5. EDSR 11-10-2008 - Laserfiche WebLink

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MEETING OF THE EDA FINANCE COMMITTEE HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 3, 2008 Members Present: Cliff Lundberg, Paul Motin, Tom McNair, Larry Toth, Dave Rymanowski, Dan Tveite and Chris Carlson Members Absent: None Staff Present: Director of Economic Development Catherine Mehelich, Economic Development Assistant Annie Deckert Accept EDA Finance Committee Minutes Motion by Motin, second by Toth to accept the August C>, 2008,_EDA Fuiance Committee Minutes as presented. The motion carried 7-0. 2. Consider Micro Loan Extension Reduest: Lake Assault Custom Boats LLC Ms. Mehelich summarized the Micro Loan extension request from Lake Assault Custom Boats. As application described in the staff report. Mr. Jerry Atherton, President of Lake Assault Custom Boats, distributed a presentation and provided an update on the status and future plans for the business. Mr. Atherton indicated that the business was originally established in 2003 for custom fishing boats. Since 2004 he has been focusing his efforts on commercial fire boats and patrol boats. This has allowed him a narrowed market niche where he has been able to compete well. Recent sales include Chicago Fire Dept, I=Iennepiii Counn-, and St. Louis County among many others. He indicated that while he is able to ccnnpete well in this market, he is finding that it is much more capital intensive than the fishing boats. His goal is to be at $4-million in sales, stay and grow in Elk River. He currently has 5 boats on order. Mr. Atherton was excused from the meeting following this discussion. Discussion by the committee included a request for confirmation whether the collateral is subordinate to the bank letter of credit, and confirmation of a personal guarantee and recent personal financial statements. It was the consensus of the committee that the extension request is reasonable given the micro loan policy change on the maximum loan term since Lake Assault's original application (from 3-year to 5-year balloon). The committee discussed the concept of establishing a local business advisory group from various backgrounds that could provide suggestions and advice to micro loan applicants, particularly new and small businesses. The group could be facilitated by Enterprise Minnesota (formerly MN Technology) and it could be among a list of various resources, including MN Workforce Center and SCORE, that the city could refer businesses. Chris Carlson offered to assist in organizing the advisory group with the help of Enterprise Minnesota and indicated willingness to serve on it. MOVED BY MCNAIR AND SECONDED BY TVEITE, THE FINANCE COMMITTEE RECOMMENDS THAT THE EDA CONSIDER APPROVING A 2- YEAR EXTENSION ON THE LAKE ASSAULT CUSTOM BOATS LOAN AT A 6.5% MARKET RATE INTEREST AND FIXED MONTHLY PAYMENTS OF $606.64 SET UP ON AUTOMATIC WITHDRAWALS. THE MOTION CARRIED 7-0. Cl-°s~ng The EDA Finance Committee meeting ended at 8:00 a.m.