Banadad Trail Association
Board Meeting Conference Call
July 12, 2012
Present: John and
Barb Bottger, Peter Spink, Karla Miller, Ted Young, Tom Rice, Wayne Monsen,
Chris Matter, Andy Jenks, Anne Rykken
Agenda approved.
Motion to accept
minutes from May retreat minutes. Peter
moved. Andy seconded. Motion passed.
Committee Reports
Finance – No report.
Membership – No report.
Forest Service
Meeting
Very positive meeting.
Some of the forest service people are at work on projects now. Their availability towards the end of the
summer depends on their firefighting obligations. We will have a motion to entertain during the
financing plan for the reroute.
West End Trail
Connection
Ted and John met with Mike Prom yesterday. There is a good understanding of the numbers
and who is going to do what. It got more
interesting because any agreements will involve three people, - the current,
legal landowner, the Proms, and the BTA.
Proms were worried about liability. Ted says his company’s insurance can cover
this. Proms are fine with the BTA doing
some work on the Trail before the 3 – year period.
If we decide to move forward with this project, Proms will
start with the legal work.
Costs – The total cost of the project is a little over
$9,000. Ted has talked with the DNR to
make sure we know which numbers are covered by the grant. BTA estimated costs include the appraiser,
the Natural Heritage Review and 25% of the grant which totals $3,540 for the
BTA. If we are going to use the grant,
this project must be completed by June 30, 2013. We are in an immediate cash flow crunch in
order to proceed with the appraisal.
What is the appetite for incurring this debt? There is a potential for a $1,500 grant from
the USFS. If we do that, the request
would be for work on the existing trail because they do not award grants for
work done on private property. If we got
this, we wouldn’t see the money until next Spring.
We can also apply for $500 from the Arrowhead Electric Cooperative which could be rather unlikely.
We can also apply for $500 from the Arrowhead Electric Cooperative which could be rather unlikely.
This adds up to the need to consider a loan because it is a
cash flow issue. Karla is uncomfortable
because fundraising is then done to pay down debt.
Ted says we have a $6,000 loan with the county with interest
rate based on T-bonds, around 3%. It
would be very easy to ask the county to rewrite the existing loan using the
$12,000 from the snowmobile as collateral.
This project is so crucial to the survival of the Banadad that Ted is
willing to gamble on it. If we can’t
cover the loan, Ted would figure out how to be sure the BTA does not take on
the debt.
Andy agrees with Karla and understands that it is very
common to take out a bridge loan due to a cash flow. It is probably easier to raise money during
the ski season. This seems like an essential
project for the trail. We do have a
business problem if we can’t get members but we have to have this trail.
Peter understands it is a near term cash flow issue but
we’ve never been able to demonstrate getting memberships so the concern is how we
are going to keep paying our expenses.
Ted feels very confident that we will get the $1,500 from
the USFS and that the banks will give $500 each, especially when it is
connected to this project.
Chris understands the situation and questions whether this
can come soley from membership.
John asks if the board is comfortable with Ted and John to
proceed with a detailed financial plan?
Ted says we need to hire an appraiser by the end of July and to get the
trail work done before the snow falls.
Do board members have other ideas for raising funds?
Motion to get a
short-term bridge loan for $1,500 to pay for an appraiser. Andy moved and Wayne seconded.
Discussion –
We’ll need more money in the fall so we will also have to be aggressive with
other fundraising. We can’t get grant
money until the appraisal is done. This
loan would be an unsecured loan from the bank.
Let’s get two banks on board with a contribution of $750 each
first. The banks should be told that
there is a board approval to ask for a loan if we are turned down for the
philanthropy.
Amended motion. Motion to get a short-term bridge loan for up
to $1,500 to pay for an appraiser. Andy
moved and Wayne seconded. Ayes - 5 Nayes – 4
Motion passed.
Ted and
John will proceed as discussed with the banks and will report back to the
board.
Peter is just as unsure about the future of the organization
as he is about the short-term expense for this trail reroute.
How will we raise the rest of the money? Andy says we have a great plan with USFS
support. We should be able to fancy a
letter to the membership and ask for a cash donation. Barb will draft a letter for the membership fundraising effort. The letter should include a picture of the
flagged trail and emphasize the parking and access to the trail from the west
end.
Motion to have John and Linda write a letter to
Dennis, the Forest Ranger to request for funding of $1,500. John moved and Andy seconded. Motion passed.
Annual Meeting Date
The annual meeting will be on Saturday, October 20, 2012.
Maps
Andy reports that they are waiting for the west end of the
trail to be finalized before maps are printed.
Karla will ask Linda about putting a request for funds on
the Give MN site.
Motion to
adjourn. John moved and Andy seconded. Motion passed.