EDA Minutes 02-05-1992C
MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, February 5, 1992 - 7:00 PM
City Hall
MEMBERS PRESENT: President Ron Hoglund, Barb Schwientek, Clint
Herbst, Brad Fyle, Bob Mosford, and Al Larson.
MEMBER ABSENT: Harvey Kendall.
STAFF PRESENT: Rick Wolfsteller and 011ie Koropchak.
STAFF ABSENT: Jeff O'Neill.
CALL TO ORDER.
President Hoglund called the EDA meeting to order at 7:02 PM.
The annual meeting was rescheduled from the original date of
January 28th to February 5th due to a lack of quorum.
2. CONSIDERATION TO APPROVE THE OCTOBER 29, 1991 EDA MINUTES
/^ Clint Herbst made a motion to approve the October 29, 1991 EDA
minutes, seconded by Bob Mosford, and with no corrections or
additions the minutes were approved as written.
3. CONSIDERATION TO ELECT 1992 EDA OFFICERS.
To comply with the EDA Ordinance Amendment which states that
the authority must elect officers annually, President Hoglund
opened the floor for nominations. He inquired of Barb
Schwientek's interest as president of which she declined. Al
Larson recommended the continuation of the current officers.
Barb Schwientek made a motion to close nominations and to re-
elect Ron Hoglund, President; Barb Schwientek, Vice President;
Rick Wolfsteller, Treasurer; Bob Mosford, Assistant Treasurer;
and 011ie Koropchak, Secretary. The motion was seconded by Al
Larson and with no further discussion the motion passed
unanimously.
4. CONSIDERATION TO REVIEW AND ACCEPT THE YEAR-END EDA FINANCIAL
STATEMENTS.
Assistant Treasurer Mosford reviewed with members the EDA
Year -End Financial statements as prepared by Mr. Wolfsteller,
Mr. Mosford, and Koropchak. The December 31th Balance Sheet
reported a cash on hand balance of $15,818.52 plus notes and
appropriations receivables for total assets of $350,005.28
which equals the total liabilities and fund equity of
$350,005.28. Theoretically this is our equity. The EDA asked
C when the Tapper and Muller loan balances were due, either five
years (ballooned) from the loan closing date for real property
or seven years for M & E.
The Income Statement reported 1991 revenues from the Liquor
Fund, UDAG and interest income for a total of $148,857.64.
Expenditures were service fees and interest expense for a
total of $585.74. The interest expense was a 1990 fund
deficit as this amount was allocated and transferred after
reporting of the 1990 financial statements. Excess revenues
over expenditures were $148,271.90 for a beginning year fund
balance of $201,733.38. The interest income - notes is
interest from approved loans only and is not interest from
approved appropriations as appropriation funds are not
transferred until a loan is approved and closed. Clint Herbst
asked of the FDA's 1992 $200,000 appropriations budget
request. Koropchak noted as recorded in the October EDA
minutes that the October 23 City Administrator's Memo to the
City Council for the 1992 proposed budget included the EDA's
request for Council to commit additional dollars from the
Liquor Funds (if necessary) to maintain a GMEF appropriation
balance of $200,000. Council approved this. Mr. Mosford
reiterated the EDA's objective which is to become self-
supporting.
Next, Mr. Mosford reviewed the 1992 Cash Flow Projections
L starting with the January cash balance of $15,818.52. He
noted since loan requests are an unknown, Appropriations -
Expected, are estimates only, as well as, the interest income
and loan fees. Notes Amorization payments are actual
projections for beginning balance and receipts total of
$182,420.00. Expenditures include Aroplax loan of $55,000
plus other loans, and legal and service fees for a total of
$153,480.00. This gives an expected December 1992 cash
balance of $28,940.00. In theory we'd have $28,940.00. The
EDA views the GMEF as a good program but has not seen the need
to be an aggressive loan making entity.
With no further questions, Al Larson made a motion to accept
the 1992 GMEF's Balance Sheet, Statement of Revenues and
Expenditures, and Cash Flow Projection Statements as reported
by Assistant Treasurer Mosford. Seconded by Barb Schwientek
and with no further discussion the motion passed unanimously.
Said financial statements to be submitted to the City Council
by March 1st.
5. CONSIDERATION TO HEAR THE YEAR-END STATUS OF GMEF LOANS.
Koropchak reported both approved GMEF loans for Tapper's Inc.
and Muller Theater are current as accounted for in the year-
end statements.
I
EDA MINUTES
2-5-92
6. CONSIDERATION TO HEAR STATUS REPORT OF THE AROPLAX CORPORATION
PROJECT AND OTHER INDUSTRIAL PROSPECTS.
In the agenda supplement, Koropchak outlined the June 26, 1991
approved GMEF loan and the financial proposal for Aroplax
Corporation. Original GMEF was for $30,000 at 6.5% over 7
years for Machinery & Equipment. Loan fee of actual costs or
not to exceed $450.00. The loan was never closed.
Original Proposal New Proposal
Bank
$462,500
Bank
$300,000
SBA
$381,000
SBA
$300,000
GMEF
$ 30,000
GMEF
$ 55,000
TIF (Equity)
$ 70,000
TIF (Equity)
$ 70,000
Econ Recov Gr
$170,000
CMIF•
$ 30,000
TOTAL
$936,000
TOTAL
$925,000
Also, enclosed was a letter of intent as prepared by BUS, Inc.
which is to be executed by Aroplax prior to any further
application process preparations therefore the EDA need not
Ctake approval action but only to consider this as an update.
Koropchak noted to the EDA the GMEF amount of $55,000
(increaso of $25,000) with estimated terms of ten years at 6%.
The EDA inquired of the city's dollar amount invested in this
project to date and if the GMEF Guidelines has a provision
which designates length of time between loan approval and loan
closing before loan agreement becomes null or void. Barb
Schwientek made a motion directing staff to research the
dollar amount invested in the Aroplax project; the current
GMEF Guideline provisions for expiration date of approved loan
agreement; and if necessary, outline said provision options
for EDA consideration to amend the GMEF Guidelines prior to
any action of the adjusted Aroplax Corporation loan request.
The motion was seconded by Al Larson and with no further
discussion the motion passed unanimously.
7. OTHER BUSINESS.
The EDA acknowledged receipt of the 1991 Ecomonic Activity
Report.
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C EDA MINUTES
2-5-92
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ADJOURNMENT.
The EDA meeting adjourned at 8:00 PM.
011ie Koropchak, EUA Executive Secretary
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