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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />Economic Development Authority <br />Item Number <br />7.2 <br /> <br />Meeting Date <br />November 17, 2025 <br />Prepared By <br />Brent O'Neil, Economic Development Director <br /> <br />Item Description <br />Twin City Metal Works Loan Maturity and Payoff <br />Reviewed by <br />Cal Portner <br /> <br />Action Requested <br />Approve, by motion, a final payoff amount of $935.21 for the Twin Cities Metal Works Microloan. <br /> <br /> <br />Background/Discussion <br />The EDA originated a loan of $200,000 to Orluck Industries in 2018 on a five-year amortization schedule. The <br />loan was extended two years by a 2020 agreement and reworked in 2022 as the company was being acquired <br />and transitioning to its present operation, Twin City Metal Works. The reworked loan was scheduled to <br />mature in July 2025. Because of the modified loan the EDA incurred $4,027 in legal fees, which are <br />reimbursable by the company and payable through the the loan. Additionally, there are several instances in <br />which payments were received beyond the 10-day grace period each month. Some of those are attributable <br />to the transition of company ownership. Others are related to a single monthly payment which was missed <br />and subsequently created a cascade effect by creating a late fee on the next several payments, despite them <br />being on time. In total, 14 late charges were logged. Staff feels six are warranted and eight can be considered <br />incidental to cascade effects of one missed payment and one incident in which the post office inadvertently <br />destroyed the check in the mail. <br /> <br />In addition to regular interest and the initial principal of $200,000, the following additional charges would be <br />due to satisfy the loan: <br />Late Fees: $1,057.06 <br />Legal Fees: $4,027.00 <br />Additional Interest: $ 987.22 <br /> <br />With payments made to date, the remaining balance on the loan, inclusive of these fees, is $935.21 The <br />company intends to pay the balance of the loan in full by November 30. The action requested would affirm <br />the application of additional fees and set the remaining loan balance at $935.21 as of November 18, 2025. <br /> <br />Upon full repayment, a satisfaction of mortgage will need to be approved by the board at a future meeting. <br /> <br />Financial Impact <br />$935.21 remains due on the loan, inclusive of fees. An additional $1,902.72 for eight late charges has not been <br />applied to the payoff balance. <br /> <br />Page 20 of 21