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The Lancaster City Council met for a special meeting on Monday, April 29, 2013 at 7:00 p.m. in the City Hall Meeting Room.  The following members were present: Olson, Stenquist, Barron, Nordin &Hilman.   

The purpose for the special meeting is to review an application to the Revolving Loan Fund from Hanson Manufacturing, Inc. in the amount of $90,000.00.   Olson presented a Loan Analysis Worksheet and a copy of the application review from the loan fund manager of the North West Regional Development Commission.  Hanson Manufacturing requests the loan of $90,000 for a term of 7 years at 1.5% per annum interest rate.  The company would use the money to work on development of a new line of dump trailers and materials for another contract for farm implement disk equipment.  The business has increased considerably in the last tax year, but had suffered setbacks in the recession due to a company they did business with filing bankruptcy.  The loan would help Hanson Manufacturing to maintain their workforce of 12 persons and they project adding two full time jobs in the near future.  Hanson Manufacturing is offering first position on the 2001 Mitisbushi Laser cutter with an estimate market value of $150,000.  Mark Hanson and Sonja Hanson would also sign a personal guaranty.  The council reviewed the information given and discussed the future projects that Hanson manufacturing has in development.  Council also discussed that the collateral offered would qualify Hanson manufacturing for the 1.5% interest rate as set forth in the loan parameters.

Clerk reviewed the loan documentation as provided by Brink, Sobolik, Severson, Vroom & Malm, PA.  The law office has prepared a “Scriveners Agreement”  that informs both parties to this agreement that the law office has potential conflict of interest but has not had any part in loan discussions and negotiations and that if any disagreement arises both parties to the loan would need to have a different attorney office handle the matter.

Stenquist moved to agree to the “Scriveners Agreement” and allow the Mayor to execute said document, second by Barron and carried.

Hilman  moved to provide the loan of $90,000.00 to Hanson Manufacturing at an interest rate of 1.5 for 7 years with equal monthly payments of $1129.33 from the Lancaster Revolving Loan Fund and that the 2001 Mitisbushi Laser cutter along with an additional personal guarantee from Mark & Sonja Hanson shall be adequate security;  and to allow the Mayor and Clerk to execute all documents as needed , second by Nordin.  All voting in favor of the motion to allow the loan, none voting against. 

Meeting adjourned.

Carol Johnson, Clerk/Treasurer







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