Laserfiche WebLink
EDA Agenda Memo <br /> October 14, 1997 <br /> Page 2 <br /> expressed a significant interest in this type of joint development <br /> agreement. <br /> 6. Micro Loan Request - Gregg Karnis <br /> The EDA Finance Committee met on Thursday, October 9, 1997, to <br /> discuss a micro loan request from Gregg Karnis to construct an Italian <br /> restaurant within Sax Foods. Mr. Karnis' request is in the amount of <br /> $50,000 for a ten year term at an 8.5 percent interest rate. <br /> Mr. Karnis appeared before the EDA Finance Committee to discuss his <br /> loan request. The Finance Committee made the following comments: <br /> • A majority of Committee members felt this type of use <br /> (restaurant new construction) did not meet the guidelines of <br /> the micro loan fund. <br /> • Committee members commented that, based upon their <br /> review of the financial information, and after hearing the <br /> presentation by Mr. Karnis, this project would likely proceed <br /> with or without use of the EDA micro loan. <br /> di The Committee generally felt this deal could be 100 percent bank <br /> financed theprovision of adequate collateral as indicated <br /> givenq <br /> through the applicants business,GLK, Inc. <br /> Mr. Karnis has proposed using, as collateral for this loan,the assets of <br /> his business, GLK, Inc. These assets include numerous pieces of <br /> equipment, furniture, and fixtures related to his pronto pup business <br /> which is in operation for the Minnesota State Fair. The EDA's position <br /> would be subordinateto that of the bank on any such collateral. <br /> The Finance Committee voted 3-1 to recommend denial of Mr. Karnis' <br /> loan request in the amount of$50,000. Committee member Jim <br /> Simpson was,not present at the meeting, but indicated verbal support <br /> of the loan request. The primary reasons given for denial include that <br /> the use isnot a high priority as indicated in the Fund Guidelines, and <br /> that the project will likely proceed with or without use of the EDA <br /> micro loan. <br /> 7. Community Venture Network -Presentation by Public Resource <br /> Group <br /> Public Resource Group, Inc., will be represented by Leonard Kirscht <br /> • and Dennis Welch at the EDA meeting to discuss the Community <br />