01-10-2005 EDA MIN - Laserfiche WebLink

Home Browse Search

Economic Development Authority Minutes January lo, zoos Page 3 Commissioner Gumphrey asked if Mr. Inman felt the 30 days was enough time for response to the RFP. Mr. Inman stated that developers typically wait until the last week anyway, and that they would be planning now for fall developments. Commissioner Klinving stated that she was aware of a previous concept for minced use in this area which included property surrounding the transit/commuter rail site. Ms. Mehelich stated that she will check with staff. Commissioner Klinzing stated that the EDA needs to take into consideration that potential high use for this area. Ms. Mehelich asked that the Commission consider a name for the EDA-owned Brown property site. Consider Micro Loan Extension -Minnesota Fabrication & Machine Ms. Steinmetz provided background information on the $50,000, 3.7s% Micro Loan to Minnesota Fabrication & Machine, Inc. She noted that the loan was a participation loan with First National Bank of Elk River and that payments have been consistent. A balloon payment of $41,732.03 was due December 31, 2004. The company is eligible and has requested atwo-year extension at a market interes[ rate of 6.5%. The company has provided the processing fee and necessary documents. Ms. Steinmetz noted that the EDA Finance Committee recommends approval of the Micro Loan extension request at 6s% interest, with a monthly payment of $400. She stated that Kenneth Millslagle of Minnesota Fabrication & Machine, Inc. was present to answer any questions the Commission may have. Commissioner Dwyer asked if the property has been sold to the business owners. Mr. Millslagle stated that he and his brothers have purchased the property to pay off the mortgage to First National Bank and would like to refinance to generate cash and operating expenses. The company then would ask for a subordinate agreement from the EDA for the bank to process them application. MOTION BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER TVEITE TO APPROVE THE REQUEST BY MINNESOTA FABRICATION AND MACHINE, INC. FOR A TWO YEAR EXTENSION OF THE $50,000 MICRO LOAN AT AN INTEREST RATE OF 6.5%> WITH MONTHLY PAYMENTS OF $400. MOTION CARRIED 7-0. 8. Other Business President Gongoll noted that Cymbet has received their second round financing of $16 million. Ms. Mehelich will draft a letter of acknowledgement to Cymbet for President Gongoll's and Commissioner KIutzing's signature. 9. Desi ng anon - 6:10 p .m. Su//b~~mitted by, ~(Vo.~ict `~ec~6n.-~~ Debbie Huebner Recording Secretary