HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 06/21/1988 ECONOMIC DEVELOPMENT CORPORATION
June 21 , 1988
The meeting was called to order at 7:00 a.m. by Chairman of the Board/Berne Biteman.
Board Members Present: Berne Biteman
Steve Dowell
Ted Knapp
Officers: Sandra Driscoll , General Counsel
Tony McCarthy, Treasurer
Marie Jensen, Secretary
Also Present: Brent McFall , City Administrator
MINUTES
Dowell moved to approve the minutes of the meeting of April 21 1988. Knapp
seconded and the motion carried.
VENTURE CENTER
McFall advised that the Venture Center had gone out of business. The original
agreement between the Economic Development Corporation and the Center provided for
the assets of the Center, the furnishings and so forth to become the property of
. EDC when the Center ceased operations. He pointed out that the EDC's second
appropriation of funds was in the form of a three-year loan under which the payment
of one-third each year would be excused. The loan is unsecured and there is little
chance of recovery, however, the furniture is in the possession of the City and an
inventory with a fair market value has been prepared. The Board should now give
direction as to the disposition of these assets so that the Corporation may recover
some cash. The furniture is now stored by the City in a public storage facility at
$55.00 per month.
McCarthy noted that a used furniture dealer had given the City an estimate of the
value of the furniture. It was determined that some of the items were high quality
and had been purchased at a very low price from Flow Industry. Upon questions,
Steve Dowell , who served on the board of the Center, noted that several things had
led to the demise of the Center including the fact that ongoing donations had dried
up, tenants were slow to come in, the high rent, and the fact that the owner would
not allow donations of labor and material . It was determined that some options
would be to offer to sell the furniture to the City and/or to the Chamber of
Commerce, sell it to a used furniture dealer, or offer it for sale at the City's
auction on July 16. It was noted that the cost of marketing the items would have
to be taken into consideration. Knapp moved to authorize staff to proceed to
market the items in which ever manner would recover the highest return to EDC.
Dowell seconded and the motion carried.
Driscoll has prepared a Letter of Demand to the Venture Center to clarify the legal
position of EDC. Dowell moved for Berne Biteman to sign the letter as Chairman of
the Board. Knapp seconded and the motion carried. A copy of the letter has been
• filed for the record.
There was no further business and the meeting was adjourned at 7:28 a.m.
Marie ensen, City Clerk
Secretary of Board
0122C-01C
•
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