RES 13-03 • RESOLUTION NO. 13-03
A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF ELK RIVER,AUTHORIZING THE WRITE-OFF OF THE OUTSTANDING
LOAN BALANCE OF $6,894.28 OWED BY THE FORMER NICOLE'S FINISHING
TOUCH SALON TO THE CITY OF ELK RIVER'S DOWNTOWN BUSINESS
REVITALIZATION MICRO LOAN FUND
WHEREAS,Nicole's Finishing Touch Salon, a sole proprietorship, formerly located at 617 Main
Street NW, and the City of Elk River,a municipal corporation entered into a Loan Agreement on
February 8, 2008 for$25,000.00 (Exhibit A); and
WHEREAS,within 8 months of opening the owner began to have trouble keeping up with her
contractual loan payments; and
WHEREAS,in December 2008, the Finance Committee reviewed and recommended approval of a
one year loan extension request from the borrower at the current 3%interest rate and with reduced
monthly payments of$687.61; and
WHEREAS, the EDA approved the Finance Committee's recommendation at their regular January
2009 meeting;and
WHEREAS,in April 2009, the Finance Committee reviewed and recommended approval of a
• second one year loan extension request from the borrower at the current 3%interest rate, reduced
monthly payments of$250.00 and a balloon payment in January 2012; and
WHEREAS, the EDA approved the Finance Committee's recommendation at their regular May
2009 meeting;and
WHEREAS, in November 2011, Ms. Nicole Fox filed for bankruptcy and had it discharged in June
2012, and;
WHERES,in August 2012, staff informed the Finance Committee they had worked the city attorney
but all discussions to date indicated the City no longer had any rights or remedies to collect payment,
and;
WHEREAS, the write off of this delinquent loan is necessary to accurately reflect the accounting of
the City's Downtown Business Revitalization Micro Loan Program; and
WHEREAS, the City's General Fund will not be affected by this write off but the City's Downtown
Business Revitalization Micro Loan Fund balance will be reduced.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Elk River that the City
Administrator (?) is authorized the write-off of the outstanding loan balance of$6,894.28 owed by
the former Nicole's Finishing Touch Salon to the City's Downtown Business Revitalization Micro
Loan Program.
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POWERED IT
ATURi
Passed and adopted by the Elk River Economic Development Authority this 8th day of April ,2013. •
ATTEST: Dan Tveite,President
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Suzanne Fischer,Executive Director
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