Thursday, March 20, 2008
Administrative Center – Room 3220
8:00 a.m.
MEMBERS PRESENT: Steve O’Malley, Barry Bertelsen, Don Brenengen, Joan Curran (via phone), Tara Johnson, Bill Shepherd, Mary Jo Werner, Vicki Burke (arr @8:04), Audrey Kader (arr @8:07), Gary Ingvalson (arr @8:07)
MEMBERS EXCUSED: Steve Doyle, George Hammes, Brad Pfaff, John Wettstein
MEMBER ABSENT: J. Terry Hanson
STAFF & GUESTS PRESENT: Brian Fukuda, Charlie Handy, Greg Flogstad, Jim Bloedorn, Barb Clark, Barb Friell, Joe Ledvina, Jon Olson, Tim Kabat, Jason Gilman, Karl Green, Tim Boyd, Earl Engelson, Cheryl Stephen
CALL TO ORDER/ROLL CALL
Steve O’Malley, Vice Chair, called the meeting to order at 8:02 a.m. Introductions were made by all present.
LOAN EXTENSION / LOAN REQUEST BY AIRBORNE DATALINK FOR REVOLVING LOAN FUNDS
Brian Fukuda and Tim Kabat reviewed. Back in 2004, the City and County loaned Airborne DataLink $100,000 each in order for the company to expand their internet services; their original tower was in Holmen and the loan dollars put an extra tower on top of Granddad’s Bluff that allowed service to the greater La Crosse area. The request for additional loans of $115,000 from each the City and the County, is to expand the service to the West Salem area, improve internet network in the existing areas, expand their staff and marketing efforts, and pay some liabilities.
Tim noted the City loan committee met last week and approved a revision of the existing loan terms; they took the unpaid balance and amortized it over 15-year period from date of its revision; terms are: zero percent for first 5 years, 2% for second 5 years, and 4% for the last 5 years; this reduces his monthly payment to approximately $700-800/month. (The original financing was aggressive with 5-year term, including increasing interest rates; payments to just the City were over $2,000/month, and due to cash flow issues, those payments have since ceased.)
Brian noted that two decisions are before the County committee today; one is to consider revision of current loan terms with Airborne DataLink and the other is consideration of additional loan of $115,000 to Airborne DataLink. Greg Flogstad noted current loan balance is approximately $85,000; they are currently in default; the last payment to the County was in December 2006.
CLOSED SESSION (8:12 a.m.)
MOTION by Werner/Kader to enter into closed session pursuant to s. 19.85(1)(e), Wis. Stats., for the purpose of deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business whenever competitive or bargaining reasons require a closed session and pursuant to s. 19.85(1)(f), Wis. Stats., for considering financial data of specific persons which, if discussed in public, would be likely to have a substantial adverse effect upon the reputation of any person referred to in such histories or data; to wit: Loan extension/loan request from Airborne DataLink. Motion carried unanimously; Doyle, Hammes, Pfaff, Wettstein excused; Hanson absent.
OPEN SESSION (9:53 a.m.)
MOTION by Burke/Ingvalson to reconvene to open session. Motion carried unanimously; Doyle, Hammes, Hanson, Pfaff, Wettstein excused; Hanson absent.
REPORTED CLOSED SESSION ACTION
MOTION by Werner/Ingvalson for the County Economic Development Fund board to deny the request of loaning additional funds of $115,000 to Airborne DataLink. MOTION by Kader/Johnson to amend the motion by referring the decision to the April 3, 2008, regular monthly meeting of the board. Mary Jo Werner called the question. Motion on the amendment carried unanimously; Doyle, Hammes, Hanson, Pfaff, Wettstein excused; Hanson absent.
MOTION by Bertelsen/Johnson for the County Economic Development Fund board to match city terms on the existing revolving loan with Airborne DataLink, those being: unpaid balance amortized over 15-year period with zero percent interest for first 5 years, 2% interest for second 5 years, and 4% interest for the last 5 years. Motion carried unanimously; Doyle, Hammes, Pfaff, Wettstein excused; Hanson absent.
ADJOURNMENT
There being no further business, Vice President O’Malley adjourned the meeting at 9:54 a.m.
Disclaimer: The above minutes may be approved, amended or corrected at the next committee meeting.
Cheryl Stephen, Recorder