Regular Meeting s15

REGULAR MEETING ECONOMIC DEVELOPMENT AUTHORITY October 14, 2011 12:00 NOON

PRESENT: Dean Janzen, Jaque Radtke, Advisory, Audi Nickel, Vern Peterson, Brian Harder, Jerry Haberman, Steve Syverson and Clara Johnson, Advisory ABSENT: Mark Hanson, STAFF PRESENT: Rob Anderson and Marva Ott CITY ADMINISTRATOR: Wendy Meyer

1. Call to Order: Vern Peterson

2. Consent Agenda. Motion was made by Dean and seconded by Brian to approve the consent agenda. Carried.

3. Falk Station (Nicole Zich) rent delinquency: Nikki is 4 months behind on rent. Several attempts have been made to contact her. No response. Motion made by Brian to send a registered letter to her notifying her that she has 10 days to make rent current or we will start eviction proceedings. Jerry seconded the motion. We should also have her sign a release for us to contact the utilities to make sure they don’t get shut off. Carried.

3. Custom Motors: Rob explained that Bill has paid everything he promised last month except the October payment. Bill said he will pay taxes on Monday the 17th and have our October payment to us by next week. No action taken.

4. BB’s Diner request for extension: Rob stated that the consultant still is working with them to get to the point of refinancing with the bank. There have been several delays but the plan is almost ready to go to the bank. They are requesting another 90 days extension to start making payments. Dean made a motion to grant the extension and Brian seconded the motion. The board would like to see interest payments made but the note is a 0% interest note. Motion carried. Steve abstained from the vote.

5. Good Samaritan Society of Mt. Lake Assisted Living Project Update: Rob reported that it is still moving forward. They are trying to get approval for financing and they should know by the end of October. They are getting cost projections together and they could start construction in the spring. Several things still need to happen before construction begins. No action taken.

6. BR&E lunch for businesses: Rob handed out an overview and reviewed it with the board. Vern commended the EDA for doing these business luncheons and thinks we should continue doing them. The board agreed it was a good way to keep in touch with the businesses.

7. Conestoga Building: Rob spoke with Rick Hander about the building issues, HVAC problems and dock issue and listened to Rick’s suggestions. The dock leveling issues were also discussed. The board asked if MSC was interested in purchasing the building but Rob stated that they were not. There was discussion about Bargen possibly needing a bigger building and that they want to be on the highway and also about MSC. The board discussed how to keep both businesses happy. The board also discussed the dock leveling issue and that we need to re do the lease with MSC to include the cost of that. Cost estimates are being put together. The construction committee will meet with MSC once they have the estimates to decide what needs to be included in the lease. No action taken.

8. Kennel-Aire building proposal: Mark Hanson put together a proposal for the building as a realtor of record if the EDA would consider buying the building. Net cost would be $150,440.00 for the EDA with Kennel-Aire doing a tax write off for $261,000.00. No business wants the building at the current time and there are problems with the building that would need to be addressed including water damage from a bad roof on part of the building. There are some options that we could consider to fund the purchase including a grant fund from DEED and also could bond for public money and general money for private entities to utilize for repairing the roof. The board felt we needed to get cost estimates on the roof repair first and also see if Kennel-Aire would consider lowering their price so the board will wait to see what happens before they commit to buying the building at the current time. No action taken.

9. Lakeview Estates: a. Rick Hander would like to repurchase the lot he previously had on a contract for deed. The EDA’s cost for legal fees was $302.00 and we could recoup that from Rick with a new contract. Rick would prefer to pay all the assessments instead of having to build within 1 year. Jerry made a motion to add the legal costs to the new contract and sell it back to Rick with the same terms as the previous contract. Audi seconded the motion. Carried. b. Farmland appraisal: The appraisal was too high on the 23.73 acres. To sell the land we need to have a public hearing. The board felt we should ask for bids on the land and sell it. Brian made a motion to hold a public hearing at our next board meeting and advertize the land for sale for bids. Audi seconded the motion. Jerry abstained from the vote. Motion carried. Jerry will be reimbursed for any fall tillage that he does before the sale.

10. General Discussion: a). Next meeting is on a holiday so meeting will be moved to November 4th instead. b.) Mt. Lake Fitness is requesting that we move their payment date from the 1st to the 20th of the month and they will do an auto pay then. Motion made and seconded by Audi and Brian to approve their request. Carried. The electrical bills are twice as high as when Care & Share was in the building and Mt. lake Fitness is requesting EDA help with replacing lights and HVAC. The construction committee will meet with him about this. c.) Care & Share would like to use the Marston (Green) building for 2 months for Christmas for no rent but they will pay utilities. Motion made and seconded by Steve and Audi to approve their request. Carried.

Meeting adjourned.

Date: Signed: