EDA Minutes 01-20-1998MINUTES
C MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, January 10, 1998 - 3:00 p.m.
City Hall
MEMBERS PRESENT: Chair Ron Hoglund, Vice Chair Barb Schwientek, Assistant
Treasurer Ken Maus, and Clint Herbst.
MEMBERS ABSENT: Roger Carlson, Bill Demeules, and Darrin Lahr.
STAFF: 01 ie Koropchak
GUESTS: Eric and Carl Bondhus, Lake Tool, Inc.
Chad Vitzthum, Marquette Bank
Rite Uhich, MCP
Call to oyer.
Chair Hoglund called the EDA meeting to order at 5:05 p.m.
2. Consideration to app= the October 21 1997 EDA mirrutes.
Barb Schwientek made a motion to approve the October 21, 1998 EDA minutes. Clint
Herbst seconded the motion and with no corrections or additions, the mimnes were
approved as written.
3. Consideration to rc%dew for {{aorova the RMLmina QMFF loan apRli n ion for Lak
Tool- Inc
Eric Bondhus informed EDA members that they received appraisals on all the used
equipment and with the exception of the super -max, all the equipment is one-year old.
T.J. Martin, Inc. will purchase the equipment and lease to Lake Tool as an insurance
against product liability. The new injection molds are larger in size to accommodate the
customer's need which represents 25% of their customers. Their sales force consist of
themselves by industry word-of-mouth and some trade shows. Marketing strengths are
price and on-time delivery. Purchase of the new equipment will double Lake Tool's
capabilities. Of their eleven moldmakers some lived in Monticello and worked in the cities
or lived and worked in the Delano area. Additional to the listed equipment the company
has received quotes on a new Fandel.
Chad V=hum, Marquette Bank, requested the EDA structure the 7 -year GMEF loan
with interest payback only for the first two years and principal and interest payback
EDA MINUTES
JANUARY 20, 1998
over the last five years. The preserved dollars would be used as the equity position for
SBA approval. This would be equity riot debt.
Koropchak reviewed the GMEF application against the GMEF Guidelines and noted the
recommendations. Commissioners received a list of the equipment for funding and letter
from Marquette Bank verifying "gap financing" criteria and noting the credit riskof the
company is considered reasonable based on information received to date. The EDA aslo
received copies of the financial statements.
EDA members determined the application encouraged economic development and the
proposed purchase of machinery and equipment and the application complied with the
GMEF public purpose criteria and policies. Barb Schwientek made a motion to approve
GMEF Loan No. 014 for T.J. Martin, Inc. in the amount of $87,500. Terms of the M&E
loan at a 6.5% fixed rate with an amortized schedule as such: Interest payback over 7
years or 84 months and principal payback over last 5 years or 60 months. The GMEF
loan is in a subordinated position behind Marquette and SBA on all machinery/equipment.
Loan fee is $200 paid at time of closing. GMEF No. 014 becomes null and void July 20,
1998 if approved funds are not disbursed. Collateral, guarantees, and other condition
Crequirements to be determined and prepared by the GMEF attorney. Loan approval
subject to lender and SBA approval. Clint Herbst second the motion and with no further
discussion, the motion passed unanimously. City Council will be requested to ratify the
EDA's approval of GMEF No. 014 on January 26, 1998.
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The October 1, 1997, DMRF application from Kathy Froslie did not include a request for
fee reimbursement therefore was the request now before the EDA. Based on the permit
fee total and certification of payment in the amount of $1,764.50, Barb Schwiemek made
a motion to approve DMRF in the amount of $500 for reimbursement fees at 103 Pine
Street (Going -in -Style). Seconded by Ken Maus and with no further discussion, the
motion passed unanimously.
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Report was accepted.
EDA MINUTES
JANUARY 20, 1998
T. Other "aess:
Maus indicated he would be out-of-town for a week and Herbst Febnuuy 19 through 28.
Koropchek informed the EDA commissioners that DAT reviewed and found the rear
(north) facade of the building located at 103 Cine Street to be completed per DAT
the appEcam elected not to complete the work on the side (east)
facade, and found the front (south) facade improvements incomplete per approved DAT
recommendations. Upon suMnitting certification of payment for the rear facade
improvement costs, a check will be issued.
8.
The EDA meeting adjourned at 6:00 p.m.
011ie Koropchak, Executive Director
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