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<br />MEETING OF THE EDA FINANCE COMMITTEE <br />HELD AT THE ELK RIVER CITY HALL <br />MONDAY, APRIL 14, 2008 <br />Members Present: Chris Carlson, Paul Motin, Tom McNair, Larry Toth, Dave Rymanowski and Dan <br />Tveite <br />Members Absent: Cliff Lundberg <br />Staff Present: Director of Economic Development Catherine Mehelich, Finance Director Tim <br />Simon <br />Consider Micro Loan Application: Pomeroy Tool, Inc. <br />Ms. Mehelich sLUnmarized the $100,000 EDA Micro Loan application from Pomeroy Tool, Inc. as <br />described in the staff report. The applicant, Mr. Long Do, provided an overview his background <br />and the proposed project which includes acquiring the existing Pomeroy Tool business in Elk <br />River from Dick Pomeroy. Mr. Do responded to questions of the Committee regarding sources <br />for working capital and growing the business. Mr. Do was excused from the meeting following <br />dus discussion. <br />The Finance Committee discussed concerns regarding the need for additional working capital fox <br />technology upgrades and quality-control of the growing business, the applicant's request for <br />interest only payments on the micro loan for first year, options for additional participation from <br />the seller, and how a new buyer may affect key customer/supplier relationships without sufficient <br />investment. <br />MOVED BY DAVE RYMANOWSKI AND SECONDED BY PAUL MOTIN, THE <br />FINANCE COMMITTEE RECOMMENDS THAT THE EDA CONSIDER <br />DECLINING THE LOAN REQUEST AS PRESENTED AND ENCOURAGE THE <br />APPLICANT TO REFINE AND SUBMIT WITH A DIFFERENT FINANCING <br />STRUCTURE AND BUSINESS PLAN FOR THE PROJECT. <br />THE MOTION CARRIED 6-0. <br />2. Other Business <br />There was no other business discussed. <br />3. Closing <br />The EDA Finance Committee meeting ended at approximately 8:00 a.m. <br />Respectfully submitted by, <br />t~~ <br />Catherine Mehelich <br />Director of Economic Development <br />