The May 21, 2012 EDA Meeting Was Called to Order by Chair Paul Pieschel at 4:00 PM

EDA MINUTES

MAY 21, 2012

4:00 PM

The May 21, 2012 EDA meeting was called to order by Chair Paul Pieschel at 4:00 PM. Those present include Pieschel, Ben Luense, Doris Weber, Steve Bryce, Ken Bishir, Mike Rothmeier, City Attorney Paul Muske, City Manager/EDA Director Mac Tilberg and City ClerkAmy Vogel. Absent was Barb Jones.

Motion by Luense, second by Rothmeier to approve the April 16, 2012 meeting. All ayes.

Rothmeier questioned the number of times that Gary Groebner has mowed the 4-plex properties. He noted that it has been mowed five times since the beginning of May. He asked if once a week would be sufficient to keep expenses lower. He believes the quality of work and the price per hour is okay, just how often it gets mowed. Tilberg stated that a copy of Groebner’s hours should be put in the packet each month. Motion by Luense, second by Rothmeier to approve payment of the audited claims. All ayes.

Muske stated that the $5,000 due to the Community Center should be taken off the balance sheet due to the fact that the EDA has acquired ownership of the stocks. The Community Center has to approve the write-off of the debt. This debt came from a private donation to the Community Center to be used towards hotel stock. Motion by Luense, second by Weber to request the Community Center to write off the $5,000 debt from the EDA. All ayes.

Motion by Weber, second by Rothmeier to approve the financial report. All ayes.

The loan report was reviewed. The satisfaction of mortgage was done on Absolute Style and one has to be done for Dr Roscoe. Tilberg should send a letter to Jim and Ruby Potter on their loan delinquency. Video Box Office has requested a renewal on their loan for ten years with a 5 year balloon and payments at $100 per month.

Motion by Rothmeier, second by Weber to extend the Video Box Office loan for 1 year with interest at 4%, $100 monthly payment, doing a modification of mortgage with all being contingent on all loan documents being received. The date on the note will be the last payment date. All ayes.

The EDA is the sole owner of the Microtel franchise. New language in the franchise agreement allows the EDA to be released from the franchise in seven years. Tilberg asked about privately placed revenue bonds to lower the Microtel’s debt load by decreasing interest. The lower interest rate saves cash to retire debt. To sell/buy bonds the EDA has to own and operate the hotel. Employees would be employed by the EDA. A manager can be hired. It is believed that about $720,000 worth of bonds would pay off all debt except the EDA’s. A repair and maintenance reserve account has been placed in the agreement. The percentage of room sales may be too high to start with.

Clements Lumber has requested tax abatement but not an EDA loan. They have not furnished any application or company information. Information on the old value and the new value would also be needed. Tilberg is representing them today since they were unable to attend. He noted that they are fulfilling a need in the community by creating jobs. An abatement plan is needed for the EDA meeting in June for further discussion. The council meeting would follow the EDA meeting. Motion by Luense, second by Weber to approve moving ahead with tax abatement proposal for consideration at the June meetings. Ayes – Luense, Weber, Bryce, Bishir. Abstain – Pieschel and Rothmeier. Motion passed.

Pieschel left the meeting at 4:50 PM and turned the meeting over to Vice Chair Luense.

As for the bonds for the Springfield Lodging loans, a development term sheet will be presented to interested buyers. They want to get the debt down to what the property is valued at. Motion by Rothmeier, second by Luense to authorize moving forward with developing a term sheet to purchase bonds to pay down the debt. All ayes.

Motion by Rothmeier, second by Weber to adjourn at 5:05 PM. All ayes.

Submitted by City Clerk Amy A. Vogel