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Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />4.7 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />Consent <br />May 17, 2021 <br />Colleen Eddy, Economic Development Specialist <br />Item Description <br />Reviewed by <br />F & M Properties, LLC. Microloan Extension <br />Cal Portner, City Administrator <br />Reviewed by <br />Action Requested <br />Adopt, by motion, a resolution approving the amendment of loan terms for F&M Properties, LLC. and <br />authorization to execute the amended loan documents. <br />Background/Discussion <br />On May 23, 2016, the city approved a short-term $185,200 Microloan with a 5-year repayment term to F&M <br />Properties, LLC. (Die -Concepts). The proceeds were utilized to pay a portion of the relocation, acquisition, and <br />renovation of the mortgaged property located at 18521 Line Avenue NW. They have been paying the loan <br />pursuant to city policy over the past five years with a 2% interest rate. Final payment is due June 1, 2021. <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 />To justify the extension, Mr. Trapp provided a letter from CorTrust Bank stating the bank was unable to match <br />the current terms. The information was presented to the Joint Finance Committee at a special meeting on May <br />13, 2021, where they recommended approval of the extension request. <br />Financial Impact <br />The request does not include additional funding from the city. If the extension is approved, it would <br />provide additional interest at 2% into the fund until the loan is paid in full. The extension would also <br />reduce available funds that could be used for other projects until the loan is paid in full. <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 />Attachments <br />May 13, 2021 Joint Finance Committee Packet <br />■ Resolution <br />■ Loan Documents <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional,` 01 e <br />service, and community engagement that encourages and inspires pi ospei l_ y INAWRE1 <br />