EDA Minutes 10-28-1992
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, October 28, 1992 - 7:00 p.m.
City HaLl
i'1EMBERS PRESENT:
Chairperson Ron Hoglund. Vice Chairperson Barb
Schwientek, Assistant'-'Tl'easurer Bob Mosford.
Clint Herbst, Harvey Kendall, and Al Larson.
MEMBER ABSENT:
Brad Pyle.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Treasurer Rick Wolfsteller and Jeff O'Neill.
1. QALL TO ORDER.
Chairperson Hoglund called the EDA meeting to order at 7:00
p.m.
2. CONSIDERATION TO APPROVE THE JULY 21, 1992 EDA MINUTES.
Barb Schwientek made a motion to approve the July 21, 1992 EDA
minutes, seconded by Al Larson, and with no corrections or
additions the minutes were approved as written.
3.
CONSIDERATION TO RATIFY EARLY DISBURSEMENT OF GMEF LOAN NC.
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004.
Upon the Barger's request for early disbursement of approved
GMEF Loan No. 004 (prior to bank closing) for acquisition of
lands, Koropchak contacted EDA members via the phonE: J. U{
authorization. Five EDA member gave authorization for early
disbursement, Brad Fyle declined, and Harvey Kendall was n(lt
reached. Upon City Attorney Weingarden's advice, the EDA is
asked to formally ratify the early disbursement.
Bob Mosford made a motion ratifying the early disbursement of
approved GMEF No. 004 for land acquisition. Al Larson
seconded the motion and without further discussion the motion
passed unanimously. Early disbursement was granted to allow
construction to begin thereby enhancing scheduled completion
date of the new facility and allowing possession date of the
existing facility in Rogers to occur as agreed upon.
4. CONSIDERATION TO REVIEW_EDA LEGAL FEES ASSOCIATED WITH GMEF
LOANS.
of the $150, $2,800, and $290 legal fees from Mr.
for the Barger project I the EDA requested Ml'.
itemize the October 2:3 bi 11 1ng and bi 1.1
It was the EDA's opinion that title matters,
Upon review
Weingarden
v~eingarden
accol"dingly.
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EDA MINUTES
OCTOBER 28, 1992
PAGE 2
sign issues, 6nd pJatting costs were not the obligation of the
EDA. The Ci ty Attorney I s role is to review GMEF closing
transactions. They questioned who gave Mr. Weingarden the
authorization to proceed on the EDA's behalf. The EDA members
agreed that the GMEF was created for gap funding (a benefit to
the company) and was not intended to be a large expenditure of
the EDA or' of the GMEF recipient. Addi tionall y, members
viewed the not-to-exceed 1.5% loan fee as a charge for
servicing the GMEF loan much as a bank charges.
The EDA did agree and saw merit for the BRA and the EDA to use
the same attorney for continuity, understandability, and cost
effectiveness. The EDA recommended researching the cost of
working with John Dean, Holmes & Graven.
5. ~O~~IDEBA~ION TO DEFINE FUNDABLE COSTS UNDER THE GMEF USE OF
PROCEEDS.
Koropchak asked EDA members for a clearer definition of
fundable costs under the GMEF guidelines. It was Koropchak's
understanding that construction loans generally do not cover
soft costs such as appraisals, legal fees, etc. Mr. Mosford
said he would prepare a guide for Koropchak and the EDA.
responded that the machinery and equipment must apply to
production or manufacturing.
6.
CONSIDERATIOp TO DISCUSS )993 GMEF BUDGET.
Koropchak presented EDA members with a summary of the GMEF
appropriations and loans stating the current remaining GMEF
balance is $85,000 and suggested for recordable purposes the
EDA make a motion requesting a 1993 Liquor Fund Appropriation
of $115,000. It was the EDA's opinion that the request was
unnecessary as they felt the annual request was a standing
request until such time the GMEF was self-sufficient therefore
no request was made.
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OTHER BUSINESS.
None.
8. ADJOURNMENT.
The EDA meeting adjourned at 8:15 p.m.
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