6.6 EDSR 08-21-2017 Cit of
Request for Action
River
To Item Number
Economic Development Authority 6.6
Agenda Section Meeting Date Prepared by
General Business August 21,2017 Amanda Othoudt,EDD
Item Description Reviewed by
Director's Report Cal Portner, City Administrator
Reviewed by
Action Requested
Information presented for discussion only in effort to keep the EDA updated on development activity.
Background/Discussion
BUSINESS VISITS
Eleven BR&E visits have been completed this year. Three more retention visits are scheduled with Big
Tex Trailer World,Atlas Staffing and Dolphin Car Wash.Watch for the emails and please RSVP to let us
know if you are able to attend.
BUISINESS INQUIRES
We continue to work with two business expansion inquiries and have responded to one new business
�`' inquiry in the last month.
MISCELLANEOUS
Ethanol Technologies
Staff continues to pursue collection of the Ethanol Technology debt.Amanda will be participating in
mediation for the collection of the debt owed by Ethanol Technology on August 22. The original loan of
$74,000 was issued August 25, 2008.The EDA received a personal guarantee from Bart Wells, owner of
Ethanol Technology and Hi-Tech Motorsports. In addition to the personal guarantee,the EDA also
secured corporate guarantees from both companies. The EDA is owed approximately$78,000 which
includes both principle and interest.Any settlement will have to be approved by the EDA Board.
Revolving Loan Fund Balance Reports
At the request of members,a copy of the Revolving Loan Fund report is attached.
Financial Impact
None
Attachments
• Revolving Loan Fund Balance Report,August 4,2017
i, E I E
[NArujRE
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MICRO LOANS
Current Current 8/14/17
Loan Loan Interest Term Monthly Principal
Borrower Date Amount Rate (Months) Payment Outstanding Current
Die Concepts 6/3/2016 $185,200 2.00% 60 $936.90 $176,277.95 Y
Ethanol Technology 8/25/2008 $74,000 3.00% 60 $716.03 $66,729.66 N
Heritage Millwork 12/22/2016 $100,000 3.00% 60 $965.61 $95,028.03 Y
Patriot Converting 5/5/2016 $200,000 3.00% 60 $3,593.74 $152,689.60 Y
Preferred Powder 10/1/2013 $100,000 3.00% 60 $967.61 $65,169.60 Y
Ralphies 9/10/2013 $74,999 3.00% 120 $724.20 $47,839.73 Y
TOTAL MICRO LOANS $603,734.57 Micro Loan Fund 240
Distinctive Iron 3/3/2015 $126,000 2.03% 60 $874.72 $107,040.56 Y
Scott Morrell LLC 8/6/2015 $200,000 2.00% 60 $1,011.77 183,355.42 Y
$290,395.98 DEED Jobs Incentive Loan Fund 242
Fund Cash Balances 8/14/17:
Micro Loan Fund-240 $649,468.80
State DEED Jobs Incentive-242 $136,080.07
Federal DEED $0