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<br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />Request for Action <br /> <br /> <br />To <br />Economic Development Authority <br />Item Number <br />7.2 <br />Agenda Section <br />General Business <br />Meeting Date <br />May 17, 2021 <br />Prepared by <br />Colleen Eddy, Economic Development Specialist <br />Item Description <br />F&M Properties, LLC (Die-Concepts) Microloan <br />Extension <br />Reviewed by <br />Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Approve, by motion, the resolution approving the amendment of loan terms for F&M Properties, LLC <br />(Die-Concepts) and authorization to execute the amended loan documents. <br /> <br />Background/Discussion <br />On May 23, 2016, the city approved a $185,200 Microloan as a short-term loan with a 5-year repayment term to <br />F&M Properties, LLC (Die-Concepts). The proceeds of the note were utilized to pay a portion of the relocation, <br />acquisition and renovation of the mortgaged property located at 18521 Line Avenue NW. They have been paying <br />the loan pursuant to city policy over the past 5 years with a 2% interest rate. Final payment is due June 1, 2021. <br /> <br />The city received a request to extend the terms of the loan repayment by two years. Loan extensions are <br />authorized under the terms of the policy, subject to EDA and City Council approval. <br /> <br />To justify the extension, Mr. Trapp provided a letter from CorTrust Bank stating the bank was unable to match <br />the current terms. Staff requested additional details from the bank to better understand the request. The <br />information was presented to the Joint Finance Committee at a special meeting on May 13, 2021, where they <br />recommended approval of the extension request. <br /> <br />Financial Impact <br />The request does not include additional funding from the city. If the extension is approved, it would provide <br />additional interest at 2% into the fund until the loan is paid in full. The extension would also reduce available <br />funds that could be used for other projects until the loan is paid in full. <br /> <br />Mission/Policy/Goal <br />To assist existing businesses with expansion and attract new businesses to the city whose local operations will <br />expand the city’s economy through job retention and creation and maintain/grow the city’s tax base. The <br />purpose of the Jobs Incentive Program is to encourage the creation of quality, high-paying jobs within the city. <br /> <br />Attachments <br /> May 13, 2021, Joint Finance Committee Meeting Packet <br /> Amended Loan Documents <br /> Resolution