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Item # 7 <br /> 111 City of <br /> Elk <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> CC: Lori Johnson, Finance Director <br /> FROM: Catherine Mehelich, Director of Economic Development <br /> DATE: March 10, 2003 <br /> SUBJECT: Micro Loan Application: Lake Assault Custom Boats <br /> Attachments <br /> • Finance Committee Minutes, March 4, 2003 <br /> • Staff Memo to Finance Committee, February 28, 2003 <br /> • Application—Lake Assault Custom Boats <br /> • City of Elk River Micro Loan Fund Policy <br /> Issue <br /> On March 4, 2003, the Finance Committee reviewed a Micro Loan application from Jerry <br /> Atherton of Lake Assault Custom Boats. The Finance Committee unanimously <br /> recommended that the EDA consider awarding Lake Assault Custom Boats a $50,000 <br /> Supplemental Micro Loan. The loan will be used to purchase machinery and equipment <br /> necessary for Lake Assault Custom Boats to begin operations in Elk River. <br /> Jerry Atherton,Lake Assault Custom Boats President,will be available to discuss the <br /> proposed project and answer questions. <br /> Action Requested <br /> Staff requests that the EDA consider approval of the application for Lake Assault Custom <br /> Boats for a $50,000 Supplemental Micro Loan per the recommendation of the Finance <br /> Committee with the following terms: <br /> • Personal guarantee from owner and wife <br /> • Additional financing sources secured <br /> • Secured by 1St lien position on equipment <br /> • Term: 10-year amortization, 3-year balloon payment @ 3.25% <br /> • Structured as participation loan with M & I Bank <br /> • Job performance agreement (2.5 full-time jobs @ no less than $17.00/hour within 2 <br /> years <br />