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ELK RIVER ECONOMICDEVELOPMENT AUTHORITY <br /> • <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> Ai 9 OM: Paul Steinman, Director of Economic <br /> 4 Development <br /> DATE: June 7, 1999 <br /> SUBJECT: Agenda Memo for June 14, 1999 <br /> Meeting <br /> 5. 1998 Annual Report Presentation <br /> Staff will take approximately 20-25 minutes to highlight the <br /> significant issues within the 1998 annual report. This report was <br /> mailed to EDA members for the May EDA meeting,therefore it is not <br /> included in this packet. Please bring the Economic Development 1998 <br /> • Annual Report to this meeting for your reference <br /> 6. Northstar Die Casting Micro Loan <br /> As you are aware, Northstar Die Casting has modified its corporate <br /> structure and is now called Badger Die Casting. Since corporate <br /> restructuring, staff has worked with the owner of Badger Die Casting, <br /> at his request, to renegotiate repayment terms for the outstanding <br /> amount owed on the EDA micro loan in the approximate amount of <br /> $45,000. The following modifications to the loan terms have been <br /> proposed by Badger and are being recommended by staff at this time: <br /> • Reduction of the interest rate from 8.5 percent to 5.5 percent <br /> • Extension of the amortization schedule from 5 to 10 years <br /> All other terms of the agreement remain the same such as, full <br /> payment of principal and interest accumulating with a balloon <br /> payment due and payable on May 1,2003. <br /> This modification of the terms should aid Badger Die Casting in cash <br /> flow as it begins a rebuilding of its business. <br /> • <br /> 13065 Orono Parkway •P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />