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<br />SPECL>\L 1\iEETING OF THE ELK RIVER ECONOMIC <br />DEVELOPMENT AUTHORITY <br />HELD AT THE ELK RIVER CITY HALL <br />MONDAY, NOVEMBER 20, 1995 <br /> <br />Members Present: <br /> <br />President GongolL Commissioners Bender, Farber, Holmgren, <br />Dwyer, Scheel (5:58 p.m.), and Duitsman (5:59 p.m.) <br /> <br />Members Absent: <br /> <br />None <br /> <br />Staff Present: <br /> <br />Bill Rubin, Executive Director; Sandra Thackeray, City Clerk <br /> <br />1. Call Meetina To Order <br /> <br />Pursuant to due call and notice thereof, the special meeting of the Elk River <br />Economic Development Authority was called to order at 5:45 p.m. by President <br />Gongoll. <br /> <br />2. Consider a $37,500 Micro Loan Request from Internet Five. Inc. <br /> <br />Executive Director Bill Rubin explained that the EDA Finance Comrnittee has <br />reviewed a Micro Loan request from Internet Five in the amount of $37,500. The <br />money would be used to assist with various start up costs associated with <br />launching a high technology company which will provide World Wide Web <br />services. Bill Rubin further explained that the primary lender has provided <br />$50,000 in financing through an SBA Low Doc loan, the applicants are providing <br />$56,000, and the Central Minnesota Initiative Fund will be asked to provide <br />supplemental financing in the amount of $37,500. <br /> <br />The Executive Director indicated that the EDA Finance Committee met to review <br />the request on November 20 for the second time. At this meeting, the Finance <br />Committee voted to recommend to the EDA that it approve the $37,500 request <br />pending approval of the loan request to the Central Minnesota Initiative Fund, <br />and further provided, that the personal guarantees are collateralized by a <br />piece of real estate. Bill Rubin explained that this will reduce the risk of the EDA. <br /> <br />Commissioner Bender indicated his concern regarding the need for the full <br />$180,000 and further questioned the equity insertion of the company. <br />Commissioner Dwyer indicated that if the company receives the Micro Loan, the <br />funds should be granted on a secured basis by real estate in order to protect <br />the Micro Loan fund money. <br /> <br />Commissioner Scheel arrived (5:58 p.m.) <br /> <br />Commissioner Duitsman arrived (5:59 p.m.) <br /> <br />COMMISSIONER HOLMGREN MOV!:D TO APPROVE THE EDA MICRO LOAN FUND <br />REQUEST IN THE AMOUNT OF $37,500 SUBJECT TO THE PROVISIONS RECOMMENDED <br />BY THE EDA FINANCE COMMITTEE THAT INTERNET FIVE OBTAIN FUNDING THROUGH <br />