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0 Elk -... - Request for Action <br /> River <br /> To Item Number <br /> EDA Finance Committee 4.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business December 10, 2013 Brian Beeman, Director of Economic <br /> Development <br /> Item Description Reviewed by <br /> Ethanol Technology Default Jeremy Barnhart,Deputy Director, CODD <br /> Reviewed by <br /> Action Requested <br /> Consider Ethanol Technology default and make recommendation to the EDA. <br /> Background/Discussion <br /> The company defaulted on its loan in 2010 and went bankrupt shortly thereafter. First National Bank has <br /> written off this loan. The remaining balance is $66,729.66. The City of Elk River's Finance Department is <br /> asking that this loan be closed out by the end of 2013. The City's attorney has written a resolution to <br /> close out this account. <br /> ak On November 5, 2013, the EDA Finance Committee directed staff to determine if the City can go after <br /> IIIF personal guarantee assets. Staff contacted First National Bank and it was determined that there are <br /> personal assets. However, the bank didn't pursue those assets because they deemed it cost prohibitive. <br /> The process may take several months, and could require intervention by the court system. The legal fees, <br /> time, and resources required may outweigh the benefits. <br /> Staff recommends the Finance Committee write off this loan so that it can be closed out by the end of <br /> 2013. The EDA attorney looked into the matter and she will be present to offer any comments. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> • EDA Attorney Memo <br /> • November 5, 2013 Staff report <br /> • Ethanol Technology Amortization Chart <br /> • Resolution to write off loan <br /> • <br /> IPOIEREI i1 <br /> INATURE <br />