Title
RESOLUTION DISCHARGING $112,018.70 IN DEBT OWED BY THE FOLLOWING BUSINESSES TO THE REVOLVING LOAN FUND FORMERLY OPERATED BY NORTH STAR COMMUNITY DEVELOPMENT CORPORATION.
Body
CITY PROPOSAL:
RESOLVED, that the city of Duluth hereby discharges the following loans from the revolving loan fund formerly operated by North Star Community Development Corporation, Fund 263, Community Development Small Business Revolving Loan Fund, and authorizes the city’s manager of community development to execute the release.
Principal
Loan Name Balance Write-Off
Spirit Valley Optical $ 9,506.65 $ 9506.65
Kruse Line Productions 16,257.40 16,257.40
Duluth Tobacco and Gifts 14,875.72 14,875.72
Surfact Expressions 4,982.80 4,982.80
Shawn Mullen’s Metal Work 16,250.95 16,250.95
True Beauty Exteriors 14,957.49 14,957.49
AMK Productions 6,001.02 6,001.02
Schmidt Home Improvements 5,357.49 5,357.49
Arrowhead Residential Lawn Services 13,785.00 13,785.00
Premier Janitorial 6,200.00 6,200.00
Zimmerman’s Zoo 1,058.93 1,058.93
Kitana Katz 2,785.25 2,785.25
$ 112,018.70 $ 112,018.70
Statement of Purpose
STATEMENT OF PURPOSE: In 2004 the city took back the revolving loan fund (RLF) from North Star Community Development Corporation. The RLF portfolio balance as of March 31, 2016 was $112,018.70 for 12 loans. The loans listed for discharge in this resolution total $112,018.70, with interest, and are in bankrupt status past the statute of limitations for collections or have paid well above the original loan amount. The city has worked to recover as much outstanding debt as possible.