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Dave Walters, representing Coin-Tainer and Stonesthrow, stated that next week they expect <br />to be complete with rebuild of processes. The contract for deed holder will agree to 6 <br />months, right of redemption foreclosure. He noted that existing tenants have 5-7 year <br />leases. <br /> <br /> Member Tveite – questioned if Coin-Tainer has a 5-year lease? Mr. Walters agreed. <br /> <br /> Member Toth – Questioned if these terms are written down. Special conditions – 6 months <br />foreclosure, is that written? Mr. Walters – that can be incorporated in contract for deed. <br />Same thing – contract for deed = sellers mortgage. Member Lundberg disagreed; want the <br />EDA to see the actual transfer documents. Mr. Walters stated that can happen. <br /> <br /> Motion by Member Lundberg to recommend approval of the request by Coin-Tainer <br />for a Jobs Incentive Microloan with the following terms: <br /> <br /> 5-year lease Stonesthrow to Coin-Tainer, $200,000 advance. Payments to <br />facilitate repayment <br /> Guarantee Stonesthrow and Coin-Tainer major principals <br /> Language protects lease holder <br /> Extend foreclosure period (6 months) <br /> Payment schedule should be based on 5 year amortization, 5-year balloon. <br /> <br />The motion failed for lack of a second. <br /> <br />Member Lundberg stated he was uncomfortable with a 20-year amortization. Member <br />Tveite stated that he wants to avoid changing the policy and that he disagreed with Member <br />Lundberg on this issue, but was in agreement with the loan to Stonesthrow. <br /> <br />Member Motin – stated he preferred to have a discussion without the applicant present. Mr. <br />Walters stepped out at this time. <br /> <br />Member Motin – Supports the loan, wants to avoid looking unfriendly to businesses. Tying <br />both owners is satisfactory, does not seem to be a bad risk. <br /> <br />Member Ovall – Does not like “triangle transactions”. Pledge of unencumbered property <br />and other assets creates challenges in collecting. <br /> <br />Discussion <br /> <br />Member Ovall –Comfortable with the loan. Borrower should be Real Estate Holding <br />company. A guarantee from Coin-Tainer president as well as owners is necessary. City <br />nd <br />should be 2 mortgagee. <br /> <br /> Moved by Member Ovall and seconded by Member Vitzthum to recommend <br />approval of the request by Coin-Tainer for a Jobs Incentive Microloan with the <br />following terms: <br /> <br /> <br />