EDA Agenda 09-23-2013 (Special Meeting)SPECIAL EDA MEETING
Monday, September 23rd, 2013 — 5:15 p.m.
Academy Room - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer
Tracy Hinz, Vice Treasurer Matt Frie, Rod Dragsten and Council
members Tom Perrault, Brian Stumpf
Staff: Executive Director Jeff O'Neill, Wayne Oberg, Angela Schumann
1. Call to Order
2. Purpose of Meeting: Consideration of approving a GMEF loan extension
3. Adjournment
EDA Special Meeting Agenda: 09/23/13
2. Consideration of approving a GMEF loan extension (WO)
A. REFERENCE AND BACKGROUND:
Tapper's Holdings, LLC, has a GMEF loan with a balloon payment due on October 1, 2013.
The company is the process of securing financing from other sources. But it is unlikely the
other sources will be available by the due date. The company's management has indicated that
a 90 day extension would provide enough time for the other sources to process the
refinancing.
The GMEF has sufficient funds to loan to other businesses during the extension. The interest
rate on the loan is 3.5 %.
The principal payment due on October 1, 2013 is $137,221.89.
Al. Budget Impact: The 3.5% interest rate the city could earn on the extension exceeds
any return it could realize over the same investment horizon.
A2. Staff Workload Impact: Minimal
B. ALTERNATIVE ACTIONS:
Motion to approve an interest only, three month GMEF loan extension for Tapper's
Holdings, LLC at a rate of 3.5 %.
2. Motion to deny approval of an interest only, three month GMEF loan extension for
Tapper's Holdings, LLC at a rate of 3.5 %.
C. STAFF RECOMMENDATION:
City staff recommends Alternative #1.
D. SUPPORTING DATA:
None