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Economic Development Authority Minutes April 11, 2005 Page 2 Ms. Mehelich stated that staff and Ehlers met with the two developers to discuss their proposals. The developers were encouraged to submit additional information regarding how thee-proposal would benefit the EDA, development of the park through a master developer concept, and to further redefine concepts for the use of the park. Staff will continue to meet with the developers over the next month. A report will be available for the May EDA meeting. President Gongoll asked if staff felt a workshop meeting was necessary for this issue. Ms. Mehelich stated no, not at this time. Commissioner Dwyer noted that he would be absent for the May EDA meeting. 6. Consider Micro Loan Poli Waiver -Bad er Ventures LLC Gradient Technolo Ms. Mehelich provided background on Badger Ventures, LLC (Gradient Technology) Micro Loan. She explained that a section of the Participation and Subordination Agreement is inconsistent with a requirement in the EDA's recently amended Micro Loan Policy. Staff requests that the EDA consider waiver of the following policy provision in this case: "The participation agreement shall include the provision that if the bon-ower defaults on the loan, the EDA will collect all further payments during the default based on a pro-rata basis with the participating bank, excluding the distribution of proceeds resulting from the foreclosure on collateral." Ms. Mehelich stated that since the participation loan is structured in which tax rebate payments would be dedicated to the payment of the micro loan, the proposed loan structure is inconsistent with the policy. In this case that structure appears to provide the EDA adequate protection that its portion of the loan will have a sufficient source of revenue to cause it to be repaid. Tom McNair, Bank of Elk River -Stated he was present to answer any questions the Commission may have. President Gongoll asked if this policy waiver was only for this particular case, and whether or not the policy needs to be revised. Ms. Mehelich stated that the waiver was only being requested for Badger Ventures due to the relationship of the tax rebate assistance which is not normally the case on micro loans, and that she did not see a need to revise the policy at this time. MOTION BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER FARBER TO APPROVE A WAIVER FROM THE DESCRIBED PROVISION OF THE MICRO LOAN POLICY FOR THE BADGER VENTURES, LLC MICRO LOAN. MOTION CARRIED 6-0. Consider Call of Micro Loan - Dis la Solutions Inc. Assistant Director of Economic Development Heidi Steinmetz provided background information on Display Solutions, Inc.'s $50,000 Micro Loan which was approved in 2004. She reviewed the status and the terms of the loan. Ms. Steinmetz explained that due to mcreased business, Display Solutions is in need of leasing 20,000 - 30,000 square feet of space, which is not currently available in Elk River and they will need to find space outside of the City. Display Solutions would like to maintain the current terms of their loan, which