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EDA Finance Committee Meeting Minutes <br /> • Tuesday, March 4, 2003, 5:00 PM <br /> Elk River City Hall <br /> Present: <br /> Jerry Atherton,President,Lake Assault Custom Boats <br /> Patrick Pelstring,President,Pelstring Capital Corporation <br /> Committee Members/Staff <br /> x Cliff Lundberg x Jim Simpson _Dan Tveite <br /> x Chris Carlson Jeff Gongoll x Tom McNair <br /> x Paul Motin x Catherine Mehelich-Staff x Heidi Hall-Staff <br /> Micro Loan Portfolio Report <br /> Catherine Mehelich presented a summary of the Micro Loan balance sheet. Ms. Mehelich <br /> stated that Carpe Kairos (Custom Cutter Grinding) and Sportech have recently paid their <br /> balances in full. Ms. Mehelich also stated that Riverside Manufacturing has verbally <br /> requested a loan extension but has not provided staff with the requested information to <br /> process the request. Due to staffs repeated attempts to obtain the information, and due to <br /> consistent delinquencies, the Finance Committee directed staff to consult with the City's <br /> attorney regarding the issue. <br /> Presentation by Jerry Atherton of Lake Assault Custom Boats <br /> • Staff provided the Finance Committee with the following information prior to the meeting. <br /> Issue <br /> Staff has received a request by Jerry Atherton, President of Lake Assault Custom Boats for a <br /> Supplemental Micro Loan in the amount of$50,000 to be used for equipment purchase. <br /> The loan is proposed to be structured as a participation loan with M & I Bank of Coon <br /> Rapids. <br /> Background <br /> Lake Assault Custom Boats is a start-up manufacturer of custom fishing boats. The <br /> company has identified a very targeted market of elite fishermen. The company has <br /> identified 7,500 square feet of lease space in the Decker building for its manufacturing <br /> operation. The company owner,Jerry Atherton, has extensive experience in the sheet-metal <br /> industry. <br /> The applicant proposes to use the micro loan funds to purchase equipment necessary to <br /> initiate production and sales of the boats. The company has financing commitments for <br /> equity investment and a bank line of credit. In addition, the company has submitted an <br /> application for financing from the Initiative Foundation. The sources and uses of the <br /> project are as follows: <br /> Bank Line of Credit $100,000 Working Capital <br /> Private Equity $ 80,000 Working Capital <br /> • Initiative Foundation $ 75,000 Working Capital <br /> EDA Loan $ 50,000 Equipment <br />