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EDA Agenda Memo <br /> January 8, 1998 <br /> Page 5 <br /> Recommendation <br /> Staff recommends the EDA request the City Council to call for a public <br /> hearing to be held on June 1, 1998, to establish Tax Increment <br /> Financing District No. 19. <br /> 8. $50,000 Microloan Request-Northstar Die Casting, LLC <br /> The Microloan Finance Committee met on Thursday, January 8 at 3:3.0 <br /> p.m. to review a request from Larry Lawson, Northstar Die Casting, <br /> LLC, in the amount of$50,000 to facilitate the companies move from <br /> Fridley to the Roma Tool building. <br /> Mr. Lawson presented information regarding his and his partner's buy <br /> out of Cedarbrook, Inc. in an effort to turn a failing company into a <br /> profitable entity. He discussed that several events occurred since that <br /> time including examination of completing a new construction project of <br /> 30,000 square feet in Ramsey. Their current operation is <br /> approximately 21,000 square feet and they feel part of the reason for <br /> previous failure of the company is due to space limitations. <br /> eh At the time of finalizing the project in Ramsey, Mr. Lawson was <br /> notified of the availability of the Roma Tool building. At that time he <br /> began to negotiate a purchase of the Roma building with Milo <br /> Hennemann. It appeared an outright purchase would not be agreed <br /> upon by the two parties, however a lease arrangement with an option <br /> to buy seems to be a viable option at this time. <br /> The Finance Committee questioned Mr. Lawson regarding the method <br /> of Northstar's buyout of Cedarbrook, Inc. and the various secured <br /> creditors of the company. Mr. Lawson indicated the EDA would have a <br /> secure position on equipment, however, this position would be second <br /> to all other secured creditors. He estimated there would be <br /> approximately $430,000 in available assets of the company after <br /> paying current lienholders, if it were to liquidate at this time. <br /> As indicated on the application,the funds would be used to move the <br /> current machinery from Fridley into the Roma Tool building and to <br /> construct additional ventilation in this building. Milo Hennemann has <br /> tentatively agreed to provide approximately$60,000 in electrical <br /> improvements to the building prior to leasing to Northstar Die <br /> Casting. <br />