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Motion carried. Voting Yes: Acting Chairperson Strommen, Members Kiefer, Schindel, and <br />Elvig. None. Absent: Chairperson Riley, Members LeToumeau and Steffen. <br /> <br />EDA BUSINESS <br /> <br />Case #1: Consider Revolving Loan Fund for Catheter Technologies <br /> <br />Economic Development Coordinator Sullivan explained that Catheter Technologies has <br />approached the City for assistance with its start-up company. Currently the balance in the City <br />revolving loan fund is $127,074. The amount requested by this business is $34,000, which is <br />approximately 27% of the fund. Brace Youngberg, the owner of Catheter Technologies is <br />present to provide a brief explanation of the company and answer questions. <br /> <br />Bruce Youngberg, Catheter Technologies, provided an overview of Catheter Technologies. He <br />indicated Catheter Technologies will provide component built catheter tubing to the medical <br />device OEM market. Mr. Youngberg provided information regarding his educational and <br />employment experience in the medical device industry. He indicated the business will rent 1,800 <br />square feet of office and manufacturing space in a Sharp and Associates building located on <br />Bunker Lake Boulevard. This office space will be sufficient for at least the first year until <br />expansion is necessary. <br /> <br />Economic Development Coordinator Sullivan advised the revolving loan fund does not currently <br />include any stipulations that the business remain in Ramsey. He would suggest ifa motion is <br />made in support of the loan that it be contingent on the business remaining in Ramsey at least <br />until the loan is paid off. <br /> <br />Member Schindel inquired about the loan terms. Economic Development Consultant Mulrooney <br />replied typically the length of the loan would be similar to the expected life of the asset being <br />financed, likely seven years on equipment; the rate and payment terms would be negotiable. <br /> <br />Member Elvig questioned if this loan would consist of asset lending tied to specific pieces of <br />equipment. Economic Development Consultant Mulrooney replied the Board should discuss <br />this, as well as how the loan will be secured. <br /> <br />Member Kiefer stated he is pleased to see a company like this coming to the community. He <br />inquired about the rent costs included in the business plan, as they seem quite low at $1 per <br />square foot per month. Mr. Youngberg replied the rent costs included in the business plan are <br />the prices that were quoted to him. <br /> <br />Member Kiefer noted one of the biggest causes of business failure is the business being under- <br />capitalized. Mr. Youngberg replied the bank has offered a $50,000 loan with a $52,000 line of <br />credit. He had intended to use his lake cabin for the collateral he needed, but is unable to do that <br />since it does not have a well on the property. He has mortgaged his house since he was unable to <br />use the cabin. Based on that, he would like to request a $50,000 loan if possible, rather than the <br />$34,000 that was originally requested. Mr. Youngberg explained he will be required to acquire <br /> <br />Economic Development Authority/March 8, 2006 <br /> Page 2 of 9 <br /> 2 <br /> <br /> <br />