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of <br /> ..>4\4j. <br /> `Elk Request for Action <br /> River <br /> To Item Number <br /> EDA Finance Committee 2.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business November 5, 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 /> In August 2008 the EDA approved a Micro Loan in the amount of$74,000 for Ethanol Technology to <br /> assist in the purchase of equipment and complete remodeling for the expanded business venture.The <br /> term of the loan was a 10 year amortization with a 5 year balloon at 3%. The loan was secured by a 2nd <br /> position lien on equipment,inventory, accounts receivable,real estate and personal guarantee. The loan <br /> was structured as a participation loan with First National Bank of Elk River. There last payment was <br /> 411 February 25, 2010. <br /> The company defaulted on its loan in 2010 and went bankrupt shortly thereafter. The First National Bank <br /> has written off this loan. The remaining balance is $66,729.66. The City of Elk River's Finance <br /> Department is asking that this loan be closed out by the end of 2013. The City's attorney has written a <br /> resolution to close out this account. <br /> Staff is asking that the Finance Committee make a recommendation to the EDA to write off this loan so <br /> that it can be closed out by the end of 2013. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> • Ethanol Technology Amortization <br /> III <br /> 0 <br /> INATUREI <br />