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MEETING OF THE EDA FINANCE COMMITTEE <br />HELD AT THE ELK RIVER CITY HALL <br />WEDNESDAY, JULY 25, 2007 <br />Members Present: Chris Carlson, Paul Motin, Dave Rymanowski, Dan Tveite, Tom McNair and Larry <br />Toth (HRA Representative) <br />Members Absent: Cliff Lundberg <br />Staff Present: Director of Economic Development Catherine Mehelich and Assistant Director of <br />Economic Development Heidi Steinmetz <br />Introductions/Accept_ anuary 25, 2007 EDA Finance Committee Minutes <br />Ms. Mehelich introduced new Finance Committee member, Larry Toth. Since the Micro Loan <br />policy was amended in November 2006 to include a new program for downtown businesses, Mr. <br />Toth will act as a representative of the HRA. <br />Regarding the January 25, 2007 draft Finance Committee minutes, Member Dave Rymanowski <br />inquired if the State Statute regarding the privacy of financial statements was clarified. Ms. <br />Mehelich stated yes, that the Statute identifies that busuiess plans and specified financial statements <br />are private or non-public data. Upon xhat clarification, the January 25 Finance Committee Minutes <br />were accepted. <br />2. Consider Micro Loan Extension Reduest: Badger Ventures, LLC <br />Ms. Mehelich introduced Eric Haehn of Gradient 'I"cchnology (Badger Ventures, LLC) indicating <br />that Mr. Haehn is available to answer any questions from the Committee. <br />Ms. Mehelich summarized 1~1r. Haehn's request, .which would extend the May 20051oan to April <br />2010. The five year term is typical for EDA Micro Loan terms. <br />Mr. Haehn gave a brief sumtnar-t~ on the status of the company and future opportunities. <br />Comtittee member Day-e Rymanowski inquired if the Finance Committee and EDA should have <br />underwriting requirements for Micro Loan extensions. Member Paul Motion responded that it <br />should depend on whether or not the applicant is up-to-date on payments. Member Tom McNair <br />reported that the company's financials are positive and payments have been current. <br />MOVED BY DAN TVEITE AND SECONDED BY PAUL MOTIN, THE FINANCE <br />COMMITTEE RECOMMENDS THAT THE EDA CONSIDER APPROVING THE <br />LOAN EXTENSION FOR BADGER VENTURES, LLC WITH THE FOLLOWING <br />TERMS: <br />RATE 6.25% FIXED <br />TERM UNTIL APRIL 2010 <br />SECURITY PERSONAL GUARANTEE <br />STRUCTURE PARTICIPATION LOAN <br />WITH THE BANK OF ELK <br />RIVER <br />