Laserfiche WebLink
ht <br /> ,�„_, 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 /> On November 5,2013,the EDA Finance Committee directed staff to determine if the City can go after <br /> 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 /> PCNEREO Bt <br /> NATURE <br />