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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> 0 <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Paul T. Steinman,Director of Economic <br /> r ._ <br /> Development <br /> DATE: October 7, 1999 <br /> SUBJECT: Agenda Memo for October 11, 1999, EDA <br /> Meeting <br /> 5. Consider ProTech Engineering Micro Loan Request <br /> Please see the attached memo and supporting information from <br /> Assistant ED Director Marc Nevinski. <br /> • 6. Consider Alternatives to Pursue Collection From Northstar Die <br /> Casting <br /> Issue <br /> The EDA provided a $50,000 micro loan to Northstar Die Casting in <br /> 1998. Since that time the company has run into a number of <br /> significant challenges to staying in business and approximately six or <br /> seven months ago, went out of business. At that time the owner of <br /> Northstar Die Casting merged the assets of the company with another <br /> company he owns and changed its name to Badger Die Casting and <br /> continued operations. Steve Whiting is the owner of Badger Die <br /> Casting and previously, the owner of Northstar Die Casting. Mr. <br /> Whiting has a number of other businesses that he operates in <br /> Wisconsin. North Star Die Casting has not made a payment on the <br /> micro loan since February 1999, and currently owes approximately <br /> $47,000 plus interest. <br /> The EDA secured its position on this micro loan with a personal <br /> guaranty from Steve Whiting and his partner at the time, Larry <br /> Lawson. Several months ago staff began the process of collecting on <br /> this loan by serving notice to Steve Whiting and Larry Lawson that <br /> 41, our intention is to file suit to collect on the loan based upon their <br /> personal guarantees. <br /> 13065 Orono Parkway • P. 0. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420• Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />