Laserfiche WebLink
<br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity. Updated: January 2023 <br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To <br />Joint Finance Committee <br />Item Number <br />4.1 <br />Agenda Section <br />General Business <br />Meeting Date <br />July 25, 2023 <br />Prepared by <br />Brent O’Neil, Economic Development Director <br />Item Description <br />Discussion on Die Concepts Loan <br />Reviewed by <br />Joshua Mollan, Economic Development Specialist <br />Reviewed by <br /> <br /> <br />Action Requested <br />Provide advice and direction to staff on next actions regarding the EDA’s loan to Die Concepts. <br /> <br />Background/Discussion <br />Die Concepts received a loan from the EDA in 2016 in the amount of $185,000. Terms were set at 2% interest, 20- <br />year amortization, and a balloon payment at the end of five years. In 2021, Die Concepts requested and was granted <br />an extension to the loan in which payments continued at the same amount and the balloon was extended by two <br />years. That balloon payment was to have been made in June 2023. The estimated principal owing is $129,000. Staff <br />has been in contact with Die Concepts about this and about potential resolutions. <br /> <br />One option Die Concepts would like the committee and EDA to consider is an extension of the loan term with a <br />re-amortization of the loan over 36 months such that the loan would be paid in full at the end of a 36-month <br />extension. Staff would like to discuss this option and all other options the committee may have, including the steps <br />necessary to ensure the EDA’s interests are protected. The direction from the committee will drive next actions. <br /> <br />Financial Impact <br />The loan balance of the Die Concepts loan is approximately $129,000. <br /> <br />Mission/Policy/Goal <br />Support existing Elk River businesses. <br /> <br />Attachments <br /> None <br /> <br /> <br />