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Request for Action <br />To <br />Item Number <br />joint Finance Committee <br />4.1 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />General Business <br />May 13, 2021 <br />Colleen Eddy, Economic Development Specialist <br />Item Description <br />Reviewed by <br />F&M Properties, LLC. (Die -Concepts) Microloan <br />Cal Portner, City Administrator <br />Extension <br />Reviewed by <br />Action Requested <br />Consider and provide recommendation to the EDA on the F & M Properties, LLC (Die -Concepts) <br />Microloan two-year extension request. <br />The Joint Finance Committee may recommend approval, approval with conditions, or denial of the request. <br />Background/Discussion <br />On May 23, 2016, the city approved a $185,200 Microloan as a short-term loan with a 5-year repayment term to <br />F&M Properties, LLC. (Die -Concepts). The proceeds of the note were utilized to pay a portion of the relocation, <br />acquisition and renovation of the mortgaged property located at 18521 Line Avenue NW. They have been paying <br />the loan pursuant to city policy over the past 5 years with a 2% interest rate. Final payment is due June 1, 2021. <br />The city received a request to extend the terms of the loan repayment by two years. Loan extensions are <br />authorized under the terms of the policy, subject to EDA and City Council approval. <br />To justify the extension, Mr. Trapp provided a letter from CorTrust Bank stating the bank was unable to match <br />the current terms. <br />Financial Impact <br />The request does not include additional funding from the city. If the extension is approved, it would provide <br />additional interest at 2% into the fund until the loan is paid in full. The extension would also reduce available <br />funds that could be used for other projects until the loan is paid in full. <br />Mission/Policy/Goal <br />The Joint EDA/HRA Finance Committee acts in an advisory capacity to the Authority. <br />Attachments <br />■ Baker Tilly Analysis <br />■ Letter of Denial from CorTrust Bank <br />■ Request for extension <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional P 01 <br />service, and community engagement that encourages and inspires INAW"RE1 <br />