5.0.- 8.0. EDSR 11-08-1993 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINATO DATE: NOVEMBER 2 , 1993 SUBJECT: AGENDA MEMO FOR NOVEMBER 8, 1993 EDA MEETING 5 . FINANCIAL UPDATE The following is a summary from Finance Director, Lori Johnson: Revolving Loan Fund The Revolving Loan Fund had a cash balance of $167,577 .71 on October 31, 1993. In October, the loan with Indy Lube was completed and a loan application of $187 .50 was received from Theofii and Jeanne Eggert (Woodsmen Quality Products, Inc. ) As of November 3, all October payments . have been received and all November payments are current with the exception of Roma Tool and PureSteam. The three loans approved in September totalling $82,500 have not yet • been completed leaving cash currently available of approximately $85,000. This is an informational item only and no action is requested. 6 . SUBORDINATION AGREEMENT On Friday, October 29, 1993, the EDA funded its portion of the Indy Lube loan. Indy's primary lender, Security Bank Minnesota, filed a loan in July to cover all of the costs of this project. Eventually, the Security loan will be reduced by the SBA' s debenture financing with Indy Lube. Security Bank Minnesota desires that the Elk River Economic Development Authority execute a Subordination Agreement wherein, the EDA' s interests are subordinated to the bank mortgage, regardless of whether the bank mortgage is entered into and/or filed of record before or after the EDA mortgage. It is likely that a similar agreement will be required with the SBA portion of the Indy Lube financing. Action Requested The EDA is asked to authorize a Mortgage Subordination • Agreement with respect to the Indy Lube financing project. P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment