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p Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authority 6.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business December 16, 2013 Jeremy Barnhart,Deputy Director, CODD <br /> Item Description Reviewed by <br /> Ethanol Technology Default <br /> Reviewed by <br /> Action Requested <br /> Approve by motion the resolution writing off Ethanol Technology's microloan in the amount of <br /> $66,729.66 as recommended by the EDA Finance Committee and make recommendation to the City <br /> Council on same. <br /> Background/Discussion <br /> On November 5, 2013, the EDA Finance Committee directed staff to determine if the City can go after <br /> personal guarantee assets. Staff contacted First National Bank and it was determined that there are <br /> personal assets. However,the bank didn't pursue those assets because it was cost prohibitive. The process <br /> may take several months and it could end up in court.The legal fees, time,and resources required,may <br /> outweigh the benefits.The EDA attorney looked into the matter and she will be present to offer any <br /> comments. <br /> The company defaulted on its loan in 2010 and went bankrupt shortly thereafter. First National Bank has <br /> written off this loan. The remaining balance is $66,729.66. The City of Elk River's Finance Department is <br /> asking that this loan be closed out by the end of 2013.The City's attorney has written a resolution to <br /> close out this account. <br /> Staff is asking that the Finance Committee make a recommendation to the EDA to write off this loan so <br /> that it can be closed out by the end of 2013. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> • EDA Attorney Memo <br /> • November 5, 2013 Staff report <br /> • Ethanol Technology Amortization <br /> • Resolution to write off loan <br /> r 1 ■ E I E I 1 1 <br /> INA1UREI <br />