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Member McGlone disagreed that this loan was low risk and stated the nature of the business <br />makes this high risk, the fitness equipment will be worthless which makes it high risk, and the <br />term of the loan makes it high risk. He stated for these reasons he will oppose this loan and felt <br />this was not a wise loan to be making. <br />Member Steffen asked how difficult it would be to enforce the personal guarantee. <br />Mr. Mulrooney felt that if the business failed the EDA would not have to enforce the personal <br />guarantee and the loan would be paid off in full. <br />Member LeTourneau asked if this loan request met all of the RLF criteria. <br />Mr. Mulrooney replied in the affirmative. <br />Motion by Member LeTourneau, seconded by Member Skaff, to approve the proposed City of <br />Ramsey Economic Development Authority Revolving Loan Fund Application. <br />Motion carried. Voting Yes: Chairperson Riley, Members LeTourneau, Skaff, Steffen, and <br />Williams. Voting No: Members McGlone and Wise. Absent: None. <br />4.04: Prospect Update, Mike Mulrooney <br />Mr. Mulrooney reported he has been working with a manufacturing prospect on expansion of its <br />current 40,000 square foot facility to a 60,000-80,000 square foot facility. He stated there are <br />two sites available and further information will be provided at the next EDA meeting. <br />4.05: Anoka County HRA, Economic Development Activities <br />Chairperson Riley stated the EDA received direction from the City Council on Tuesday that the <br />City will not be asking for EDA participation; as a result, the EDA does not need to discuss this <br />item. <br />4.06: Business Retention & Expansion Program Introduction, Continued <br />Chairperson Riley asked if the EDA was in agreement that staff should proceed as outlined in the <br />staff memo. <br />It was the consensus of the Economic Development Authority to approve the proposed plan for a <br />business retention and expansion program. <br />4.07: 2013 EDA Budget <br />Chairperson Riley asked if there was anything in the 2013 EDA budget that is contrary to the <br />EDA work plan. He also asked if the EDA was interested in further discussing the 2013 EDA <br />budget as presented. <br />Economic Development Authority/October 11, 2012 <br />Page 5of6 <br />