04-13-1998 EDA MIN - Laserfiche WebLink

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Elk River Economic Development Authority Minutes Aoril13. 1998 Page 2 e zones. The EDA noted that the main difference between the two zonings is the requirement for the exterior finish of the building. The EDA indicated that business park zone was the desired zone however, it did not want to preclude some of the uses that are allowed in the light industrial zone due to the exterior finishing requirements for business park zones. No decision was made at this time, however President Duitsman indicated that the issue would be discussed at the next EDA meeting. 6. Consider $50,000 Micro Loan for The Ink Wizards Executive Director Paul Steinman indicated that the EDA Finance Committee reviewed a request from The Ink Wizards for a micro loan in the amount of $50,000. Paul indicated that The Ink Wizards currently lease approximately 2.500 square feet of space and are planning construction of a 4,000-5,000 square foot light manufacturing facility. The EDA Finance Committee recommended approval of the loan request with the following terms: . 8.5% interest rate, five year balloon, 20 year amortization . Second mortgage position on the land and building . Personal Guarantees . Promissory Note e COMMISSIONER BENDER MOVED TO SUPPORT THE EDA FINANCE COMMITTEE'S RECOMMENDATION TO APPROVE THE $50,000 MICRO LOAN TO THE INK WIZARDS FOR RELOCATION AND EXPANSION OF THEIR BUSINESS OPERATIONS. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 7. Consider Modification to Olde Main Eatery and Sweet Shoppe Micro Loan Executive Director Paul Steinman stated that the EDA Finance Committee considered a request by The Olde Main Eatery and Sweet Shoppe for modification of the $50,000 EDA micro loan. He indicated that The Olde Main Eatery is experiencing approximately $36,000 in cost overages. Paul indicated that the Finance Committee recommended approval of the request to modify the $50,000 EDA micro loan. COMMISSIONER GONGOLL MOVED TO APPROVE A SUBORDINATION OF THE EDA MICRO LOAN TO AN ADDITIONAL $36,000 LOAN FROM FIRST NATIONAL BANK OF ELK RIVER FOR THE OLDE MAIN EATERY AND SWEET SHOPPE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 7.5. Larry Morrell President Duitsman indicated that the City Council recently approved a Tax Increment Financing District for Morrell & Morrell, Inc., subject to the EDA specifying the terms and conditions for the tax increment financing dollars. President Duitsman indicated that Larry Morrell has submitted a revised request for more financial assistance than offered in the EDA's proposal. e