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MOUNDS 1VIEW City of Mounds View Staff Report Item No: 6A Meeting Date: October 14, 2019 Type of Business: EDA Business Administrator Review: To: EDA President and Commissioners From: Brian Beeman, Assistant City Administrator Item Title/Subject: 19-EDA-330 A Resolution Approving Forgiveness of a Loan Issued Under the Emergency Deferred Loan Program Introduction: Carol Storey received an Emergency Loan in the amount of $1770.00, with a 0% interest rate, on July 13, 2017 to replace steps at her residence located at 5702 Cabot Drive, Mounds View in Colonial Village. The EDA has been informed that Carol has since passed away, and that she did not leave a will or other directive. The EDA has further discovered that the manufactured home does not hold any value. The Note associated with the loan identified above specified that Carol was to make monthly payments in the amount of $35. No payment was ever received by the EDA, resulting in a remaining principal balance of $1,770.00. The cost to remove and demolish the home is estimated at $2,500-$7,000 presenting an overall negative value. Colonial Village has stated to Lorrie Brodle, Carol's daughter that she either can pay to remove the trailer herself or she can transfer ownership to Colonial Village by supplying a clean title and Colonial Village will remove the trailer at no cost. However, The EDA must first forgive the loan and remove its security interests and lien on the title before the manufactured home can be moved. Despite having no apparent legal or financial obligation to do so, Lorrie Brodle is trying to resolve the matter. Discussion: Lorrie Brodle is asking the EDA to forgive the loan in the amount of $1770.00. Since this is the EDA's loan program, the EDA has the authority to forgive the loan in the event of a default. Strategic Plan Strategy/Goal: Create and maintain a positive business climate where businesses want to locate and remain in Mounds View. Maximize utilization of development space and current redevelopment sites. Fill vacant space and support redevelopment & development. Continue and focus on public relations activities. Financial Impact: $1770.00 Recommendation: 1) Should the EDA choose to forgive the loan, then staff will undertake all steps necessary to remove the EDA's security interests in the collateral. 2) Should the EDA choose not to forgive the loan, and request that Lorrie give the title to the EDA, then Colonial Village will be requiring a monthly rent charge from the EDA since the EDA would become the title holder. The EDA would also be responsible for removing the trailer at an additional cost of $2,500-$7,000. Consider 19-EDA-330, a resolution forgiving Carol Storey of an EDA Emergency Loan in the amount of $1770.00. The Mounds View Vision A Thriving Desirable Community.