5.0. EDSR 02-10-1997 - Laserfiche WebLink

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EDA FINANCE COMMITTEE MEETING MINUTES JANUARY 23, 1997 • ELK RIVER CITY HALL CONFERENCE ROOM Members Present: Tom McNair, Tom Bender, Lloyd Brutlag, and Bud Houlton Members Absent: Jim Simpson Staff Members Present: Paul Steinman, Director of Economic Development Also Present: Applicants: Jeff Eastey and Sally Johnson The Finance Committee Meeting was called to order at 4:00 p.m. Ms. Johnson and Mr. Eastey provided a video tape and summary of their manufacturing business. They provided brochures and additional information on the products which they manufacture - shrink wrapping machines and sealers. The proceeds of the $50,000 micro loan requested would go toward various general upgrading and facilitating aesthetic improvements such as curb and • gutter on the site, blacktopping parking lots, landscaping, and painting the building. Jeff Eastey explained they have already purchased the former Osseo Brake building on 173rd Avenue in Elk River, and intend to move the assembling part of their business into that building from its current location in Rogers. After the applicants were dismissed, the Finance Committee discussed the details of the requested $50,000 micro loan. Tom McNair asked about the reasons for offering the applicants a fixed rate of 8.25 percent versus the option of allowing for the rate to float and be adjusted every six months. Staff indicated from an administrative point of view that it was much easier and cleaner to fix the interest rate and amortization schedule rather than recalculating semi-annually over the term of the loan. It was the consensus of the Finance Committee, including phone comments from Jim Simpson, that the loan be recommended for approval to the Economic Development Authority. The applicants are requesting a $50,000 loan, and staff is recommending the loan term be 5 years at a fixed interest rate of 8.25 percent. Respectfully submitted, • Paul T. Steinman Director of Economic Development