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. __________.
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.