EDA Minutes 07-23-1991
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, July 23, 1991 - 7:00PM
City Hall
MEMBERS PRESENT:
Chairperson Ron Hoglund, Barb Schwientek, Bob
Mosford, Clint Herbst, Harvey Kendall, and Al
Larson.
MEMBERS ABSENT:
Brad Fyle.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Ron Hoglund called the EDA meeting to order at
7:02 PM.
2.
CONSIDERATION TO APPROVE THE APRIL 23, 1991 AND JUNE 26, 1991
EDA MINUTES.
Harvey Kendall made a motion to approve the April 23 and June
26, 1991 EDA minutes. Seconded by Barb Schwientek and without
additions or corrections, the minutes were approved as
written.
3.
CONSIDERATION TO REVIEW CITY COUNCIL ACTIONS ON EDA REQUESTS.
a) Aroplax Corporation GMEF Loan No. 003 Koropchak
reported that at the July 8 City Council meeting, the
Council members reviewed the EDA approved GMEF Loan No.
003 for Aroplax Corporation. The council took no action
as they found the loan to be consistent with the GMEF
guidelines. Koropchak reported that the company is still
shopping for bank commi ttment wi th three banks expressing
strong interest, one of which, is a local lending
institution.
b) Annual Activity and Financial Reports Koropchak
reported that at the May 13 Council meeting, members
reviewed the reports and approved a motion acknowledging
the receipt and acceptance of the annual GMEF report.
c)
GMEF Guidelines and EDA Bylaws - Koropchak reported that
at the May 13 Council meeting, the Council approved a
motion amending the GMEF Guidelines and the EDA Bylaws as
recommended by the EDA. One job is equivalent of 37.5
hours per week, minimum fee of $200 but not to exceed
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1.5% of total loan project, the City Attorney shall
review and/or prepare all contracts, legal documents, and
intercredi tor agreements, and the EDA meeting time set at
7:00PM.
d)
UDAG Repayment Income Committment - Koropchak reported
that at the May 13 Council meeting, the Council approved
a motion authorizing a $90,000 commitment (only) of the
UDAG repayment income to the GMEF. The request by the
EDA was for an immediate appropriation commitment of
$90,000 with an annual appropriation commitment
thereafter of $27,000 over the next eight years.
Annual Appropriation of $200,000 GMEF Commitment
Koropchak reported that at the May 13 Council meeting,
the Council approved a motion authorizing an additional
appropriation commitment of $48,000 from the Liquor Fund
thereby meeting the EDA's goal of a $200,000 annual GMEF
appropriation.
e)
With the approval of the $30,000 GMEF for Aroplax Corporation,
with Council's approval of a $90,000 UDAG appropriation
commi tment (only) , wi th lending institutions greater
reluctance to approve commercial loans, and with the unknown
of 1992 GMEF Loan request; Barb Schwientek made a motion that
the EDA ask Mr. Wolfsteller to appropriate $100,000 for the
GMEF in the 1992 City Budget. The motion was seconded by Al
Larson and without further discussion the motion passed
unanimously.
4.
CONSIDERATION TO HEAR AND REVIEW GUIDELINE COMPATIBILITY AND
LEGAL ACCOUNTABILITY OF THE UDAG AND GMEF FUNDS.
The EDA reviewed Mr. Weingarden's letter in reference to the
GMEF Guidelines and noted the necessity of an adequate notice
for holding meetings open to the public in accordance with
Minnesota Statutes. Also, the EDA noted all GMEF applicants
have a right to be present throughout the meeting.
In reference to the GMEF Guidelines, Definition of Public
Purpose, Paragraph 3, Mr. Weingarden suggests that paragraph
3 be re-written as it currently appears to be anti-competitive
in nature. Suggestion as follows:
"To assist new or existing industrial or commercial
businesses to improve or expand their operations.
Consideration for loans shall take into account factors
including, but not limited to, the nature and extent of
the business, the product or service involved, the
present availability of the product or service wi thin the
City of Monticello, the compatibility of the proposed
business as it relates to the comprehensive plan and
existing zoning policies, and the potential for adverse
environmental effects of the business, if any."
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Bob Mosford made a motion for the EDA to amend the GMEF
Guidelines, Definition of Public Purpose, Paragraph 3, to read
as stated above and as written by Mr. Weingarden with
recommendation for the City Council to review and amend
accordingly. The motion was seconded by Al Larson and without
further discussion the motion passed unanimously. The motion
was passed because the EDA felt that Mr. Weingarden would be
in a better position to defend or represent the EDA or the
City if the necessity ever arose.
The EDA reviewed the letter from Mr. Weingarden in reference
to the use of the UDAG Funds. No action was taken.
5. CONSIDERATION OF AN UPDATE ON THE TWO GMEF LOANS.
Koropchak provided the EDA with a summary of the meeting held
between the Wright County State Bank, Tapper's Inc. and
herself. Lance summarized Tapper's first year of business in
Monticello as slow and tough due the economy, their move, and
their monthly lease payment of $3,000 for existing property in
St. Michael which ended June 1, 1991. All loan payments for
both Tapper's and Muller's are current.
6. OTHER BUSINESS.
None.
7.
ADJOURNMENT.
The EDA meeting adjourned at 8:00 PM.
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Ollie Koropchak, EDA Executive Director