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ver <br />MEMORANDUM <br />TO: EDA Finance Committee <br />CC: Lori Stich, Accountant <br />FROM: Heidi Steinmetz, Assistant Director of Economic Development <br />DATE: June 14, 2006 <br />SUBJECT: Consider Loan Extension Request: Lake Assault Custom Boats, <br />LLC <br />Attachments <br />• Letter from Jerome Atherton of Lake Assault Custom Boats dated February 10, 2006 <br />(received by City on May 23, 2006) <br />• Lake Assault Custom Boats, LLC Yeax End Financial Statements <br />o Balance Sheet <br />o Income Statement <br />Background <br />In March of 2003, the EDA awarded a $50,000, 3.25% Micro Loan to Lake Assault Custom <br />Boats, LLC. The loan was used to purchase machinery and equipment necessary fox the <br />company to begin operations in Elk River in 7,500 square feet of space in the Decker building <br />on East Highway 10. In 2003, Lake Assault Custom Boats began manufacturing custom <br />fishing boats and has a target market of elite fishermen. <br />The original terms of the loan are as follows: <br />• Secured by 1" lien position on equipment <br />• Term: 10-year amortization, 3-year balloon payment @ 3.25% <br />• Structured as participation loan with The Bank of Elk River <br />Job pexfoxmance agreement (3 full-time equivalent jobs @ no less than $17.00/hour <br />within 2 years <br />The company has fulfilled the goals of the job pexfoxmance agreement. The company has <br />made consistent Micro Loan payments throughout the term of the loan. <br />