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• ElkMeeting of the Elk River EDA Finance Committee <br /> River Held at the Elk River City Hall <br /> Tuesday, November 5, 2013 <br /> Members Present: Daniel Tveite,Cliff Lundberg,Paul Motin,and Larry Toth <br /> Members Absent: Nate Ovall, and Chad Vitzhum <br /> Staff Present: Economic Development Director Brian Beeman,Economic <br /> Development Marketing Intern Chanda Knoof, and City Attorney <br /> Andrea McDowell Poehler <br /> I. Call Meeting to Order <br /> Pursuant to due call and notice thereof, the meeting of the Elk River Finance <br /> committee was called to order at 7:30 a.m. by Brian Beeman. <br /> 2.1 Ethanol Technology Default <br /> Director Beeman reviewed the terms and conditions of Ethanol Technology's <br /> approved Micro Loan in August 2008. The loan was structured as a Participation <br /> Loan with First National Bank of Elk River. First National Bank of Elk River <br /> received their last payment on February 25, 2010. Ethanol Technology defaulted and <br /> III went bankrupt shortly thereafter. Staff is requesting for committee approval to <br /> forward the City attorney's written resolution to the EDA to approve closing out the <br /> account by the end of 2013. <br /> Committee member Motin asked if Ethanol Technology principles filed bankruptcy. <br /> It was assumed but not known if they had, further research was suggested. <br /> Committee member Tveite asked if the City could write the loan off and then go <br /> after the personal guarantee. City attorney McDowell-Poehler suggested if the action <br /> was to pursue collection on the personal guarantee the City should wait to write the <br /> default loan off. Committee member Tveite felt a search should be made to see <br /> where their personal guarantee stands before recommending further action, <br /> committee member Lundberg agreed. <br /> Moved by committee member Tveite seconded by Toth to table a decision till <br /> more research was made and discussions continue next week. Motion carried <br /> 4-0. <br /> 2.2 Bank of Elk River Default <br /> Director Beeman presented background regarding the tax abatement that was <br /> received by The Bank of Elk River for the construction of approximately 20,000 <br /> Ill square feet of expansion.Job goals were outlined in the Business Subsidy Agreement <br /> between the City and The Bank of Elk River. These job goals fall under the Business <br />