EDA Minutes 03-07-1995
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, March 7, 1995 ~ 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Ron Hoglund, Vice Chairperson Barb
Schwientek, Tom Perrault, Al Larson, and
Harvey Kendall.
MEMBERS ABSENT:
Clint Herbst.
STAFF PRESENT:
EDA Treasurer Rick Wolfsteller and Executive
Director Ollie Koropchak.
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CALL TO ORDER.
Chairperson Hoglund called the EVA meeting to order at 7:00
p.m.
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Merrill Busch withdrew his application for commissioner of the
EDA because of increased demands within his employment. EDA
members interviewed William Demeules and John Duffy for the
commission seat vacated by Bob Mosford. Following a line of
prepared questions and discussion, the EDA Commissioners
agreed to recommend to the City Council the name of William
"Bill" Demeules for appointment to the EDA. The five-year
term will expire in December, 2000. Reasons for the
recommendation were: Resident of the City of Monticello, co-
owner of local business, expertise of running a business r
industrial preceptiveness, experienced EDA process first-hand,
supports business retention and expansion, interested in
community involvement, and creates an opportunity for
industrial prospect leads through Oemeule's network. Although
Mr. Demeules was recommended, the EDA felt both individuals
would serve the commission well and requested Mr. Duffy be
encouraged to resubmit his application for other commission
vacancies. His quali ties may better be served on another
commission.
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Barb Schwientek made a motion to approve the June 15, 1994 EDA
minutes. With no other EDA members in attendance at the June
15 meeting, no second to the motion was heard. Wi th no
corrections or additions, the minutes were filed as approved.
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Considered under item # 2.
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EDA MINUTES
MARCH 7, 1995
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Barb Schwientek made a motion to nominate and to approve the
following individuals as 1995 officers of the EDA.
President -
Vice President ~
Treasurer -
Assistant Treasurer -
Secretary --
Ron Hoglund
Barb Schwientek
Rick Wolfsteller
Harvey Kendall
Ollie Koropchak
Al Larson seconded the motion and with no further discussion,
the motion was approved unanimously.
Koropchak also remains the Executive Director of the EDA.
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Koropchak reviewed the process for development of the year-end
statements beginning with the statement of reV2nues and
expenditures. Under revenues, no revenues were transferred
from the Liquor or UDAG Funds to the EDA and revenues received
were the Muller $50,000 loan prepayment; interest income on
notes and estimated interest income on investments; loan fee
from Standard Iron closing; and miscellaneous revenues from
administration and service of the State and CMIF Grants to
Wright County for Standard Iron. Under expenditures, legal
fees were for closing documents associated with the prepayment
of the Muller Loan and service fees include fees paid by the
EDA to Marquette Bank for service of the Tapper and Muller
loans. EDA revenues for 1994 were $73,061.53 and with the
addition of the 1994 beginning balance of $636,814.08, the
1994 year-end balance is $709,875.61.
The balance sheet showed Equity Fund and Asset balances of
$709,875.61 each. With an appropriation total of $200,000 and
the principal balances of existing GMEF loans, the EDA cash in
bank is $209,584.73. Due to year-end adjustments necessary
for the estimated interest income -- investment, a small gap
exist between EDA statements and City accounts. The $75,000
gap of last year regarding the difference between the EDA
approved and City disbursed monies for the Standard Iron loan,
corrected itself.
The EDA 1995 cash flow projection or budget begins with the
$209,584.73 cash balance. Anticipated revenues include
appropriations from the Liquor Fund, UDAG, and ERG-Aroplax of
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EDA MINUTES
MARCH 7, 1995
$200,000; principal and interest from existing GMEF loans; and
estimated dollars for interest income - investment, loan fees,
and miscellaneous. Anticipated expenditures include two BRE
loans to the H-Window and Genereux at $50,000 each, $100,000
for new industries, and legal and service fces. Expected cash
balance of December 1995 is projected at $255,288.43.
Also, included was a summary of EDA activities for 1994.
Harvey Kendall made a motion to accept the 1994 end-year EDA
financial statements, activity report, and proposed 1995
budget as prepared. Al Larson seconded the motion and with no
further discussion, the motion passed unanimously. Said
reports to be submitted to the City Council on March 13, 1995.
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AND ERG FUNDS.
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All loan payback payments for the GMEF, UDAG - FSI, ERG -
Aroplax and Standard Iron, and CMIF - Standard Iron Funds are
current.
Of the original GMEF loans, the total of the principals is
$390,500.00. Principal amounts of $90,209.12 and interest
amounts of $62,073.66 were received in 1994 for a total
principal balance due of $300,290.88.
Of the original UDAG - FSI loan, the principal and interest
was $335,656.80. $198,130.75 has been received for a
principal and interest balance due of $137,526.05. This 12-
year loan ends January, 2000. The 1994 year-end UDAG balance
available for use by the EDA 1s $103,043.20 which includes
interest income - investment.
Of the original ERG - Aroplax loan, the principal and interest
was $207,969.92. $62,086.35 has been received for a principal
and interest balance due of $145,883.57. This 7--ycar loan
ends November, 1999. The 1994 year-end ERG balance available
for use by the EDA is $64,404.27 which includes interest
income - investment. Under State policy, the EDA is allowed
to retain the first $123,812.94 principal and interest.
Of the original ERG - Standard Iron - Wright County loan, the
principal was $250,000. $19,428.57 principal and interest has
been received on the ']--year loan ending June, 2001.
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EDA MINUTES
MARCH 7, 1995
Of the original CMIF - Standard Iron loan, the principal was
$100,000. $7,771.47 principal and interest has been received
on the 7-year loan ending June, 2001.
City staff is hopeful the $250,000 (M&E) State-Federal Grant
to the City of Monticello for the H-Window expansion will soon
close.
In summary, Koropchak reported, the combined year-cnd balances
avai lablc for use by the EDA in 1995 total $377,032,20;
however, annual appropriations total $200,000. In addition,
the EDA requested a 1995 Liquor Fund Appropriation of $100,000
from the City.
The EDA agreed that the GMEF is meeting one of its original
objectives: To become a self-perpetuating fund.
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WINDOW COMPANY.
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The EDA accepted the update as written.
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Other Business:
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a) Tapper I sIne. expansion - The EDA did not make any
conclusive decision regarding prepayment of the f irat
GMEF-Tapper Loan prior to disbursement of a second loan.
The EDA supports the use of the GMEF for business
expansion and retention.
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The EDA meeting adjourned at 9:30 p.m.
CQL \<,,"~-SL
Ollie Koropchak, Executive Director
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