Loading...
EDA Minutes 04-25-2006 . . . ANNUAL MEETING MINUTES MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, April 25, 2006 - 4:00 p.m. City Hall - Academy Room MEMBERS: Chair Bill Demeules, Vice Chair Barb Schwientek, Tom Perrault, and Susie W ojchouski. MEMBERS ABSENT: Ron Hoglund, Wayne Mayer, Darrin Lahr STAFF: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Recorder Angela Schumann. 1. Call to Order. Chairman Demeules called the meeting to order at 4:06 PM. 2. Consideration to approve the November 29.2005 and December 13. 2005 EDA minutes. The minutes of November 29th, 2005 are to be provided at an upcoming meeting. MOTION BY COMMISSIONER SCHWIENTEK TO APPROVE THE MINUTES OF DECEMBER 13, 2005. MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION CARRIED, 4-0. 3. Consideration of addinl! or removinl! al!enda items. NONE. 4. Consideration to elect 2006 EDA officers. Koropchak reported that at the last meeting, Perrault had noted that a clarification was needed for titles and position in order to be consistent with the bylaws. Koropchak reported that she had checked the bylaws. Currently, Ron Hoglund is listed as Assistant Secretary. The bylaws require an Assistant Treasurer. The correction has been made and the slate presented is correct. Tom Perrault asked if because Schumann would be a secretary as she is taking minutes. Koropchak stated that Schumann is recorder. MOTION BY COMMISSIONER WOJCHOUSKI TO ELECT THE FOLLOWING AS 2006 EDA OFFICERS. President, Bill Demeules Vice President, Barb Schwientek Treasurer, Rick Wolfsteller Assistant Treasurer, Ron Hoglund Secretary, Ollie Koropchak MOTION SECONDED BY COMMISSIONER SCHWIENTEK. MOTION CARRIED, I . . . EDA Minutes - 04/25/06 4-0. 5. Consideration to review and accent the vear-end EDA Financial Statements. Activity Report. and proposed 2006 Budget. Koropchak noted that the EDA does not have a final interest income investment statement at this time, as the City has not closed out its books. As such, the statement included is a draft, which illustrates what is on record in loan fee and reimbursements. The EDA Statement of Revenues and Expenditures year-end fund balance is $1,641,476.74. Referencing the balance sheet, Koropchak noted that GWC and TJ Martin's balloon payments come due in 2006. The balance sheet indicates a cash balance of$86l,281. Cash flow projections, as of December 2006, indicate a cash balance of $631 ,890. Looking at potential expenditures, Koropchak noted that Karlsburger Foods is looking to apply for a loan for machinery and equipment loan. There are also some other companies looking at Monticello that may apply for a loan. Schwientek asked if the liquor store was paid back, would there be enough funds to consider other projects. Koropchak indicated that it appeared that there would be, as the EDA had terminated the DMRF program and the revitalization plan for Block 35. Demeules asked if the money had to be used to pay down bond debt for the City. Wolfsteller clarified that the EDA wouldn't be paying back anything but the original seed money. Demeules asked if at times when there is a higher balance, is the EDA able to transfer funding back to reduce debt. Wolfsteller stated that would be reasonable. Koropchak clarified within the EDA Guidelines it states that EDA reserve Liquor Funds must be transferred to the debt service funds of the city to be used solely to reduce tax levies for bonded indebtedness of the city. MOTION BY COMMISSIONER SCHWIENTEK TO APPROVE TRANSFERRING RESERVE LIQUOR FUNDS IN AN AMOUNT OF $80,891 FOR BONDED INDEBTEDNESS. MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION CARRIED, 4-0. Remaining balance ofthe reserve Liquor Funds is $100,000 after transfer of the $80,891. MOTION BY COMMISSIONER WOJCHOUSKI TO ACCEPT THE DRAFT COPY OF THE 2005 YEAR-END FINANCIAL STATEMENT WITH THE ADJUSTMENT FOR THE LIQUOR FUND TRANSFER AND ACTIVITY REPORTS FOR SUBMISSION TO THE COUNCIL IN MAY. 2 . . . 4-0. EDA Minutes - 04/25/06 MOTION SECONDED BY COMMISSIONER SCHWIENTEK. MOTION CARRIED, 6. Consideration to review the summary vear-end balances of the GMEF, MIF, UDAG. and ERG Funds. 7. 4-0. 8. Koropchak stated that all GMEF and MIF State and Federal loan payments are current, referring the commissioners to the individual loan reports provided with the agenda packet. Additional funds available for GMEF use are MIF State $27,983 and MIF Federal $331,307. Perrault referenced the SCERG report, asking how the EDA had paid more interest than they had on the Aroplax loan. Koropchak stated that she would check with the finance department. Koropchak stated that no action was required on those reports. Consideration to review for amendment the Business Subsidv Criteria and Bvlaws of the EDA. Koropchak stated that the Business Subsidy Criteria was included as the EDA must annually review them for changes. The EDA recently amended the Criteria to include guidelines for use of federal dollars from the payback of the Twin City Die Cast loan. The Commissioners did not find any items meriting change. MOTION BY COMMISSIONER SCHWIENTEK TO ACCEPT THE BUSINESS SUBSIDY CRITERIA AS WRITTEN. MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION CARRIED, 4-0. DeMueles stated that the order of business spelled out doesn't necessarily follow the agenda. Koropchak stated it would be easier to change the agenda, rather than bylaws. MOTION BY COMMISSIONER WOJCHOUSKI TO ACCEPT BYLAWS AS WRITTEN. MOTION SECONDED BY COMMISSIONER SCHWIENTEK. MOTION CARRIED, Executive Director's Report. 3 . . . EDA Minutes - 04/25/06 Koropchak reported that Karlsburger Foods was approved by Council for establishment of a TIF District. They may apply for the machinery and equipment loan. They appear to be set to commence construction on June 1 st. They have not yet chosen a lender. Koropchak stated that Precision Technologies will be leasing from Brad Barger. They had inquired if they would be able to get a loan to customize their lease space. The EDA attorney stated that it is up to the EDA to decide on that item, as well as what type of security would be given. Demeules asked if it would fit criteria based on employment. Koropchak confirmed. Koropchak stated that the EDA wouldn't have a mortgage, rather personal and corporate guarantees. Koropchak also briefly reviewed HRA activities and marketing committees efforts for the industrial park. Koropchak stated that the fiber optics task force has hired a consultant to do feasibility study. Perrault asked what happened to VIPER. Koropchak stated that they were not able to get bank financing, so they were able to find a building to lease in Big Lake. 9. Other Business. NONE. 10. Adjournment. MOTION BY COMMISSIONER SCHWIENTEK TO ADJOURN. MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION CARRIED, 4-0. MEETING ADJOURNED AT 4:50 P.M. 4