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REQUEST FOR ACTION <br />TO ITEM NUMBER <br />Economic Develo ment Authority 5. <br />AGENDA SECTION MEETING DATE PREPARED BY <br />Economic Development October 11, 2010 Catherine Mehelich, Director of <br /> Economic Develo ment <br />ITEM DESCRIPTION REVIEWED By <br />Consider Resolution 10-05 Authorizing Transfer from the EDA Tim Simon, Finance Director <br />DYED Fund to the Micro Loan Fund REVIEWED BY <br />ACTION REQUESTED <br />Adopt Resolution 10-05 Authorizing Transfer from the EDA DYED Fund to the Micro Loan Fund <br />BACKGROUND/DISCUSSION <br />In 2003 the City of Elk River received a $200,000 MN Investment Fund grant from the MN Dept of <br />Trade & Economic Development (DYED) for the purpose of providing a business expansion loan to <br />Sportech, Inc. DYED required the funds to be administered in a separate account for auditing purposes <br />during the 7-year loan term <br />The loan has recentlybeen paid in full and staff recommends that the EDA authorize a transfer of the <br />loan proceeds to the Micro Loan Fund to support future business start-ups and expansion projects. <br />DYED has indicated that there are no federal requirements that the EDA must adhere to, other than <br />using the funds for economic development. The City's award of these state and federal resources <br />provides significant benefit to the business community and leverages the City's investment in community <br />and economic development projects. <br />FINANCIAL IMPACT <br />The Micro Loan Fund has a current balance of $823,372.18. The amount to be transferred from the <br />DIED Fund is $214,493.16. <br />ATTACHMENTS <br />^ EDA Resolution 10-05 <br />ACtlOtl Motion by Second by Vote <br />Follow Up <br />N:\Departments\CommunityDevelopment\Economic Developmnt\Micro Loan Fund\ 10.11.10 EDA Action Requested.doc <br />