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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: William Rubin, Executive Directo/( <br /> DATE: October 9, 1995 <br /> SUBJECT: Agenda Memo for October 9, 1995, <br /> EDA Meeting <br /> 6. October Financial Update <br /> Please refer to the financial summary prepared by Assistant City <br /> Administrator Lori Johnson. <br /> Action Requested <br /> The October financial update is an informational item only and no <br /> • action is requested. <br /> 8. Amendment to Elk River Motel Properties Note <br /> At its September meeting, EDA Commissioners considered a request <br /> from Elk River Motel Properties to extend its EDA loan. Authorized in <br /> 1990, the EDA loan to Elk River Motel Properties(i.e. AmericInn) had <br /> an original principal balance of$32,500. It was structured as a ten <br /> year amortization period and contained an interest rate of 7 percent. <br /> A further provision called for a balloon payment on October 1, 1995. <br /> The partners of Americlnn desired to extend this loan and their <br /> request was more thoroughly outlined in a letter dated September 6, <br /> 1995. The EDA approved an extension for a period not to exceed two <br /> years; the extension also called for an increase in the interest rate to <br /> the current prime rate (8.75 percent). The Executive Director was <br /> authorized to negotiate the specifics of the extension. <br /> Included in the agenda packet is an amendment to the original EDA <br /> Note with Elk River Motel Properties. The loan has been extended for <br /> eighteen months and carries the current interest rate referenced <br /> above. In addition to the amendment, it is appropriate to require a <br /> P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />