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3.1. EDSR 01-31-2017
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3.1. EDSR 01-31-2017
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City of <br /> Meeting of the Elk River EDA Finance Committee <br /> luver <br /> Held at the Elk River City Hall <br /> Tuesday,November 29, 2016 <br /> Members Present: Larry Toth,Ryan Hardin,Dan Tveite,Jennifer Wagner,Nate Ovall, and <br /> Chad Vitzthum <br /> Members Absent: None <br /> Staff Present: Amanda Othoudt,Economic Development Director and Colleen Eddy, <br /> Economic Development Specialist <br /> Also Present: Annie Deckert,Decklan Group; Dave from Heritage Millwork Inc. <br /> 1. Call Meeting to Order <br /> Pursuant to due call and notice thereof, the meeting of the Elk River Finance Committee <br /> was called to order at 7:35 a.m. <br /> 2. Consider Agenda <br /> Motion by Wagner and seconded by Toth to approve the agenda. Motion carried 6- <br /> 0. <br /> 3.0 Consent Agenda <br /> Member Wagner stated she would like to see the September 29, 2016 meeting minutes <br /> revised to better reflect the discussion during the September 29, 2016 meeting. Motion to <br /> approve the September 29, 2016 meeting minutes was moved to the January 31, 2017 <br /> meeting <br /> 4.1 Heritage Millwork Industrial Incentive Microloan Application <br /> Member Vitzhum abstained from the discussion and vote as he is the applicant's loan <br /> officer. Ms. Othoudt presented the staff report. Members discussed the terms of the loan, <br /> the SBA guidelines,number of)obs being created,is it an equipment loan vs. real estate loan, <br /> etc. <br /> Motion by Wagner and seconded by Ovall to approve the request in accordance with <br /> the terms of the EDA's policy (10 year Am, 5 Year Balloon) and holding a 3rd lien <br /> position on the equipment in addition to requiring the applicant to provide personal <br /> and corporate guarantees. Motion carried 5-0. Vitzhum abstained from the vote. <br /> An alternate Motion was made by Ovall and seconded by Toth to recommend <br /> approval of the loan request in accordance with the SBA terms specifically for this <br /> loan (5 year Am, 5 Year Balloon), if needed, provided that the SBA does not approve <br /> an exception to their policy, allowing the SBA to hold a subordinate position to the <br /> EDA on the loan request. Motion carried 5-0. Vitzhum abstained from the vote. <br />
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