice Chair Barb Schwientek, Roger Carlson,
Robbie Smith, Clint Herbst, and Darrin Lahr.
MEMBERS ABSENT:
Ron Hoglund.
STAFF PRESENT: Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak.
GUESTS:
Bruce and Cindy Hamond, VisiCom, Inc.
I . Call to Order.
Chair Demeules called the EDA meeting to order at 4:00 p.m. declaring a quorum.
2.
Consideration to approve the JuIv 27. 2004 EDA minutes.
Roger Carlson made a motion to approve the July 27, 2004 EDA minutes. Seconded by
Darrin Lahr and with no corrections and additions, the minutes were approved as
wrillen. Robbie Smith abstained (absent July 27'h)
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Consideration of adding or removing agenda items.
None.
4. Consideration of a request from VisiCom. Inc. relative to balloon pavment date for DMRF No.
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Koropchak provided the background information ofthe DMRF Loan No. III to VisiCom,
Inc. stating the loan was approved by the EDA on April 10, 2001, in the amount of $1 0,644,
5.5% interest rate. amortized over 10 years; provided, however, the entire remaining and
unpaid balance of principal and interest shall be due and payable in full on May 1, 2004. Tn
April 2004, the EDA approved extending the balloon payment date from May 1, 2004, to
November 1,2004. The current principal balance of the said loan is $6,073.01,
Bruce Hamond explained that due to the soft economy and since the previous tenant left, they
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EDA Minutes - 10/26/04
have been unsuccessful at finding a replacement tenant or additional tenants for the planned
expansion to the adjoining westerly lot. Therefore, without tenants, they are unable to secure
financing for the expansion. Additionally, Hamond noted the three downtown projects which
have not materialized: Walgreens, Block 35, and Landmark Square II and the vacancies within
the Steve Johnson properties. The Hamonds plan to start a new business called Fitness
Matters which will occupy the existing vacant building located at 212 West Broadway. Due to
the above reasons, they requested the EDA consider a one-year extension to the balloon
payment date on the EDA loan The request was supported by a letter from the lender, First
Minnesota Bank.
Clint Herbst made a motion to approve extending the balloon payment dateli'om
November 1, 2004, to November I, 2005. associated with the Loan Agreement between
the Alontieello EDA and VisiCom. Inc. dated April 10. 2001, and requesting a principal
and interest payment which would result in a remaining principal balance of$5.000,
payment due November 1. 2004. Robbie Smith seconded the motion and with nofurther
discussion, the motion passed unanimous~v. Reasonsfor motion: Dl'vlRF Loan are less
dollars, no specific guidelines addressing balloon date extensions, sufficient EDAfunds,
soft economy and lack of downtown economic activity, and letter ofsupportfi'om lender.
5.
Consideration to aDDrove authorization to execute a Satisfactorv of Mortgage for GMEF Loan
No. 006 (Custom CanoDV).
Koropchak informed the EDA commissioners of a request from Pat Dwyer, Bank of Elk River,
for a Satisfactory of Mortgage relative to GMEF Loan No. 006, a real estate loan, to Stephen
P. Birkeland, Jr. and Joan M. Birkeland, for the construction of Custom Canopy. The balloon
payment had been paid in-full on August 18, ] 998. The Birkeland's are looking to refinance.
Roger Carlson made a motion authorizing execution of the Satisfaction ofAlortgagefor
GA1EF Loan No. 006 between the i\,fonlicello EDA and Stephen P Birkeland, Jr. and
Joan lv1. Birkeland. Seconded by Barb Schwientek and with no jz,rther discussion, the
motion passed unanimously.
6. Consideration to review terms and eXDiration dates of EDA Commissioners.
Koropchak noted this was an information item only and no action was required. Given the
decision of Council Members Carlson and Smith to not run for re-election, the EDA and
Koropchak thanked them for their years of service. Pending the out-come of the elections will
the EDA position held by Commissioner Herbst be affected. Commissioner Schwientek
agreed to be considered by the Council for another 6-ycar term on the EDA.
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EDA Minutes - 10/26/04
7.
Executive Director's Report.
The EDA accepted the report as VvTitlen. Bill Demeules informed the EDA that closing on the
Standard Iron building and lot to Walboard, Inc. was anticipated for November 18,2004.
Standard Iron will have a 4-year lease on a portion of the building.
8. Other Business.
None.
9. Adiournment.
Robbie Smith made a motion to adjourn the EDA meeting. Seconded by Barb Schwientek
and with nofurther business, the EDA meeting adjourned at 4045 p. m.
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Ollie Koropchak, Recorder
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