03-02-1992 EDA MIN
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SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER PUBLIC LIBRARY
MONDAY, MARCH 2, 1992
MEMBERS PRESENT:
President Gongoll, Commissioners Dwyer, Kropuenske,
Dietz, Holmgren, Schuldt, and Tralle
MEMBERS ABSENT:
None
STAFF PRESENT:
Patrick Klaers, City Administrator; William Rubin,
Economic Development Coordinator; and Sandy Thackeray,
City Clerk
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Economic
Development Authority was called to order at 6:45 p.m. by President
Gongoll.
2. Consider 3/2/92 EDA Agenda
It was the consensus of the Commissioners to approve the agenda.
3.
Consider a Loan Request from Pure Steam Humidifier Company
William Rubin, Economic Development Coordinator, explained that the EDA
Finance Committee had previously met to review a request from Pure
Steam Humidifier Company for a $25,000 loan from the EDA's Revolving
Loan Fund. After the Finance Committee heard a presentation by the
President of the Company, the Committee voted to recommend approval of
this loan. Bill Rubin indicated that the loan repayment will occur
over a four year period at an interest rate of 3.5%. Bill Rubin stated
that the loan requested by the Company will be used to supplement
private financing in order to accomplish the following:
- Purchase tooling for two new products
- Institute advertising for two new products
- Institute advertising program for national trade publications
- Expand inventory
- Finance increasing accounts receivable
Commissioner Tralle informed the EDA that he and President Gongoll had
met with the President of Pure Steam Humidifier Company, Mr. Willard
Morton, and were very impressed with the Company. He stated that he
would recommend approval of the request.
COMMISSIONER TRALLE MOVED TO RECOMMEND APPROVAL OF A $25,000 LOAN FROM
THE REVOLVING LOAN FUND TO PURE STEAM HUMIDIFIER COMPANY. PRESIDENT
GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0-1. commissioner
Kropuenske abstained as his employer is the primary lender for the
Company's other source of financing.
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Economic Development Meeting
March 2, 1992
Page 2
4.
Consider Revision to Loan Fund Guidelines
It was the consensus of the EDA to discuss this topic at the March 9,
1992, meeting.
6. Adjournment
There being
THE MEETING.
CARRIED 7-0.
no further business, COMMISSIONER TRALLE MOVED TO ADJOURN
COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION
The meeting of the Economic Development Authority adjourned at 6:55 p.m.
Respectfully submitted,
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City Clerk