10-11-1999 EDA MIN - Laserfiche WebLink

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Elk River Economic Development Authority Minutes October 11. 1999 Page 2 e 6. Consider Alternatives to Pursue Collection from Northstar Die Casting Executive Director Paul Steinman explained that Northstar Die Casting was granted a micro loan in the amount of $50,000 from the EDA in 1998. He indicated that the company has recently went out of business and merged the assets of the company with another company. He further noted that Northstar Die Casting has not made a payment on the micro loan since February 1999, and owes approximately $47,000 plus interest. Paul Steinman reviewed the actions the city has taken to collect on the loan. City Attorney Peter Beck indicated that the legal process is underway and complaints have been served in an attempt to collect the money owed to the city. President Dwyer stated that his recommendation is to pursue the legal process in an attempt to get a judgment against the guarantors of the loan and that he would not recommend a settlement of less than what is owed. It was the consensus of the EDA to pursue the legal process in this matter. 7. Other Business Initiative Foundations Letter e Executive Director Paul Steinman indicated that the Initiative Fund recently made a presentation to the City Council requesting a contribution based on a per capita estimate. Paul Steinman informed the EDA that the city and EDA both contributed money in 1997 totaling $5,000. He indicated that in 1998, both the EDA and council voted not to provide any further contributions to the Initiative Fund. It was the consensus of the EDA that it did not wish to contribute any more money to the Initiative Fund. COMMISSIONER BENDER MOVED THAT THE CITY'S TOTAL CONTRIBUTION REMAIN AT $5,000, WHICH HAS ALREADY BEEN DONATED. COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 7-0. 8. Adiournment There being no further business, COMMISSIONER THOMPSON MOVED TO ADJOURN THE MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. The meeting of the Elk River Economic Development Authority was adjourned at 6:27 p.m. J I. Q.'~I ~~~ Sandra Peine City Clerk .