EDA Minutes 04-23-1996
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
April 23, 1996 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson Ron Hoghmd, Tom Perrault, Bill Demeules, and
Ken Maus.
MEMBERS ABSENT: Vice Chair Barb Schwientek, Clint Herbst, and Al Larson.
STAFF PRESENT: Ollie Koropchak, Executive Director
STAFF ABSENT: Rick Wolfsteller, Treasurer.
1. CALL TO ORDER.
Chairperson Hoglund called the EDA meeting to order at 7:05 p.m.
2.
CONSIDERATION TO APPROVE THE JANUARY 23.1996 EDA MINUTES.
Tom Perrault made a motion to approve the January 23, 1996 EDA minutes.
Seconded by Bill Demeules and with no corrections or additions, the minutes were
approved as written. Not present at the EDA meeting of January 23, Ken Maus
abstained.
3.
CONSIDERATION TO ACKNOWLEDGE THE RESIGNATION OF HARVEY
KENDALL FROM THE EDA AND TO ACKNOWLEDGE THE APPOINTMENT
OF KEN MAUS.
Tom Perrault made a motion acknowledging the resignation of Harvey Kendall and
the appointment of Ken Maus to the EDA. Maus, the IDC representative, was
appointed by the City Council on April 22, 1996. His term expires December, 1996.
Bill Demeules seconded the motion and with no further discussion, the motion
passed. Maus abstained.
4. CONSIDERATION TO ELECT AN ASSISTANT-TREASURER OF THE EDA.
With the resignation of Mr. Kendall, the office of Assistant-Treasurer was vacated.
Maus volunteered to serve as Assistant-Treasurer. Bill Demeules made a motion
electing Ken Maus as the EDA Assistant-Treasurer. Seconded by Tom Perrault and
with no further discussion, the motion passed. Maus abstained.
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APRIL 23, 1996
5. CONSIDERATION OF AN UPDATE RELATING TO APPROVED GMEF
LOAN NO. 012 FOR STANDARD IRON.
Based on the two options outlined by Attorney Bubul for resolution of the conflict
of interest issue relating to the approved GMEF Loan NO. 012 in the amount of
$70,000 to Standard Iron, the EDA agreed to Option No.2: GMEF Loan No. 012
becomes null and void, July 23, 1996. The EDA to consider approval of a new loan
(GMEF No. 013) after August 1, 1996, this the effective date of the amendment to
the Law providing a provision for EDA Commissioners to declare a "Declaration of
Potential Conflict of Interest". This allows Commissioner Demeules to remain on
the EDA. Commissioner Demeules abstained from any discussion of this agenda
item.
6. CONSIDERATION TO EXTEND THE DISBURSEMENT DATE FOR
APPROVED GMEF LOAN NO. 011 FOR TAPPER'S INC.
Koropchak expressed concern that either building or site plans for the Tapper
expansion have been submitted to the City or City Engineer. GMEF Loan No. 011,
a $100,000 real estate and M&E loan, was approved on November 28, 1995.
Disbursement date of the loan is May 28, 1996. It is anticipated upon closing, the
EDA funds will be placed in an Escrow Fund and disbursed by the lending
institution (Steams County National Bank, St. Cloud) or a title company.
After some discussion, Ken Maus made a motion to deny the request to extend the
disbursement date from May 28, 1996 to July 28, 1996. This to encourage submittal
of the plans by the developer and also that the GMEF Guidelines do not have a
provision allowing for the extension of the disbursement date. Tom Perrault
seconded the motion and with no further discussion, the motion passed unanimously.
7.
OTHER BUSINESS.
a) H-Window - EDA Commissioners acknowledged receivmg the check of
$1,257.00 from the H-Window. Upon the withdrawal from the State and
GMEF Loans by the company, the EDA requested a letter be mailed to the
company for reimbursement of the legal fees associated with the preparation
of the loan documents. This the reimbursement payment.
b) Conflict of Interest billing - Koropchak informed the commissioners that
Attorney Bubul would be submitting a bill to the EDA for work regarding
legislative changes to the conflict of interest statute. The attorney suggested
the company be responsible. Koropchak felt the conflict was not the sole
responsibility of the company. Commissioners felt the bill should be shared
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EDA MINUTES
APRIL 23, 1996
among other Kennedy & Graven clients who shared the same statutory issue.
Without having received the bill, the commissioners agreed to a wait and see
approach.
c) Other - The commissioners requested the GMEF Guidelines be reviewed for
possible revisions as some provisions may need further defining or tightening
up. Such as extension of disbursement date, up-front application fee, etc.
d) Ken Maus requested a copy of the GMEF Guidelines and the year-end
statements.
8. ADJOURNMENT.
Tom Perrault made a motion to adjourn the EOA meeting. Bill Oemeules seconded
the motion and with no further business, the meeting adjourned at 8:00 p.m.
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Ollie Koropchak, Executive Director
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