7.5. EDSR 01-16-2024
Request for Action
To Item Number
Economic Development Authority 7.5
Agenda Section Meeting Date Prepared by
General Business January 16, 2024 Brent O’Neil, Economic Development Coordinator
Item Description Reviewed by
Die Concepts Loan Pay-off Cal Portner, City Administrator
Reviewed by
Action Requested
Approve, by motion, the pay-off amount for the EDA loan to Die Concepts.
Background/Discussion
The EDA issued a loan in 2016 to Die Concepts to fund equipment at their facility. The loan came to maturity in
2023 with a balance of $129,069.73 due as a balloon payment. The EDA and joint Finance Committee have been
working with the company on a potential extension of the loan term. Die Concepts has since refinanced this loan
with a traditional lender and will be satisfying the EDA loan in full. Staff has determined the pay-off amount to
be $130,915.60, which includes accrued interest of 1,845.87. This is based on interest of 2% annually, as stated in
the loan agreement.
A provision in the loan agreement allows for the EDA to implement a higher interest rate during the period from
maturity to pay-off. Because staff was working with the company on the extension, and based on prior feedback
from the EDA, the pay-off amount recommended computes accrued interest at the same rate of 2%.
Additionally, there will be approximately $1,000 in attorney fees associated with the consideration of an extension
that will be the responsibility of the borrower.
Financial Impact
This confirms the loan pay-off amount of $130,915.60.
Mission/Policy/Goal
Support Elk River’s existing businesses through relationship building, programmatic offerings, and high-quality
city services.
Attachments
None
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023