EDA Minutes 06-18-2002
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, June 18,2002 - 4:00 p.m.
City Hall - Academy Room
MEMBERS PRESENT:
Chair Bill Demeules, Assist Treasurer Ken Maus, Roger Carlson,
and Ron Hoglund.
MEMBERS ABSENT:
Vice Chair Barb Schwientek, Clint Herbst, and Darrin Lahr.
ST'AFf PRESENT: Executive Director Ollie Koropchak.
GUESTS:
Lance Hoi1kopf, Genereux Fine Wood Products, Inc.
Al Loch and Karen Schneider.
1 . Call to Order.
Chair Demeules called the EDA meeting to order at 4: 15 p.m.
2.
Consideration to approve the April 23, 2002 EDA minutes.
Roger Carlson made a motion to approve the April 23, 2002 EDA minutes. Ron Ifoglund
seconded the motion and with no correction)' or additions. the rninutes 1vere approved as
wriUen.
3.
Consideration of addin!2: or removing agenda items.
With the remaining balance ($39,127.72) for GMEF Loan No. 010 paid-off by Hlue Chip
Development Company (Vector Tool) on May 20, 2002, the EDA is requested to approve
two Satisfaction of Mortgages relating to the loan. Ron Hoglund made a motion to
approve the Sati,~faclion olMortgagesfor Blue Chip Development Company, the
mortgagor: !lIortgage/iled October 13, 1992. and the Amended Mortgage filed
Novemher 17, 1992. Mortgage filed Novemher 28. 1995. Ken Maus seconded the
motion and 1vith no fitrther discussion. the motion carried.
4. Consideration to hear an update from property owners ofBIock 35.
Al Loch and Karen Schneider, property owners, on Block 35 reported that the
arrangement between the eity and property owners for 2001/02 snow removal worked
well. The property owners had a joint snow removal arrangement which provided the
service at a lower eost and the city plowed the alley. March and April had heavier snow
falls; however, there was no iee built-up. Commissioners did recognize the unknown
future of the Grassl lot and the roof drainage problems. [,och remembered the proposed
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EDA Minutes - 6/18/02
parking abutting the south edge of the alley. Via Koropchak, Wojchouski noted the need
for a parking monument at Third Street and Pine Street. With the planned County Road
75 project to begin in July, the property owners and commissioners agreed to delay any
improvements to the 810ck 35 alley or area until completion of County Rd 75 or 2003.
Loch would contact Steve Grittman relative to the proposed design options. EDA
members thanked the property owners for the update.
5.
Consideration to review for discussion the preliminary GMEF loan application for
Double Bull Archery, Inc.
Double Bull Archery, a seven-year old, local company, is requesting a $50,000 GMEF
loan to purchase the Lake Tool, Inc. building located at 1347 Dundas Circle from Eric
and Carl Bondhus. The company has a Letter ofIntent to purchase the facility. Double
Bull Archery designs and makes ground blinds for the hunting industry. They plan to
consolidate their Monticello and Elk River production lines into one facility creating an
additional 5 full-time jobs in Monticello. Currently, they employ 9 full-time people.
A letter of credit worthiness was provided by the lender; however, no letter of financial
commitment from the lender, James Vathing, Associated Minnesota Bank, St. Louis Park
has been submitted. Koropchak then reviewed the preliminary loan application for
compliance with the EDA-GMEF Guidelines. Koropchak advised the EDA, the National
Bank of Minneapolis prime rate as of June 18, 2002, is 4.75%. No action was necessary
by the EDA.
6.
Consideration to approve or deny GMEF No. 020 for Double Bull Archery, Inc.
Having determined that the preliminary real property acquisition loan application from
Double Bull Archery encouraged economic development and complied with the EDA
Business Subsidy Criteria, Ken Maus made a motion to approve GMHF No. 020for
DOl/hIe Bull. LLe, in the amount of'$50, 000. The real property acquisition loan at
2. 75%fixed interest rate, amortized over 20 years 'Yvith halloon infive years. Loanfcc qf'
S200. Loan he comes null and void December 18, 2002, iffimds are not dishursed
GMEF legalfi:.~es re,~ponsibility oj'the applicant. Collateral, guarantees and other
condition requirements to be determined and prepared hy the GMf,'F Attorney. The
GMEF loan approval is sul~iect to lender commitment and Council ratification (~lthe
EDA action. Seconded hy Roger Carlson and with nofilrthcr discussion, the motion
carried. City Council to consider EDA action on June 24, 2002.
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EDA Minutes - 6/18/02
7.
Consideration to review for discussion the preliminarv GMEF loan application for
Tapper's, Inc.
Lancc Hoftkopf of Genereux fine Wood Products attended the EDA representing
Tapper's Inc. Tapper's, Inc. is requesting a $55,000 GMEF loan for equipment purchases
to take advantage of computcr design software which interface with CNC equipment.
Purchase of the equipment will incrcase full-time employment by 6, this in addition to
their current 58 full-time employees. The company was cstablished in 1984 and moved
to Monticello in 1990. The company was previously approved for two GMEF loans of
which both balloon paymcnts have been paid-otT. Thcir lender, Steve Domine, Stearns
Bank, St. Cloud, submittcd a letter of credit worthincss and commitmcnt to finance the
machinery/equipmcnt. Koropchak reviewed prcliminary application for compliance
and noted that the amount of cquity was reduced to the 10% of the EDA loan per the
lcnder, as the lender did not requirc cquity in the amount of20% of the bank loan. It is
anticipated the loan will close in Scptcmber. Again, National Bank of Minncapolis prime
rate as of June 18,2002, is 4.750;;>. No action necessary by the EDA.
8.
Considcration to am1fove or deny GMEf No. 021 for Tapper's, Inc.
I-laving determined that the prcliminary machinery/cquipment loan application from
Tappcr's Inc. encouraged economic dcvclopment and complied with the EDA Business
Subsidy Criteria, Ken Maus made a motion to approve GMFF [,oan No. U2I fc)!< Tapper's
Inc. in the amount of'$55, 000. The machinery/equipment loan to he amortized over 5
}'ears at afixed interest rate of2, 75%. I.oanfee of$20o. I.oan he comes null and void {f'
fimds not dishursed hy December 18,2002. GMEF legalfees the responsihility (~/'lhe
applicant. Collateral, guarantees, and other conditions to he determined hy the RDA
At/orney. GMEF loan approval is suhject to Council ratification of the RDA action.
Ron Hoglund seconded the motion and with nofilrther discussion, the motion carried.
Mcmbers noted Tapper's past succcss record with the EI)A. Council will consider the
EDA action on June 24, 2002.
9.
Executive Director's Report.
a) Noted the revised FDA Balance Sheet of Deccmber 31, 2001, rclative to the 2001
Liquor Fund rcilnbursement as suggestcd by EDA.
b) Notcd lcttcr to Bruce and Cindy Hamond relative to non-performancc date of May 29,
2002 for DMRF Grant No. III as suggestcd by EDA.
c) 'rlF process in progress for the LIMC and Production Stamping projects. GMEF loan
application submitted in August.
d) Working with two other industries.
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EDA Minutes - 6/18/02
10. Other Business.
None.
11. Adjournment.
Ken Maus recommended the EDA meeting adjourn. Meeting so adjourned.
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Ollie Koropchak, Recorder
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