5.0.-11.0. EDSR 05-09-1994 - Laserfiche WebLink

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• With its name reflecting a multi-county focus, the • organization desires to expand to serve a greater client base. • Revenues derived from loan originations and monthly servicing fees would be used to run CMDC; however, this group would also be active in all three counties with business financing seminars, etc. CMDC is seeking on one-year, temporary expansion of its service territory into Sherburne and Isanti counties. The chances of gaining approval of this request are much better than seeking a permanent expansion. A temporary expansion enables municipalities and lenders in Isanti and Sherburne to "try before you buy". With the expansion request, CMDC seeks letters of support from financial institutions, municipalities, economic development authorities and the like. ACTION REQUESTED The EDA is asked to submit a letter of support on behalf of the Central Minnesota Development Company (CMDC) regarding its request for a temporary, one-year service territory expansion into Sherburne • County. 9. LOAN TRANSFER The EDA is in receipt of a request by Coldwell Banker Allegiance Realty to transfer the outstanding balance of a real estate loan on an office suite on the Evans-Main Street office building to a new office suite in the Freeport Financial Center building. EDA Commissioners will recall that it approved a $27,500 loan to the principals of Coldwell Banker in late 1992. This loan was closed in February, 1993, and payments commenced on March 1, 1993. This loan is now over one year old and has performed satisfactorily. With the May 1, 1994, payment, just over $25,100 is still owed the EDA. Of this amount, approximately $20,400 is owed on the real estate portion of the loan. If this loan transfer is approved, the portion of the loan attributable to financing the telephone system will be paid down completely thereby reducing the EDA's exposure. As an aside, the space that Coldwell Banker will vacate in the Evans Main building will be freed up to enable other tenants/owners to expand internally. As indicated in its letter requesting this transfer, • Coldwell Banker is willing to pay the attorney's fees and closing costs associated with this transaction.