11-20-1995 EDA MIN - SPECIAL
SPECL>\L 1\iEETING OF THE ELK RIVER ECONOMIC
DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 20, 1995
Members Present:
President GongolL Commissioners Bender, Farber, Holmgren,
Dwyer, Scheel (5:58 p.m.), and Duitsman (5:59 p.m.)
Members Absent:
None
Staff Present:
Bill Rubin, Executive Director; Sandra Thackeray, City Clerk
1. Call Meetina To Order
Pursuant to due call and notice thereof, the special meeting of the Elk River
Economic Development Authority was called to order at 5:45 p.m. by President
Gongoll.
2. Consider a $37,500 Micro Loan Request from Internet Five. Inc.
Executive Director Bill Rubin explained that the EDA Finance Comrnittee has
reviewed a Micro Loan request from Internet Five in the amount of $37,500. The
money would be used to assist with various start up costs associated with
launching a high technology company which will provide World Wide Web
services. Bill Rubin further explained that the primary lender has provided
$50,000 in financing through an SBA Low Doc loan, the applicants are providing
$56,000, and the Central Minnesota Initiative Fund will be asked to provide
supplemental financing in the amount of $37,500.
The Executive Director indicated that the EDA Finance Committee met to review
the request on November 20 for the second time. At this meeting, the Finance
Committee voted to recommend to the EDA that it approve the $37,500 request
pending approval of the loan request to the Central Minnesota Initiative Fund,
and further provided, that the personal guarantees are collateralized by a
piece of real estate. Bill Rubin explained that this will reduce the risk of the EDA.
Commissioner Bender indicated his concern regarding the need for the full
$180,000 and further questioned the equity insertion of the company.
Commissioner Dwyer indicated that if the company receives the Micro Loan, the
funds should be granted on a secured basis by real estate in order to protect
the Micro Loan fund money.
Commissioner Scheel arrived (5:58 p.m.)
Commissioner Duitsman arrived (5:59 p.m.)
COMMISSIONER HOLMGREN MOV!:D TO APPROVE THE EDA MICRO LOAN FUND
REQUEST IN THE AMOUNT OF $37,500 SUBJECT TO THE PROVISIONS RECOMMENDED
BY THE EDA FINANCE COMMITTEE THAT INTERNET FIVE OBTAIN FUNDING THROUGH
Special Meeting EDA
November 20, 1995
Page 2
THE CENTRAL MINNESOTA INITIATIVE FUND AND THAT THE PERSONAL GUARANTEES
BE COLLATERALIZED BY A PIECE OF REAL ESTATE WITH THE VALUE IN THE AMOUNT
OF THE LOAN REQUEST. COMMISSIONER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 4-1-2. Commissioner Bender opposed. Commissioners Scheel
and Duitsman abstained as they were not present to hear the discussion on this
matter.
3. Adiournment
There being no further business, COMMISSIONER BENDER MOVED TO ADJOURN
THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The special meeting of the Elk River Economic Development Authority was
adjourned at 6:00 p.m.
Respectfully submitted,
Thackeray
City Clerk