EDA Minutes 01-29-1991cANNUAL MEETING MINUTES
M.ONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, January 29, 1991 - 7:00 AM
City Hall
MEMBERS PRESENT: Bob Mosford, Harvey Kendall, Al Larson, Brad
Fyle, Clint Herbst, and Barb Schwientek (tardy).
MEMBERS ABSENT: Ron Hoglund.
STAFF PRESENT: Rick Wolfsteller and 011ie Koropchak.
1. CALL TO ORDER.
In the absent of Chairperson Ron Hoglund and the tardiness of
Vice Chairperson Barb Schwientek, EDA Executive Director
Koropchak called the EDA meeting to order at 7:06 AM.
2. WELCOME TO NEW EDA MEMBERS.
With the appointment of Brad Fyle and Clint Herbst to the EDA
by Mayor Maus and the Council, Koropchak welcomed the new
council members and introductions between EDA members
occurred.
C3. APPROVAL OF THE OCTOBER 30. 1990 EDA MINUTES.
Harvey Kendall noted a typing correction be made on page three
of the EDA minutes, second to the bottom paragraph from 1/58
to 1.5%. With the above noted correction, Harvey Kendall made
a motion to approve the October 30, 1990 EDA minutes, seconded
by Al Larson, the minutes were approved as written and
corrected.
4. CONSIDERATION TO REVIEW AND ACCEPT THE 1990 EDA ANNUAL REPORT.
Koropchak explained to the EDA members that the process to
secure bank financing for an SBA loan has been altered for
startup or marginal companies. Previously, the SBA loan
application was completed prior to securing bank financing as
was in the case of the Eastey Company. Upon Mr. Pelstring's
advise, now the company applicate representatives, Mr.
Pelstring, and Koropchak meet with lending institutions
allowing the bank to hear the company's product concept and to
review preliminary financials or projections. This reduces
Mr. Pelstring's preparation time thereby reduces the cost to
the city.
By consensus of the EDA, the 1990 EDA Report was accepted.
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5. CONSIDERATION TO REVIEW AND ACCEPT THE 1990 EDA FINANCIAL
REPORT.
At the time of EDA establishment, the City Council commited to
transfer of $200,000 from the City Liquor Store Fund with a
maximum loan request of one-half the GMEF remaining balance.
EDA Treasurer Wolfsteller noted the two GMEF loans approved in
1990 for Tapper's Inc at $88,000 and the Muller Theatre at
$50,000 on the Year End Report. Interest earned on each loan
was noted with expenses of loan service fees and legal fees
also being noted. Harvey Kendall asked where the
accountability of the remaining $62,000 Council commitment was
shown. On this report it wasn't shown. Bob Mosford asked if
the EDA loan fee was waived on both loans since no income was
recorded on the report. Koropchak indicated yes to the
Tapper's loan and questioned the waiving of the Muller loan
fee. The EDA members recalled their previous discussion to
negotiate reduction of the bank service fees as this is a
cooperative effort for the good of the community. EDA members
requested Mr. Wolfsteller to contact the local banks regarding
reduction of the service fees.
The EDA further discussed the availability of additional
L transfer funds as with the proposed request of $30,000 GMEF
from Axoplax, the remaining fund balance would be $32,000
thereby allowing a maximum loan request of $16,000. Without
a pre -Council authorization of additional transfer funds, the
EDA available funds becomes like a path down a blind alley,
Barb Schwientek expressed. Meaning Koropchak has no
substantial amount of funds to market. The UDAG repayments
from the Fulfillment Systems, Inc. loan has a balance of
approximately $80,000 currently. Approximate total repayment
over the next ten years will be $250,000 which was earmarked
for economic development. Mr. Wolfsteller informed the EDA
that City Council authorization would be necessary for use of
the UDAG funds as the City Council originally authorized the
loan. The UDAG loan is a federal loan of which a City retains
the paybacks. Upon the request of Harvey Kendall and by EDA
concensus, Koropchak will research the background of the UDAG
and its permissible alternative uses for the next EDA agenda,
this to earmark funds and request City Council authorization.
Upon further discussion, the EDA agreed upon a needed
remaining minimum $100,000 GMEF balance which would be
available for loan request. Al Larson made a motion
recommending City Council authorize a commitment of a
remaining minimum $100,000 GMEF balance. Barb Schwlentek
seconded the motion and without further discussion the motion
Cpassed 6-0.
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Bob Mosford volunteered to assistaees Mr. Wolfsteller with
setting of the EDA Financial Report consistent to accounting
procedures. Harvey Kendall made a motion to accept the 1990
EDA Financial Report as revised with Mr. Mosford's assistance.
Seconded by Al Larson and without further discussion the
report was accepted.
6. CONSIDERATION TO ELECT 1991 EDA OFFICERS.
In accordance with the EDA Bylaws, the officers must be
elected at the annual meeting. Koropchak informed members
that Ron Hoglund had been contacted prior to this meeting to
confirm his willingness to remain EDA President of which he
confirmed. With the acknowledgement of other EDA officers
willing to retain their office, Al Larson made a motion to
elect 1991 EDA officers as follows: Ron Hoglund, President;
Barb Schwientek, Vice President; Rick Wolfsteller, Treasurer;
Bob Mosford, Assistant Treasurer; and 011ie Koropchak,
Secretary. Harvey Kendall seconded the motion and without
further discussion the motion passed 6-0.
7. OTHER BUSINESS.
L Koropchak informed the EDA of the proposed GMEF request from
Axoplax. The company's total financial package will consist
of bank, SBA, TIF, and GMEF participation. The forty year old
family business manufactures plastic injection molding. The
company has talked to their bank which indicates an interest
to participate. The company would relocate from the metro
area to allow production, receiving, and shipping on one
level. The company employs 20-25 personnel at a semiskilled
wage level. BDS, Inc.; Koropchak; and the company will meet
this Friday to detail financing process.
As previous EDA minutes indicate, upon appointment of the new
City Council representatives, the EDA members will discuss the
possibility to change the EDA meeting time. With EDA members
in agreement, Al Larson made a motion to amend the EDA Bylaws
changing the EDA meeting time from 7:00 A.M. to 7:00 P.M.
Seconded by Barb Schwientek and without further discussion the
motion passed 6-0.
Koropchak informed the EDA members of the City Council's lack
of support to second the motion to amend the GMEF Guidelines
as recommended by the EDA at their October 30, 1990 meeting.
The EDA elected to further discuss this issue at the next
regular scheduled EDA meeting with possible revised
recommendations to the Council along with the request for the
commitment of remaining minimum $100,000 GMEF balance.
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ADJOURNMENT.
Harvey Kendall made a motion to adjourn the EDA meeting, Al
Larson seconded the motion, and the EDA meeting adjourned at
8:06 AM.
( A c. \<McQ n +��
011ie Koropchak, EDA Secretary
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