Laserfiche WebLink
EDA Finance Committee Meeting Minutes <br />Tuesday, March 4, 2003, 5:00 PM <br /> Ell( River City Hall <br /> <br />Present: <br /> Jerry Atherton, President, Lake Assault Custom Boats <br /> Patrick Pelstring, President, Pelstnng Capital Corporation <br /> <br />Committee Members/Staff <br /> x Cliff Lundberg <br /> x Chris Carlson <br /> x Paul Motto <br /> <br />Micro Loan Portfolio Report <br /> <br /> x Jim Simpson <br /> Jeff Gongoll <br />__~x Catherine Mehelich-Staff <br /> <br /> Dan Tveite <br />x Tom McNair <br />x Heidi Hall-Staff <br /> <br />Catherine Mehelich presented a surmaaary of the Micro Loan balance sheet. Ms. Mehelich <br />stated that Carpe ICairos (Custom Cutter Grinding) and Sportech have recently paid their <br />balances in full. Ms. Mehelich also stated that Riverside Manufacturing has verbally <br />requested a loan extension but has not provided staff with the requested information to <br />process the request. Due to staff's repeated attempts to obtain the information, and due to <br />consistent delinquencies, the Finance Com_m.ittee directed staff to consult with the City's <br />attorney regarding the issue. <br /> <br />Presentation by Jerry Atherton of Lake Assault Custom Boats <br />Staff provided the Finance Cormmttee with the following information prior to the meeting. <br /> <br />Issue <br />Staff has received a request by Jen¥ Athe:ton, President of Lake Assault Custom Boats for a <br />Supplemental Micro Loan in the amount of $50,000 to be used for equipment purchase. <br />The loan is proposed to be structured as a participation loan with M & I Bank of Coon <br />Kapids. <br /> <br />Background <br />Lake Assault Custom Boats is a start-up manufacturer of custom fishing boats. The <br />company has identified a very targeted market of elite fishermen. The company has <br />identified 7,500 square feet of lease space in the Decker building for its manufacturing <br />operation. The company owner, Jerry Atherton, has extensive experience in the sheet-metal <br />industry. <br /> <br />The applicant proposes to use the micro loan funds to purchase equipment necessary to <br />imtiate production and sales of the boats. The company has financing commitments for <br />equity investment and a bank ]me of credit. In addition, the company has submitted an <br />application for financing from the Initiative Foundation. The sources and uses of the <br />project are as follows: <br /> <br />Bank Line of Credit $100,000 Working Capital <br />Private Equity $ 80,000 Working Capital <br />Initiative Foundation $ 75,000 Working Capital <br />EDA Loan $ 50,000 Equipment <br /> <br /> <br />