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Economic Development Agenda Memo <br /> April 8, 1999 <br /> Page 5 <br /> The EDA Finance Committee met on Wednesday, April 7,1999, at 4:00 <br /> p.m.to hear a presentation from Mark Rothfork and to discuss his loan <br /> application. As a reminder, the EDA Finance Committee consists of <br /> the following individuals: <br /> • Jeff Gongoll <br /> • Tom Bender <br /> • Lloyd Brutlag <br /> • Jim Simpson <br /> • Tom McNair <br /> • Dan Tveite <br /> • Cliff Lundberg <br /> There were three primary issues noted by the Committee at that time, <br /> including: <br /> • The EDA's dollars would be at 93 percent of loan to value <br /> • The $65,000 request is above the maximum as stated in the <br /> guidelines of$50,000 <br /> • The interest rate requested at 5 percent is lower than any <br /> other micro loans which have been completed to date <br /> There are several issues pointed out by staff that influence this loan <br /> request, including: <br /> • There is no tax increment being requested for this project <br /> • Industrial/Manufacturing projects are indicated as a high <br /> priority for use of the micro loan fund <br /> • Staff believes the project will not proceed without the use of <br /> the EDA micro loan fund <br /> Earlier discussion with Mark Rothfork had indicated his desire to <br /> apply for a $35,000 tax increment grant, in addition to a $50,000 micro <br /> loan. Staff discussed this issue at length with Mr. Rothfork and <br /> opened the door for a loan possibly exceeding the maximum amount of <br /> $50,000,as a trade off for not requesting tax increment for the project. <br /> The Finance Committee discussed specifically the requestfor a 5 <br /> percent interest rate on this loan. An overview of past EDA micro <br /> loans shows the following: <br /> • 1 at 9 percent <br /> • • 1 at 8.75 percent <br /> • 14 at 8.5 percent <br />