INFORMATION 04-21-2003 - Laserfiche WebLink

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EDA Finance Committee Meeting March 4, 2003 Page 2 of 3 Total Project $305,000 The applicant has proposed that the EDA take a first position on the equipment. The preliminary equipment list is attached. The applicant proposes to create 7 to 12 full-time jobs within the first t~vo-years of the project. Proposed wages are not less than $17.00 per hOUlZ Mr. Atherton presented the following infon~ation to the Finance Committee: · Boat Design Concepts · Customer Experience · Market Niche · Existing Marketing Materials · Similar Boat Designs · Operational Milestones · Equipment Shortlist · Owner Background Pat Pelstrmg provided background information on the project's financial sources and future commitments. Finance Committee Discussion The Finance Committee asked Mr. Atherton several questions regarding boat design, employees, suppliers and marketing. Most of the discussion reflected marketing issues. The Finance Committee expressed that Mr. Atherton should consider additional marketing efforts that may ultimately increase his estimated $10,000 marketing budget. Finance Committee Recommendation Jim Simpson moved to recommend to the EDA to approve the $50,000 Supplemental Financing Loan to Lake Assault Custom Boats subject to the following items: · Personal guarantee from Mr. and Mrs. Atherton · Confn-mation that additional financing is in place · The l°an is to be secured by a l't lien position on the' machinery and equipment. The loan is proposed to be structured as a par6cipafion loan with M & I Bank. Tom McNaiz seconded the motion. The motion carried 5-0. Paul Motin departed at this time. Continue Discussions on Proposed Amendments to the l¥1icro Loan Policy The Finance Committee continued theiz discussion from the February 18, 2003 Finance Committee meeting regarding the proposed amendments to the Micro Loan Policy. The Finance Committee suggested the following amendments to the respective sections of the Micro Loan Policy: · Eligible Uses: Investment property development should be an eligible use of the Micro Loan with the requirement that speculative projects are 50% pre-leased and that relocation of the business would require review by the Finance Committee.