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MEETING OF THE EDA FINANCE COMMITTEE <br />HELD AT THE ELK RIVER CITY HALL <br />WEDNESDAY, AUGUST 6, 2008 <br />Members Present: Cliff Lundberg, Paul Motin, Tom McNair, Larry Toth, Dave Rymanowski, Dan <br />Tveite and Chris Carlson <br />Members Absent: None <br />Staff Present: Director of Economic Development Catherine Mehclicll; Economic Development <br />Assistant Annie Deckext, Finance Director Tim Sinic~rl <br />1. Accept EDA Finance Committee Minutes <br />The Apxi18, 2008 and April 14, 2008 EDA Finance Committee Minutes ~yere distributed for <br />review and accepted as presented. <br />2. Consider Micro Loan APplication• Ethanol Technology of i~~linnesota, LLC <br />Ms. Mehelich summarized the $74,000 EDA ~'licro Loan application from Ethanol Technology of <br />Minnesota, LLC (ETom) as described in the staff report. IVTi . Bart Wells, CEO of ETom, <br />provided an overview of the business expansion project. ~Tr: Wells has developed a technology for <br />a "plug and play" ethanol conversion system for vehicles. He indicated that with the lunited <br />marketing of the product thus fax, he has over 300 orders and the ability to only assemble 4 per <br />day. The expansion requires hiring 7 full time employees to ketl> up with the growing demand for <br />the new product. Mx. Wells responded t~ duesti~ZS o£ the Corrunittee regarding outsourcing, <br />patent protection, warranty issues, tie in with "Ene>:g~T Cit}-", .~~ ,~ilability of real estate for collateral, <br />and future growth plans, Mr. Wells was excused from the meeting following this discussion. <br />MOVED BY DAN TVEITE AND SECONDED BY CHRIS CARLSON, THE <br />FINANCE COMMITTEE RECOMMENDS. THAT THE EDA CONSIDER <br />APPROVING THE $74,000 :LOAN REQUESTTO ETHANOL TECHNOLOGY OF <br />MINNESOTA, LLC WITH THE FOLLOWING TERMS: <br />RATE 3% FIXED <br />TERM 16 Y"EAR AMORT./5 YEAR BALLOON <br /> PAYMENT <br />SECURITY 2°~ POSITION LIEN ON EQUIPMENT, <br /> INVENTORY, ACCOUNTS RECEIVABLE, <br /> REAL ESTATE AND PERSONAL <br /> GUARANTEE <br />STRUCTURE PARTICIPATION LOAN WITH FIRST <br /> NATIONAL BANK OF ELK RIVER <br />JOB/WAGE GOALS CREATE 7 FULL-TIME POSITIONS AT <br /> $15+/HR WITHIN 2 YEARS <br />THE MOTION CARRIED G-0-1. (DAVE RYMANOWSKI ABSTAINED) <br />3. Consider Revised Micro Loan Application: Pomeroy Tool, Inc. <br />Ms. Mehelich summarized the revised $100,000 EDA Micro Loan application from Pomeroy Tool, <br />Inc. as described in the staff report. She reported that the applicant, Mr. Long Do, was not <br />