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• EDA Finance Committee Meeting Minutes <br /> Monday, December 3, 2001, 4:00 PM <br /> Elk River City Hall <br /> Minnesota Fabrication & Machine, Inc. <br /> Present: <br /> Don Millslage, President, MN Fabrication &Machine, Inc. <br /> Tom Berry, CFO, MN Fabrication&Machine, Inc. <br /> Don DeVoe, MF&M Management Consultant, Spit Rock Management Company <br /> Committee Members/Staff <br /> x Cliff Lundberg Jim Simpson x Dan Tveite <br /> x Chris Carlson x Jeff Gongoll _Tom McNair <br /> x Paul Motin x Catherine Mehelich-Staff <br /> Background <br /> Don DeVoe presented MN Fabrication &Machine's business plan. Minnesota Fabrication <br /> &Machine, Inc. (MF&M) is a newly formed corporation by the owners of Industrial <br /> Hardfacing, Inc.(IHI). Industrial Hardfacing has had a long presence in Elk River rebuilding <br /> and manufacturing new parts for mechanical pressing,grinding, extruding and expanding <br /> equipment of the rendering and packing industries. IHI owns a 21,000 square foot facility in <br /> Elk River, and also has facilities in Lamoni, Iowa. <br /> • Recently, IHI has made a strategic decision to relocate and consolidate the Elk River <br /> corporate office &much of their operations to its Iowa facility in order to be closer to their <br /> major markets. Minnesota Fabrication &Machine, Inc. (MF&M) has been formed to allow <br /> IHI to retain a presence in Elk River. MF&M will continue to build components for IHI <br /> and will also develop contract machining and fabrication for specialty customers. Don <br /> Millslage stated the biggest asset to keeping the operations in Elk River is the presently <br /> trained workforce. <br /> The loan will be used to purchase machinery and equipment necessary for MF&F (formerly <br /> Industrial Hardfacing) to maintain an operation in Elk River. The new operation will retain <br /> 15 employees from the former Industrial Hardfacing. Within 2-years the applicant proposes <br /> to create 9 machinist positions with an average wage of$10.00/hour. <br /> In addition to the financial criteria that must be considered, the committee considered to <br /> what degree the applicant satisfies the criteria set forth in the Micro Loan Fund policies. <br /> Micro Loan Criteria MN Fabrication &Machine <br /> * Max. Loan Amount: $50,000 *Amount requested: $50,000 <br /> * Interest Rate: 1 below prime * Rate requested: 1 below prime <br /> * Equity to EDA Loan ratio of 1:1 * Equity to EDA Loan ratio of 10:1 <br /> * 1 job created per $20,000 loaned * 1 job created per $5555 loaned <br /> * Min. average wage of$8 per hour *Average wage of$10 per hour <br />