7.0. EDSR 01-10-2005 - Laserfiche WebLink

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• City of Elk River MEMORANDUM TO: EDA Finance Committee CC: Lori Johnson, Finance Director FROM: Heidi Steinmetz, Assistant Director of Economic Development DATE: January 4, 2005 SUBJECT: Consider Loan Extension Request: Minnesota Fabrication & Machine, Inc. Attachments • Letter from Kenneth Millslagle of Minnesota Fabrication&Machine, Inc. dated • December 6, 2004 • Letter from Mary Paidosh of First National Bank of Elk River dated December 6, 2004 • Minnesota Fabrication&Machine, Inc. Financial Statements o Balance Sheet o Comparative Income Statement Background In December 2001, the EDA awarded a $50,000, 3.75% Micro Loan to Minnesota Fabrication &Machine, Inc. The Micro Loan was used for the purchase of equipment and the remodeling of the former Industrial Hardfacing, Inc. building located on Twin Lakes Road. The loan was structured as a participation loan with First National Bank of Elk River. Minnesota Fabrication&Machine was formed by the owners of Industrial Hardfacing. Industrial Hardfacing had a long presence in Elk River rebuilding and manufacturing new parts for mechanical pressing,grinding, extruding and expanding equipment of the rendering and packing industries. In 2001, Industrial Hardfacing relocated and consolidated the Elk River corporate office&much of their operations to its Lamoni, Iowa facility in order to be closer to their major markets. Minnesota Fabrication&Machine was formed to allow Industrial Hardfacing to retain a presence in Elk River. Minnesota Fabrication&Machine continues to build components for Industrial Hardfacing and has developed contract manufacturing for specialty customers. Those customers include Great River Energy,Barilla • Pasta, and North America Pasta, among others. The company plans are to continue to expand its external customer base,both among pasta markets and other markets.