Regular Meeting s16

REGULAR MEETING ECONOMIC DEVELOPMENT AUTHORITY January 11, 2013 12:00 Noon

PRESENT: Dean Janzen, Mark Hanson, Brian Harder, Audi Nickel, Steve Syverson, Vern Peterson, and Clara Johnson and Deb Englund, Advisors. ABSENT: Jerry Haberman STAFF PRESENT: Rob Anderson and Marva Ott CITY ADMINISTRATOR: Wendy Meyer GUESTS: Bill Anderson-Custom Motors, Cheryl Hiebert-0/A

1. Call to Order: Mark Hanson

2. Consent Agenda. Additional bills were presented in the amounts of $50, $250, and 116.93. Motion made and seconded by Dean and Vern to approve the consent agenda with the additional bills. Carried.

3. Cheryl was there to take a picture of the EDA board for the Chamber’s VOQ but since Jerry wasn’t there yet, the board moved on to Bill Anderson.

4. Bill Anderson of Custom Motors: Bill told the board he filed bankruptcy (Chapter 13 on his business and personal. All papers will be submitted today and he is now the lone shareholder in the Custom Motors Corporation. He stated that 2.1 million will be forgiven by his former partners. He won’t owe anyone except the EDA and the government. He has a balloon payment on the EDA loan which is due in April. He is wondering if the EDA would re-do the loan. He said the bankruptcy court will do it if we don’t and set the scheduled payment portion to us. Bill would have 5 years to pay off the debt on these loans or debts. After some discussion, the board wanted to know what the payment amount would be so we can determine the amortization schedule. Bill thought we should know within a week that amount. Bill stated that the rent will be caught up on this coming Monday. No other questions for Bill so he was excused from the meeting.

5. Rob stated that the Chamber board chose the EDA board as their Volunteer of the Quarter. Cheryl asked the board questions about their terms, etc and then took a picture of the group. Jerry was not in attendance. 6. Election of Officers: Current Chair and Vice-Chair are Mark Hanson and Vern Peterson. Brian made a motion to keep the same officers and Audi seconded the motion. Motion carried. 7. 2012 Work Plan: Rob told the board that we had a good year. He stated that for 2013 he thought the business retention and expansion luncheon should be changed to a more structured business visit as businesses are just too busy to do the luncheon. Vern suggested that we keep the Eventide building as a high priority. Motion was made and seconded by Audi and Vern to approve the 2012 work plan as presented. Vern asked about the telephone building and if there was something that we could do with rehab money to help get this building usable. He suggested we add this as a goal for 2013. Motion carried.

8. Falk Station: Rob stated that the lease will expire on February 28th unless Nicole lets us know that she wants to continue. She is currently behind on rent again. She has told Rob that she doesn’t want to continue leasing the building but she asked if we would be willing to sell it. Rob stated that he spoke with Brad Bargen and he is still interested in seeing the building turned into a malt shop but his daughter is no longer interested in it. He stated that he would be willing to finance this project. The market value on the property/building is $4,600.00. Discussion ensued about selling the property including the amount we want for it and putting it up for bids. The board decided that the minimum bid would have to be $5,000.00 cash. After more discussion a motion was made and seconded by Brian and Dean to offer the building up for sale with a minimum bid of $5,000.00 cash with the opportunity to raise their bids after the bid opening. We will advertise this in the paper and have the public hearing and bid opening at our next meeting on February 8th. Motion carried. A question was asked about how much Nicole owes us and Rob stated that with the rent and gas bill, it is a total of $170.44. After more discussion, a motion was made and seconded by Steve and Audi to cancel the lease with Nicole at the end of February. Motion carried.

9. Eventide Building: The party that is interested in the building took a tour of it and they were very interested in it especially the memory care wing. They don’t want to own the building, just lease it. Their current lease will expire next fall. The group that did the new Lodge of Mt. Lake may be interested in owning the old building. Vern thought we should contact House of Hope to see if they are at all interested in the building yet and also contact Bill Freitag. The Lodge is on schedule and completion is expected to be early to mid March.

10. Lakeview Estates: Closing took place on the Crawford spec house and the net we received from that sale was $177,988.50. The corrective deeds have all now been done on the property.

11. Mt. Lake Fitness property issues: Rob told the board that we received a notice that he didn’t pay all his real estate taxes for some reason. Scott told Rob he must have paid the wrong amount but that he would take care of it right away. Rob also stated that the property has been unsecured for quite some time as the lock doesn’t work. Also we have received several complaints from individuals about the place being dirty, cold, no clean towels and equipment not working properly. Supposedly Scott is working on getting someone to take care of this. He is also interested in selling the business. Mark stated that he may know of someone who would be interested in taking it over if they can assume Scott’s loan. Mark will follow up with this person.

12. General: (a. Balzer deal is now done on the Kennel-Aire building. An employee of Balzer stated that they may move the paint room over to the front part of the Kennel-Aire building. (b. Country Pride building (former Tim Klassen) is again on the market for sale. (c. Chamber usually gives $25 in chamber bucks to VOQ recipients. The board directed Rob to give it to the food shelf. (d. Heritage Estates blind quote: Marva explained that the living room and dining room blinds at Heritage estates are getting bad and some are not working at all. She got a quote from K&R decorating in St. James for replacing all units for those windows. They are the people who did Mason Manor blinds. Discussion ensued about getting someone in town to do it, who did the original blinds etc. The board also discussed possibly building another building. Marva stated that most people on her list were more interested in Heritage Estates than they were in Mason Manor. The decision was to let the construction committee explore this again. A motion was made and seconded by Brian and Audi to approve the new blinds for Heritage Estates as quoted. Carried. (e. More discussion continued on Custom Motors. No action.

13. Next meeting is February 8th.

14. Meeting Adjourned

Date: Signed: