02-18-2003 CC MIN - Laserfiche WebLink

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City Council Minutes February 18, 2003 ............................. E. Utilities Commission · Jerome Takle - New Applicant - Present · Mark Peterson - New Applicant - Present · Ronald Touchette - New Applicant - Present Page 4 Councilmember Dietz stated that Mark Peterson's employment with Great River Energy could be a conflict of interest because they are a supplier of electricity to the City. City Attorney Peter Beck noted that according to the City's ordinance, Mr. Peterson's employment would be considered a conflict of interest and therefore he should not be considered for appointment to the Utilities Commission. Mayor Klinzing suggested that the City's conflict of interest standards be added to the application for boards and commissions. The Council recessed at 7:50 p.m. and reconvened at 8:00 p.m. 4.6. Consider Minnesota Investment Fund Grant Application for Sportech Expansion Director of Economic Development Catherine Mehelich indicated that Sportech is considering an expansion project, which includes $750,000 for a 20,000 square foot light industrial facility to house a screen-printing operation, and $250,000 for the purchase of equipment necessary for the manufacturing and screen-printing operation. There is however, a gap in the amount of financing needed and the amount available from the lender. Catherine explained that staff and Sportech are considering the possibility of using Minnesota Department of Trade & Economic Development MN Investment Fund as a financing source to close the financing gap. She explained that the City could apply for up to $200,000 in federal grant dollars, which the City would then provide a loan in the same amount to the company toward equipment financing. She stated that as the loan is paid back to the City over a period of 7 to 10 years, the City is able to retain the full $200,000 to be used as a revolving loan fund for economic development purposes. Chris Carlson, CEO of Sportech, Inc. was present. He spoke about his business and the expansion. Councilmember Motin disclosed that although he has done legal work for Chris, he does not consider it a conflict of interest. COUNCILMEMBER TVEITE MOVED TO AUTHORIZE STAFF TO PROCEED WITH AN APPLICATION TO THE DTED MN INVESTMENT FUND GRANT IN THE AMOUNT OF $200,000 TO ASSIST WITH A LOAN FOR THE SPORTECH, INC. BUSINESS EXPANSION PROJECT. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.5. Libra~ Cleaning Contract Street Park Superintendent Phil Hals informed the Council that staff is recommending terminating cleaning services at the Library provided by Options, Inc. He recommended that the Library cleaning be contracted with Toni Karpe, who provides the cleaning services for City Hall and Lions Park Center.