REGULAR MEETING ECONOMIC DEVELOPMENT AUTHORITY May 11, 2012 12:00 NOON
PRESENT: Dean Janzen, Audi Nickel, Mark Hanson, Jerry Haberman, Steve Syverson, and Clara Johnson, Advisor. ABSENT: Brian Harder, Vern Peterson and Advisor, Jaque Radtke STAFF PRESENT: Marva Ott CITY ADMINISTRATOR: Wendy Meyer CITY ATTORNEY: Maryellen Suhrhoff GUESTS: Bill Anderson-Custom Motors at 12:15
1. Call to Order: Mark Hanson
2. Consent Agenda. Motion made and seconded by Dean and Jerry to approve the consent agenda as presented. Carried.
Mark closed the EDA meeting and opened the Public Hearing on the sale of the EDA property (Green Building) at 12:04.
3. Public Hearing: Mark read the terms of the sale to Tammy Engstrom in the amount of $17,500.00. No opposition was present in person or in writing. Mark closed the public hearing and reopened the EDA meeting. Motion was made and seconded by Audi and Steve to approve the sale to Tammy Engstrom as stated in the terms. Carried.
4. Lakeview Estates Spec House: The house construction has begun. Bryan Bargen has submitted a request for payment in the amount of $46,288.00. The board discussed the terms of the agreement and how the construction is to be paid for. There were several comments made and some confusion about this. Maryellen stated she would review the agreement and let the board know how this is to be set up. She thought the EDA would finance the construction with a loan to Bryan but she will check on this. Motion was made and seconded by Dean and Steve to approve the pay request. Carried. The other items discussed were advertizing, size of house, and Bargen’s proof of insurance which is now in place.
6. Good Sam project update: Wendy told the board that Rob showed the Eventide Suites building to a group from House of Hope which is a chemical treatment center. They are interested in utilizing the building and Good Sam is willing to give the building to them. There could be 20-30 jobs if this happens. Several questions were asked and items regarding the building were discussed. No action.
7. Custom Motors: Bill showed up and told the board that he potentially has a buyer for part of the business. He has hired an attorney to help him decide what his best options are. He gave the board his proposed plan of action and stated that he promises to get caught up on his loans and rent by June 10th. He will be paying part of the delinquency in May and the balance in June. He is asking the EDA to wait till their next meeting to give him time to discuss everything with his attorney before starting any foreclosure or eviction. He stated he has 2 interested buyers in the repair business. He told the board he appreciated their patience with him and he is committed to being caught up with the EDA. He would need to pay $12,641.00 for the two loans, rent and real estate taxes just to get caught up by June. Mark asked him about the inventory list and he stated that he would email it to Rob along with the asset list. The board asked Bill some questions about other loans he may have. Bill was excused from the meeting. The board discussed several options. Jerry made a motion to delay foreclosure till June 15th to see if he comes through with his promises. Dean seconded the motion. Carried. 8. General discussion: a. Mark talked about a municipal liquor store being a source of revenue for the city and wondered if we shouldn’t explore that. Several comments were made about it working for some cities and not for others. They also discussed it competing against a business already in town. No action taken. b. Next meeting is June 8th.
Meeting adjourned at 12:43.
Date: Signed: