7.0. EDSR 09-11-2000 Item #7
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
TO: Economic Development Authority
FROM: Marc Nevinski, Assistant Director of
,/.i Economic Development
DATE: September 11, 2000
SUBJECT: Olde Main Eatery Micro Loan
Issue
The Olde Main Eatery has fallen behind in its Micro Loan payments. The following
remedy has been proposed and is submitted for the FDA's consideration.
Background
In October of 1997 a $50,000 Micro Loan was awarded to the Olde Main Eatery.
The terms of the loan include an 8.5% interest rate with a five-year balloon
mik payment. A review of Olde Main's repayment history indicated that generally the
111 loan was kept current during the first two years of the term. However, only two loan
payments have been received so far this year, leaving principal and interest due in
the amount of $3446.59 for the period of March 2000 through September 2000.
To remedy the situation, staff has proposed that Olde Main pay its accrued interest
through September and then make regular monthly payments starting October 1,
2000. Staff recommends that the loan be re-amortized to fit within the currently
established loan term, which would result in a monthly payment of $505.54. Olde
Main's current monthly payment is $492.37.
Action Requested
Staff requests that the EDA consider approving the payment of accrued interest
through September 2000 by the Olde Main Eatery and re-amortizing the loan to
adjust monthly payments to $505.54.
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13065 Orono Parkway • P. 0. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment