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El REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Economic Development Authori 9. <br /> AGENDA SECTION MEETING DATE <br /> April 8, 2013 <br /> ITEM DESCRIPTION REVIEWED By <br /> Authorization of Resolution No. 13-03 to write off Suzanne Fischer, Community Operations and <br /> Nicole's Finishing Touch Salon Micro Loan Development Director <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> Authorize Resolution No. 13-03 to write off outstanding balance of$6894.28 owed by the former <br /> Nicole's Finishing Touch Salon to the City's Downtown Business Revitalization Micro Loan Program. <br /> BACKGROUND/DISCUSSION <br /> January 2008 - EDA awarded a $25,000 Downtown Business Revitalization Micro Loan to Nicole's <br /> Finishing Touch Salon, Inc. The loan terms were: 2 years, 3% fixed, Personal guaranty. This was a direct <br /> loan with Elk River EDA. Monthly payments were $1074.53. <br /> December 2008 - Nicole Fox, owner of Nicole's Finishing Touch Salon, Inc., submitted a request for the <br /> EDA's consideration of a one year extension on its Micro Loan. The Finance Committee recommended <br /> approval and the issue was addressed at the January 2009 EDA Meeting. <br /> January 2009 - The EDA approved the request based on the Finance Committee's recommendation with <br /> the waiver of pending late fees. The Micro Loan extension fee was 1% of the loan balance and had fixed <br /> monthly payments were $687.61. <br /> April 2009—Nicole Fox requests a second 1-year extension on its Micro Loan. The Finance Committee <br /> reviewed request,recommended approval and moved issue to the May 2009 EDA Meeting. <br /> May 2009 -The EDA approved the request based on the Finance Committee's recommendation. The <br /> loan was extended at the 3%interest rate and payments were reduced$250.00 per month with a balloon <br /> payment due in January 2012. <br /> November 2011 —Nicole's Salon closed. Ms. Fox filed for bankruptcy and it was discharged June 2012. <br /> August 2012 - Staff updated the Finance Committee stating that they had worked the city attorney, <br /> however all discussions to date indicated the City no longer had any rights or remedies to collect <br /> payment. <br /> FUIEREI / T <br /> NATURE <br />