07-31-1995 EDA MIN - SPECIAL - Laserfiche WebLink

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SPECIAL MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL JULY 31,1995 Members Present: President Gongoll, Commissioners Duitsman, Holmgren, Farber Members Absent: Commissioners Bender, Scheel, Dwyer Staff Present: Bill Rubin, Executive Director; Michelle Dwyer, Recording Secretary 1. Call Meetinq To Order Pursuant to due call and notice thereof, the special meeting of the Elk River Economic Development Authority was called to order at 4:50 by President Gongoll. Consider July 31, 1995 Aqenda COMMISSIONER FARBER MOVED TO APPROVE THE JULY 31, 1995 AGENDA. COMMISSIONER HOLMGREN SECONDED THE MOTION. MOTION CARRIED 4-0. 2. Consider Loan Request From Custom Cutter Grinding Corporation rCarpe Kairos Limited Liability Company - LLCl Executive Director, Bill Rubin, informed the EDA Commissioners, the EDA micro- loan would be used by Carpe Kairos to leverage primary financing and owner equity for the construction of a 10,000 square food multi-tenant industrial building on Lot 3, Block 1, Rail 10 Industrial Park. Carpe Kairos is a group comprised of officers of Custom Cutter Grinding. Custom Cutter Grinding would occupy 4,000 square feet within the building, and the remaining 6,000 square feet would be made available for lease in spaces of 1,500 square feet or more. The EDA is asked to approve a micro-loan in the amount of $50,000 to Carpe Kairos, LLC. The loan will be secured by: · A second real estate mortgage on Lot 3, Block 1, Rail 10 Industrial Park; . A Promissory Note; and, . A Guaranty of Mortgage. The loan will be repaid over 15 years with an initial interest rate of 9.0 percent (the current prime rate). The rate will be adjusted at 6 rnonth intervals - floating with prime. Initial rate of 9 percent; tied to the lowest prime rate as published in the Wall Street Journal; adjusted semi-annually (at 6 month intervals); 15 year term.