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Economic Development Authority Minutes <br />May 10, 2004 <br />Page 4 <br />Bob Michalek and Jim Studee of Display Solutions. The Finance Committee <br />unanimously recommended that the EDA consider awarding Display Solutions a <br />$50,000 Supplemental Micro Loan for the purpose of acquiring equipment necessary to <br />the operation. This recommendation was contingent upon American National Bank <br />not charging a servicing fee for the participation loan. This fee has been waived. <br />MOVED BY COMMISSIONER TVEITE AND SECONDED BY <br />COMMISSIONER KUESTER TO APPROVE THE APPLICATION FROM <br />DISPLAY SOLUTIONS FORA $50,000 SUPPLEMENTAL MICRO LOAN <br />WITH THE FOLLOWING TERMS: <br />• Personal guarantee from owners and spouses <br />• Additional financing sources secured <br />• Secured by second lien position on equipment <br />• Term to be 10-year amortization, 3-year balloon payment at 1 point below <br />prime with a 2 percent floor <br />• Structured as participation loan with American National Bank <br />• Job performance agreement (7 full-time jobs at no less than $12 per hour <br />within 2 years). <br />MOTION CARRIED 3-0-1 (Councilmember Motin abstained because he advises <br />the owner and he felt there may be a perception of a conflict of interest.) <br />8. Other Business <br />There was no other business. <br />Adjournment <br />The meeting of the Elk River Economic Development Authority adjourned at 6:13 <br />p.m. <br />~.,~-~ <br />Joan Schtnidt <br />City Clerk <br />