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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Economic Development Authority 7.5 <br />Agenda Section Meeting Date Prepared by <br />General Business January 16, 2024 Brent O’Neil, Economic Development Coordinator <br />Item Description Reviewed by <br />Die Concepts Loan Pay-off Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Approve, by motion, the pay-off amount for the EDA loan to Die Concepts. <br /> <br />Background/Discussion <br />The EDA issued a loan in 2016 to Die Concepts to fund equipment at their facility. The loan came to maturity in <br />2023 with a balance of $129,069.73 due as a balloon payment. The EDA and joint Finance Committee have been <br />working with the company on a potential extension of the loan term. Die Concepts has since refinanced this loan <br />with a traditional lender and will be satisfying the EDA loan in full. Staff has determined the pay-off amount to <br />be $130,915.60, which includes accrued interest of 1,845.87. This is based on interest of 2% annually, as stated in <br />the loan agreement. <br /> <br />A provision in the loan agreement allows for the EDA to implement a higher interest rate during the period from <br />maturity to pay-off. Because staff was working with the company on the extension, and based on prior feedback <br />from the EDA, the pay-off amount recommended computes accrued interest at the same rate of 2%. <br /> <br />Additionally, there will be approximately $1,000 in attorney fees associated with the consideration of an extension <br />that will be the responsibility of the borrower. <br /> <br />Financial Impact <br />This confirms the loan pay-off amount of $130,915.60. <br /> <br />Mission/Policy/Goal <br />Support Elk River’s existing businesses through relationship building, programmatic offerings, and high-quality <br />city services. <br /> <br />Attachments <br /> None <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br />Updated: January 2023 <br /> <br />