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RESOLUTION NO. 13- 03 <br /> A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE <br /> CITY OF ELK RIVER,AUTHORIZING THE WRITE-OFF OF THE OUTSTANDING <br /> LOAN BALANCE OF $6,894.28 OWED BY THE FORMER NICOLE'S FINISHING <br /> TOUCH SALON TO THE CITY OF ELK RIVER'S DOWNTOWN BUSINESS <br /> REVITALIZATION MICRO LOAN FUND <br /> WHEREAS,Nicole's Finishing Touch Salon, a sole proprietorship, formerly located at 617 Main <br /> Street NW, and the City of Elk River,a municipal corporation entered into a Loan Agreement on <br /> February 8,2008 for $25,000.00 (Exhibit A);and <br /> WHEREAS,within 8 months of opening the owner began to have trouble keeping up with her <br /> contractual loan payments; and <br /> WHEREAS,in December 2008, the Finance Committee reviewed and recommended approval of a <br /> one year loan extension request from the borrower at the current 3%interest rate and with reduced <br /> monthly payments of$687.61;and <br /> WHEREAS, the EDA approved the Finance Committee's recommendation at their regular January <br /> 2009 meeting;and <br /> WHEREAS,in April 2009, the Finance Committee reviewed and recommended approval of a <br /> second one year loan extension request from the borrower at the current 3%interest rate,reduced <br /> monthly payments of$250.00 and a balloon payment in January 2012;and <br /> WHEREAS, the EDA approved the Finance Committee's recommendation at their regular May <br /> 2009 meeting;and <br /> WHEREAS, in November 2011, Ms. Nicole Fox filed for bankruptcy and had it discharged in June <br /> 2012, and; <br /> WHERES,in August 2012, staff informed the Finance Committee they had worked the city attorney <br /> but all discussions to date indicated the City no longer had any rights or remedies to collect payment, <br /> and; <br /> WHEREAS, the write off of this delinquent loan is necessary to accurately reflect the accounting of <br /> the City's Downtown Business Revitalization Micro Loan Program;and <br /> WHEREAS, the City's General Fund will not be affected by this write off but the City's Downtown <br /> Business Revitalization Micro Loan Fund balance will be reduced. <br /> NOW THEREFORE,BE IT RESOLVED by the Council of the City of Elk River that the City <br /> Administrator (?) is authorized the write-off of the outstanding loan balance of$6,894.28 owed by <br /> the former Nicole's Finishing Touch Salon to the City's Downtown Business Revitalization Micro <br /> Loan Program. <br /> �a , Eaii lr <br /> 11A lJ11 <br />