Revolving Loan Fund Board

Economic Development Revolving Loan Fund Board October 31, 2019 PUBLIC MEETING BOARD MEMBERS STAFF MEMBERS 8:45 a.m. Trent Dowling, Star Bank Karen Soetenga, RLF Staff Conference Room #105 Aaron Reger, First Merchants Mike Austin, RLF Attorney City Hall Amy Freeman, Old National 120 E. 8th Street April Phillips, Controller’s office Anderson, IN 46016 Doug Whitham, Controller’s office Adam Hoeksema, Bankable Greg Winkler, Economic Development CALL MEETING TO ORDER Ms. Soetenga called the Anderson Economic Development Revolving Loan Fund meeting to order. Ms. Soetenga stated an executive session was held to discuss the financial status of loans in the Board’s portfolio. Quorum was established. Item #1: Minutes Ms. Soetenga called for a motion to accept the meeting minutes for July 10, 2019. Mr. Winkler made a motion to accept July 10, 2019 minutes as presented and Ms. Freeman seconded. Motion passed unanimously. Item #2: Loan Renewal – Oakley Brothers - Bankable Mr. Hoeksema, Bankable, briefed Board Members on the loan renewal for Oakley Brothers. Mr. Hoeksema stated the loan was originally for $25,000.00 and one year remains. Oakley Brothers has a good repayment history, is current and 2019 sales surpassed 2018. Mr. Hoeksema stated the renewal request is for 75% of current prime rate for one year. Mr. Reger made a motion to renew Oakley Brother’s loan at an interest rate of 75% of current prime rate and Mr. Dowling seconded. This motion passed unanimously with Bankable abstaining. Item #3: Approval of Semiannual Report Ms. Soetenga briefed Board Members on semiannual report sent by way of email. Brief discussion followed. Ms. Soetenga stated reporting requirements have changed in the Board now reports based on fiscal year and have been upgraded in EDA rating from “B” to “A” and will now be reporting annually instead of bi- annually. Ms. Soetenga stated one of the factors in the rating system is the rate by which your available funds are being utilized and the Anderson RLF is on the edge of having too high a percentage of funds dormant. The Board has one application pending. After a brief discussion, Mr. Whitham made the motion to approve Semiannual Report as presented and Mr. Winkler seconded. This motion passed unanimously. Item #4: Resolution 01-19 – Certifying the Program Plan Strategy and Operation of Board Ms. Soetenga briefed members on Resolution 01-19 a resolution Certifying the Program Plan, Strategy and Operation of the Board. Ms. Soetenga stated the Anderson City Council passed a similar resolution in October. Certifying the Plan is an EDA requirement. Mr. Reger made the motion to approve Resolution 01- 19 as presented and Mr. Dowling seconded. This motion passed unanimously. Item #5: Approval of Invoice for Attorney Services Ms. Soetenga informed members of invoice for attorney services regarding the renewal of Lisa Cook’s loan for $75.00. Mr. Reger inquired if it was a contractual obligation to pay. Brief discussion followed. Mr. Whitham stated ED Staff and Controller’s office review invoices before it goes on to Board of Works for approval, assuring check and balances. Mr. Austin asked if the Board should pass on the attorney cost to the borrower. Ms. Soetenga stated in the last RLF Plan review it was determined that an application fee would be charged at time of closing for new loans, but nothing was discussed regarding renewal fees. After a brief discussion, Mr. Reger made a motion to pay current invoice of $75.00 to Mike Austin and all incoming invoices after review by ED Staff, Controller’s office and Board of Works. Ms. Freeman seconded. Motion passed unanimously. Ms. Freeman made a motion to institute a renewal processing fee of $75.00 moving forward and Mr. Dowling seconded. This motion passed unanimously. Meeting was adjourned. Minutes submitted by Karen Soetenga