Little Kanawha Area Development Corporation

June 16, 2008

Meeting Minutes

The Board of Directors of the Little Kanawha Area Development Corporation (LKADC) held its regular meeting on Monday, June 16, 2008 at 7 p.m. in Grantsville, WV. A quorum of members were present. Members present: Jim Sullivan, John Rose, Gary Knight, Donnie Pitts, Kevin Helmick, Garland Martin. Proxies: Robert Lowe Jr, Alvin Engelke, Joyce Sellers. Diane Ludwig, staff, was present.

Members reviewed May 2008 minutes. Motion to approve: Jim Sullivan, 2nd, Kevin Helmick. Motion approved. Members reviewed current financials. Motion to approve financials & pay current bills, John Rose, 2nd, Jim Sullivan. Motion approved.

In membership matters, Garland Martin Jr. was introduced to everyone. Garland is a new LKADC board member by virtue of being elected as the new Mayor of Elizabeth.

A report was given regarding current activity by staff, including business assistance, training, and grant applications. It was noted that we still have not received the survey for the Industrial Park property from Hupp Surveying, despite being told last month that it was almost done.

Action items:

Microloan fund. Megazound’s equipment was sold at auction by Calhoun Banks. The proceeds fell far short of what the company owed the bank. We had a second on the same equipment (minus the vehicles). After discussion, the group consensus was that the LKADC not pursue Jim & Pat Burrows about payment on their debt to us, despite the fact that we have their personal guarantee. The reason is Jim’s rapidly worsening health situation.

Also with regards to the microloan fund, it was noted that we are not getting any applications due to having an artificially high interest rate set by the SBDC. We require far more paperwork and planning than a bank, but charge NY Prime the day of closing, which is high. People are borrowing on credit cards instead of using the microloan fund. Diane had spoken to Kevin Twohig at SBDC about permission to lower the interest rate, and he said they wouldn’t say yes, wouldn’t say no. Their end of the program is in total disarray. Some of the other microloan funds around the state have already lowered their interest rates to be competitive. Motion to lower the LKADC Microloan Fund’s interest rate to 4% for applicants who meet all loan qualifications: Donnie Pitts. 2nd, Kevin Helmick. Motion approved.

It was noted that the WVEDC Fall Conference for 2008 will be held in Parkersburg. The LKADC is one of the sponsors, and was asked to make a small donation towards conference expenses. Motion to give WVEDC $100 towards conference expenses: Donnie Pitts; 2nd, Jim Sullivan. Motion approved.

There being no further business, the meeting was adjourned.

Next meeting August 18, 2008, 7:00 p.m., in Elizabeth at the County Commission room of the Wirt County Courthouse.