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<br /> <br /> Elk River Joint Finance Committee <br />Held at Elk River City Hall <br />Tuesday, April 26th, 2022 <br /> <br /> <br />Members Present: Ryan Hardin, Rhonda Magnussen, Dan Tveite, Nate Ovall, and Jim <br />Gromberg <br /> <br />Members Absent: Chad Vitzthum, Larry Toth, Charlie Blesener <br /> <br />Staff Present: Brent O’Neil, Economic Development Director <br /> Joshua Mollan, Economic Development Intern <br /> <br /> <br />1. Call Meeting to Order <br /> <br />Pursuant to due call and notice thereof, the meeting of the Elk River Joint Finance <br />Committee was called to order by Chair Tveite at 7:34 a.m. <br /> <br />2. Consider Agenda <br /> <br />Motion by Ovall and seconded by Hardin to approve the Joint Finance Committee <br />agenda. Motion carried 5-0. <br /> <br />3. Consent Agenda <br /> <br />Motion by Ovall and seconded by Gromberg to approve the November 30, 2021, Joint <br />Finance Committee meeting minutes. Motion carried 5-0. <br /> <br />4.1 Orluck EDA Loan <br /> <br />Mr. O’Neil requested guidance from the committee on the Economic Development <br />Authority’s loan to Orluck Industries. Mr. O’Neil noted that Orluck has been working with a <br />third-party consultant which assists companies in debt restructuring and company <br />reorganization. The EDA’s loan, originally at $200,000, is current, with about $100,000 paid <br />down. It is secured by two pieces of equipment. However, due to the potential restructuring <br />or wind-down, the equipment may be liquidated., which a recent appraisal shows is in line <br />with the current balance, but may be worth less on the open market due to factors such as <br />relocation. Mr. Ovall discussed some factors to consider, including priority lien position on <br />equipment. Mr. Tveite questioned how the process would work if the machinery were to be <br />sold. Mr. Ovall suggested that it would be ideal for the city to stay out of the sale of the <br />equipment due to the size of the machines and work with the principals or the consultant on <br />any sale. <br /> <br />Ms. Magnussen questioned the overall process and the committee’s role and action. Mr. <br />Tveite suggested that the committee advise staff to work with the relative parties involved to <br />