HomeMy WebLinkAboutMay 2005 EDA Minutes16200 F_~gle Creek Avenue S.E.
Prior Lake, MN 55372-1714
PRIOR LAKE
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
May 2, 2005
Call to Order and Pledge of Allegiance
Present were President Zieska and Commissioners Haugen, Fleming, LeMair and Petersen,
Executive Director Boyles, EDA Attorney Pace, Economic Development Director Sullivan,
Secretary Green, and Paula Adoradio with Halleland, Lewis, Nilan & Johnson, P.A.
The meeting was called to order at 6:50 p.m. at the Fire Station City Council Chambers.
Approval of Minutes
MOTION BY HAUGEN, SECONDED BY PETERSEN TO APPROVE THE MINUTES OF THE
APRIL 18, 2005, MEETING AS PRESENTED.
VOTE: Ayes by Zieska, Fleming, Haugen, LeMair and Petersen. The motion carried.
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING PARTICIPATION IN THE TWIN CITIES
COMMUNITY CAPITAL FUND (TCCCF) FOR ECONOMIC DEVELOPMENT PURPOSES AND
ESTABLISHING THE CITY'S PARTICIPATION LEVEL.
John Sullivan presented the resolution and stated the fund would begin operating when an
initial $2 million capitalization goal is reached. Introduced Paula Adoradio of Halleland, Lewis,
Nilan & Johnson, who was available to answer any questions about her review of TCCCF.
Indicated language amendments would be made to section 9 and 10 regarding management
agreements.
Comments:
Fleming: No comment.
Petersen: With changes to section 9 and 10, would probably approve.
Haugen: Stated he would defer verbage to Counsel.
Adoradio: Language suggested for section 9 added a specific description of how expenses
would be reimbursed and documented. Language now states that TCCCF is required to keep
detailed records and that reimbursement would be within normal policies of the fund.
Language in section 10 would indemnify both the fund and each of its members for any
actions taken on behalf of the fund.
Pace: Asked about additional suggested language at the end about severability, governing
law, amendments and waivers.
LeMair: Asked Sullivan if he supported it.
Sullivan: There are issues and it would be nice to see all of City Attorney suggestions
incorporated. Approved that Martin has allowed sections 9 and 10 to be revised and has
confidence in the interim board - the program is admirable and can be of value to Prior Lake.
Zieska: Asked what other sources of finances does this EDA have for businesses that are
looking for assistance.
Sullivan: Tax increment financing, tax abatement, federal loans and grants, CDBG federal
block grants administered by the state, and private equity funds. TCCCF is a gap-type lending
www.cityofpriorlake.com
Phone 952.447.4230 / Fax952.447.4245
Economic Development Authority
Meeting Minutes
May 2, 2005
source to fill in between the first mortage lender, equity and whatever isn't there for loaned
value on the assets.
Zieska: Asked what kind of assets could be tapped into when making loans.
Sullivan: Ten times the amount.
Zieska: Asked if there is liability-other than losing $50,000.
Adoradio: Protection is greatly increased if we get the indemnification provision. Most
comments clarified what the role would be and how the fund would work and how government
of the fund would work.
Zieska: Asked if Prior Lake can join at a later date since not all concerns have been
addressed.
Fleming: Stated that he appreciates Mr. Martin's efforts to work with the EDA, but there are
still 15 business issues that have not been resolved.
Haugen: Not ready to approve.
Fleming: These 15 issues are serious enough that the EDA should not move ahead.
Zieska: Confirmed that the consensus of the ED^ board is to not take action.
Haugen: Staff and legal counsel should continue working with the other party toward
resolution of the issues identified.
MOTION BY FLEMING, SECONDED BY LEMAIR TO ADJOURN. With all members in favor,
the motion carried and the meeting adjourned at 7:08 p.m.
Frank Director
Boyles,
ar o e reen, ecording Secretary
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