Minutes of Menno Area Development Meeting

October 19, 2004

The Menno Area Development Corporation held its regular meeting at the Open Door Café on October 19, 2004 with the following in attendance: Wilma Liebl, Peg Thranum, Donna Zeeb, Larry Tolzin, Dale Weiss, Bill Headley, Darlene Mehlhaf, Gary Herman, David Bender, Jo Wohlenberg, Ken Bertsch, Nancy Larsen, Teresa Anderson, Shannon Herrboldt, Dennis Aisenbrey, Cindy Aisenbrey, and Tammy Liebl.

President Weiss called the meeting to order at 12:15 p.m.

Larry Tolzin moved to approve the agenda with the following addition: Governor’s Day (actually Capitals for a Day in SD. Wilma Liebl seconded, all present in favor.

Nancy Larsen gave the SEFP report. Since August 4, 2004, she has had 4 new inquiries from Menno. Two are clients, one has gone on to funding and she has helped one get started on their business plan. Nancy handed out tips on the best and worst places to shop that includes tips on how to “court” your customers. After the last development meeting, Glenn Kirschenman, SEFP board member, took Nancy around and introduced her to Menno business owners. The SEFP board will receive refresher training at Marion later today from Ernesto Sirolli, creator of Enterprise Facilitation!

Gary Herman moved to approve the minutes of the September 20 meeting and the October finance report with the following additions: checks written that are not on the report-Second Century Publishing, Welcome Ad 14.85 and Tammy Liebl, 1 hour web page work, $25. Cindy Aisenbrey seconded, all present in favor.

Committee Reports: Tammy Liebl is still working to develop an automated system so the development and council minutes may be posted directly to Menno’s website. She stated Jacque Liebl would be interested in having her computer class do a project similar to last year’s. Her students interviewed, took pictures, and wrote a story about 10 MADC member businesses. You may view those featured businesses by going to Menno’s web page and clicking on “Community”. (If any of the already featured businesses have updates to their profile, they should contact Tammy.) It was agreed to have them do this again this year. The board will draw for the ten businesses to be featured this year out of the remaining member businesses, excluding those that were featured last year.

New Business: Ken Bertsch explained about applying to be formerly recognized by the IRS as a tax-exempt non-profit organization. By doing this, if someone makes a contribution to us, the IRS won’t challenge the deductibility of the contribution as a charitable contribution. If not formerly recognized, the IRS could challenge the contribution and not allow it. This tax-exempt status is known as a 501(c)(3). There is a filing fee of approximately $550 for this status. No action was taken. (We have a certificate of incorporation as a nonprofit organization from the SD Secretary of State.)

Discussion was had a revolving loan fund. Lori Cowman of District III and Beth Davis of SDREI have both attended our development meetings and discussed revolving loan funds with us. At this time, we lack the funds to do this on our own or to even join the SD Community Capital Fund.

Curtis Johnson from Scotland is involved with the development group in Scotland that has a revolving loan fund. Wilma Liebl made a motion to invite Dr. Johnson to speak at our next development meeting about Scotland’s revolving loan fund. Larry Tolzin seconded, all present in favor.

Bertsch suggested using the funds we have to pledge the money for the gap financing the bank would need to approve a loan. Our funds would be in a CD and used as security for the loan. We would work with Dave Bender at Menno State Bank. If a need arises, the development board will meet with him to make a decision.

Dale suggested following Irene’s example and having a fund-raiser in place of a meeting, possibly once every three months. Money raised could be used toward a revolving loan fund, to purchase property, or other activities of the corporation.

Tolzin mentioned we had been invited to participate in Governor Mike Rounds “2005 Capitals for a Day in South Dakota”. He thinks this is a great opportunity for us. The governor and his department representatives agree that traveling together across the state and meeting with constituents is a great way to learn about our unique communities. This will be presented to the council at their next regular meeting.

Bill Headley asked about Lee Friesen’s proposal of building cabins for rent and purchasing land. Tolzin will speak to the owner of the motel property in town to see if it is for sale and what the price is.

Cindy Aisenbrey made a motion to adjourn at 1 p.m. until at 12 Noon November 16 at the Open Door. Wilma Liebl seconded, all present in favor.

Respectfully submitted,

Peggy Thranum, Secretary