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EDA Minutes 04-25-2000 I I , EDA Minutes - 04/25/00 MINUTES ANNUAL MEETING MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, April 25, 2000 - 7:00 p.m. City Hall - Academy Room Members Present: Chair Bill Demeules, Assist Treasurer Ken Maus, Clint Herbst, Ron Hoglund and Darrin LahI'. Barb Schwientek and Roger Carlson Executive Director Ollie Koropchak and Recorder Lori Kraemer Members Absent: Staff Present: GUEST: Pam Campbell, DA T Chairperson 1. Call to Order. Chair Bill Demeules called the meeting to order at 7:00 p.m. 2. Consideration to approve the Februarv 22. 2000 EDA minutes. A MOTION WAS MADE BY RON HOGLUND AND SECONDED BY BILL DEMEULES 'ro APPROVE TI--IE FEBRUARY 22, 2000 EDA MINUTES. Motion carried. " _J. Consideration of adding agenda items. None 4. Consideration to hem an update relative to the design concepts from Claybaugh Preservation Architecture, Inc. for three building facade improvements. Pam Campbell, DA T Chair, provided an update for the EDA commissioners on the progress for preparation of the facade design concepts for the Companion Pets, Preferred Title, and previous Senior Center buildings. Campbell noted that Claybaugh had visited two of the three businesses, and that Dennis Anderson was hesitant to have Mr. Claybaugh visit his building, the former senior center, as there is still a parking issue. Campbell noted that Mr. Claybaugh was very hesitant to discuss price with the building owners as he is more on the architectural end. Pam Campbell provided designs from MI'. Claybaugh on his proposal and explained some of the ideas Claybaugh had proposed. Koropchak enclosed a copy of an invoice from Claybaugh t()[ his one-day visit and observation of the three designated buildings. Additional invoices will follow for prepmation of concepts, etc. The EDA previously authorized a not-to~exceed amount of $3,000 for the concept drawings. -1- I I . EDA Minutes - 04/25/00 Campbell asked the members to advise her on where to go from here as only two buildings were looked at versus the three initially proposed. It was suggested to possibly apply the $1,000 still available to any future construction in that area. Campbell will provide pictures of the original Masonic Lodge building at the next EDA meeting. Ken Maus commented on the Bill Grassl building and suggested the city keep in contact with him as well. No fwiher action was required by the EDA. 5. Consideration to adopt a resolution ratifyinu the agreement to extend the Non- Perfcmnance Date for GMEF Loan No. 017. Ollie Koropchak provided the commissioners a staff report advising that via a polling, six of the seven EDA commissioners replied and agreed to extcnd the Non-Perhmnance Date from March 28,2000, to September 28,2000, fiJr GMEF Loan No. 017. GMEF No. 017 was approved by the EDA for Twin City Die Castings Company on September 28, 1999 in the amount of $1 00,000. The loan is for machinery and equipment and shares a second position with the $500,000 Minnesota Investment Fund, and behind the $4.8 million Industrial Revenue Bond. Attorney Bubul did not see extending the Non-Performance Date as setting a precedent because of the involvement and complexity of the State and Bond dollars. Although the die casting machines and CNC machines arc on order, until delivery, there was no collateral unless we proceeded with a temporary mortgage on the real estate. Management agreed, this was not practical. Therefl11T, the reason to extend the performance date. The EDA loan closing documents arc prepared and have been reviewed by TCDC and the State. The closing for the EDA and State loans arc anticipated to close upon delivery of the equipment. A MOTION WAS MADE BY KEN MADS AND SECONDED BY CLINT HERBST TO ADOPT A RESOLUTION RATIFYING THE AGREEMENT TO EXTEND TIlE NON-PERFORMANCE DATE FOR GMEF LOAN NO. 017. Motion carried. 6. Consideration to review for approval the preliminary loan apDlieation from J.J. Company, Inc. (dba Profile Powder Coating, Inc.). Ollie Koropchak provided the information regarding the preliminary loan application and gave a brief project summary as well. Koropchak noted the GMEF Loan Request was for $150,000 for machinery and equipment. Profile Powder Coating, Inc. is a service company that specializes in providing metal fabricators with a quality service at a competitive price. The service providcd at the Rogers facility is a metal powder coat finishing. The Rogers facility has been in operation since 1989 and was started by Steve Dejong and his father. Steve has been the sole proprietor the last five to six years. The proposed facility in Monticello will be a -2- I I . EDA Agenda - 4/25/00 wood powder coating process. The real estate property consist of 3.15 acres of land and the construction of a 30,000 sq. ft. block oHice/manuLlcturing f~lcility. The estimated market value of the property for payable 2002 is $960,000. The proposed expansion will create at least 30 new jobs for the City of Monticello, State, and Region at an hourly wage of between $12 to $16 or higher excluding benefits. Koropchak had recommended reviewal of this information prior to the EDA meeting for discussion and potential questions. Neither Steve DeJong, Profile Powder Coating, Inc. nor Brad Stevens, Security State Bank, were present at the 1:;;DA meeting. Koropchak advised the members that consideration to approve or disapprove GMEF Loan No. 018 would take place at a later date. I-Iowever, Korpchak stated that the company may appreciate an approval of the preliminary application and the loan amount subject to review oflender's commitment and analyst and submitted final GMEF application. Rate and term to be approved later as well. A MOTION WAS MADE BY RON HOGLUND AND SECONDED BY DARRIN LAIIR FOR PRELIMINARY APPROVAL IN THE AMOUNT OF $150,000. Motion carried unanimously. 7. Executive Director's Report. a) T. .J. Martin Loan - Koropchak provided a letter written to Eric Bondhus relative to the change of monthly payments as per the Loan Agreement as the first two years of loan payback were for interest only. Beginning April 1, 2000, the monthly payment includes principal and interest. As of Apri I 20, the April payment has not been submitted. This loan payback has been repeatedly late. Herbst questioned whether the City/EDA had a latc fee and Koropehak advised that after speaking with the City Attorney, it was advised that the policy states that failure to pay would be grounds to terminate loan immediately. It was suggested that Koropehak send Mr. Bondhus a copy of that section of the policy. Koropchak was also advised to call Mr. Bondhus and advise him of the discussion at the EDA meeting. b) Twin City Die Castings - 'fhe $500,000 grant to the City from the State will be loaned to TCDC at an interest rate of 4% over 7 years. The payback will go into a separate account established by the City and will be accounted for independent of the FDA - GMEF. In the future, the City Council will approve revolving loans that utilize this money, not the EDA. The Profile dollars will also be Federal dollars and must comply with Federal regulations. c) Lender, HRA, Council Workshop - Scheduled for May 3, 5:30 p.m. Discussion about downtown redevelopment. ^' --)- I I . EDA Agenda - 4/25/00 8. Othcr Busincss. Nonc 9. Adjournment. A MOTION WAS MADE BY BILL DEMEULES AND SECONDED BY DARRIN LAHR TO ADJOURN THE MEETING AI' 8:30 P.M. Motion carried. cnu-~ ~\if\~ $tcnJ.Clr~ -4-