DISCLAIMER

 

06-0683R

 

RESOLUTION AUTHORIZING A PROFESSIONAL SERVICE AGREEMENT WITH RANGE CREDIT BUREAU, INC., FOR COLLECTION OF A PAST DUE, OUTSTANDING BALANCE ON A FORGIVABLE LOAN EXTENDED TO INVISION OF DULUTH, INC., D/B/A CONNECTING POINT.

BY COUNCILOR GILBERT:

     RESOLVED, that the proper city officers are hereby authorized to enter into a professional service agreement, substantially in the form of that on file in the office of the city clerk as Public Document No. ___________ with Range Credit Bureau, Inc., (service provider) pursuant to which it will provide for the collection of a past due, outstanding balance plus interest on a forgivable loan promissory note executed by Invision of Duluth, Inc., d/b/a Connecting Point, (Connecting Point) running in favor of the city, said service provider to retain a 33 percent fee on amounts collected except where:

     (a)  Legal action is to be taken; or

     (b)  The account is sent to another out-of-state agency for collection in which event the service provider will retain a 50 percent fee; the balance of all said amounts collected to be remitted to the city, payable into Fund 255.


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize a professional service agreement for collection of a past due, outstanding balance plus interest on a forgivable loan promissory note executed by Connecting Point running in favor of the city.


On April 24, 2002, the city entered into an agreement pursuant to which Connecting Point agreed to expand its operations by relocating to the Technology Village and create at least ten new jobs within two years of relocation. In turn, the city agreed to provide funding for the cost of certain infrastructure improvements in the Technology Village related to the space to be leased to Connecting Point in the amount of $48,306. Connecting Point executed a forgivable loan promissory note which provided that if there was a default under the agreement, Connecting Point would repay the principal amount of $48,306 plus interest.


Shortly after Connecting Point moved into the Technology Village, the company disbanded. No jobs were created and apparently the company’s principal left town. The service provider will attempt to locate the principal and collect on the debt. The service provider will retain a 33 percent fee on the outstanding balance collected; however, in the event that legal action must be taken or the account is transferred to an out-of-state collection agency, the service provider will retain a 50 percent fee. The balance of the amounts collected will be remitted to the city.