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Economic Development Agenda Memo <br /> April 8, 1999 <br /> Page 6 <br /> • 1 at 8 percent <br /> • 1 at 6.5 percent <br /> • 3 at 6 percent <br /> Due to this summary, the Finance Committee reached consensus that <br /> the recommended interest rate on this loan should be prime rate- <br /> currently 7.75 percent. Staff had discussions with Mark Rothfork <br /> regarding this issue after the meeting, and he expressed significant <br /> concern regarding a higher interest rate. He indicated a 7.75 percent <br /> interest rate would raise his monthly payment to the EDA by <br /> approximately $105. He stated he is becoming less comfortable with <br /> proceeding on this project, in part, due to the recommended interest <br /> rate of 7.75 percent. He suggested an interest rate of 6.5 percent may <br /> be acceptable. Staff discussed this issue verbally with several Finance <br /> Committee members, and a consensus was reaffirmed that the interest <br /> rate on this loan be no lower than 7.75 percent. <br /> Finance Committee Recommendation <br /> Unanimous approval by the Finance Committee to recommend that <br /> the EDA provide a $65,000 micro loan to Mark Rothfork at a fixed <br /> 40 interest rate 7.75 percent for'a term of 20 years with a balloon <br /> payment at the end of year 5. <br /> • <br />