Freeport EDA convened at 7:00 P.M.by President Matt Worms with members Rodney Atkinson, Jim Hemker, Andy Welle, and Paul Hetland also in attendance. John Thelen was absent.

Also in attendance were the following: Herman Lensing, Jim Schulz, Todd Hagen, Scott Hamak, Dave Humbert, Jim Herdering,

Staff persons on hand were Paul Hetland.

Hetland gave an overview of the process. Scott Hamak gave an overview of his submitted document which is on file for review. Todd Hagen commented on the issues relating to TIF and presented related documents which are on file for review.

Hagen commented that the proposed lot for sale, Block 2, Lot 2 of Industrial Park Plat 1, lies within an existing district and the proposal appeared to be within the pre-set budget and therefore would not impacting the other taxing jurisdictions and the City would not have to notify the other local governmental units. Through extensive meetings among Hagen, Hamak, Hetland, and Herdering, it was proposed to proposed a tax increment financing (TIF) option for Millwood Metalworks in the existing district with annual payments of approximately $11,000 and an overall benefit of about $61,000. Hagen also reported that the "But for" test, a test to determine the eligibility of a TIF, completed by Herdering with Hetland's assistance did conclude a TIF would be in order and necessary for the land sale and business relocation to progress.

In response to questions regarding hiring more employees, Herdering mentioned that it would be difficult to hire more employees and ensure their long-term stability. He was confident he would be able to sustain the current number of 5 employees and possibly add two more – all averaging at approximately $20 per hour.

Hetland gave a brief overview of the JOBZ changes which did allow the program to be applied to Millwood Metalworks current proposal.

Hamak reminded the EDA members of the considerations in awarding public subsidies and encouraged the retention of jobs in the business subsidy agreement.

Worms moved and Hemker seconded sale of land at $27,000 per acre and approval of EDA Resolution 2005-004. Discussion offered. 5-0 carried.

Worms moved and Welle seconded a motion to recommend approval of Millwood Metalworks in TIF district 1-2 contingent upon the review and approval of a business subsidy agreement. Discussion offered. Carried and moved 5-0.

EDA left the Small Conference Room at 7:54 P.M.

Freeport City Council convened at 7:55 P.M. by Mayor Matt Worms with members Dave Humbert, Joe Hennen, Tim Hennen, and Ken Goebel also in attendance.

The Pledge of Allegiance was said by those in attendance.

Agenda

Goebel moved and Humbert seconded a motion approving the meeting agenda with additions and corrections. Discussion offered. Motion carried 5-0.

Worms gave an overview of the recommendation from EDA and opened the hearing at 7:58.

Discussion and explanations of the proposal followed that replicated those in the EDA meeting. There was an inquiry as to the penalties in a business subsidy proposal that would be addressed with the review of the proposed document at the next meeting.

Humbert moved and Goebel seconded a motion to approve the EDA recommendations in Resolution 2005-026. Discussion. Motion carried 5-0.

Joe Hennen moved and Humbert seconded a motion approve the proposed TIF district contingent upon the approved business subsidy agreement. Discussion offered. Motion carried 5-0.

Worms called for an EDA Special Meeting to work out the business subsidy agreement with Millwood Metalworks on Wednesday, September 28 at 12:00 P.M..

Hemker mentioned that a article recently in the Melrose Beacon incorrectly mentioned that EDA levies have been used in the past to augment the general fund levy. Hetland noted that the inaccuracy was brought to the attention of the Beacon and its staff.

At 8:11 P.M. Humbert moved and Goebel seconded a motion to adjourn the meeting. Motion carried 5-0. The EDA adjourned by the call of the chair.