DISCLAIMER

 

05-0780R


RESOLUTION ACCEPTING A VAN AND A TENT IN SETTLEMENT OF XO LINERS, LLP’S DEBT TO THE REVOLVING LOAN FUND FORMERLY OPERATED BY NORTHSTAR COMMUNITY DEVELOPMENT CORPORATION (NSCDC) AND AUTHORIZING EXECUTION OF A RELEASE.

BY COUNCILOR GILBERT:

      RESOLVED, that the city of Duluth hereby accepts the unencumbered title to 1989 Chevrolet “Hi Cube” van G30 (VIN No. 2GCH31KXK4155984) and a custom process 25x8.5x12 tent in settlement of the debt owed by OX Liners, LLP, to the revolving loan fund formerly operated by NSCDC and authorizing the city’s manager of community development to execute a release substantially in the form of that on file in the office of the city clerk as Public Document No. __________.


STATEMENT OF PURPOSE: On October 24, 2002, Northstar Community Development corporation provided a $17,000 loan out of its CDBG revolving loan fund to XO Liners, LLP, a limited liability partnership, proving services including spray on polymer coatings for trucks, trailers and cars. The encumbered title to a 1989 Chevrolet “Hi Cube” van G30 was pledged as collateral for the loan. The current balance on the loan is $16,208. One of the partners was in a serious auto accident and is disabled. The partnership is no longer in operation and is in default on the loan. Staff recommends accepting the van and a custom process 25x8.5x12 tent in settlement of the claim and authorizing execution of a release.