DISCLAIMER

07-0513R


RESOLUTION ACCEPTING $4,933.94 IN SETTLEMENT OF THE DEBT OWED BY JOSHUA THOMAS VOLDEN, DOING BUSINESS AS BROTHER EARTH, TO THE REVOLVING LOAN FUND FORMERLY OPERATED BY NORTH STAR COMMUNITY DEVELOPMENT CORPORATION (NSCDC) AND AUTHORIZING EXECUTION OF A RELEASE.

BY COUNCILOR STAUBER:

     RESOLVED, that the city of Duluth hereby accepts $4,933.94 in settlement of the debt owed by Joshua Thomas Volden, d/b/a Brother Earth, to the revolving loan fund formerly operated by NSCDC payable into Fund 263 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:  In 2005 the North Star Community Development Corporation provided a $10,000 loan out of its CDBG revolving loan fund to Joshua Thomas Volden, d/b/a Brother Earth, providing skateboarding equipment and accessories. The current balance on the loan is $8,223.24. Mr. Volden was unable to continue operating the business and moved to the state of Florida leaving the loan in default. Following extensive negotiations, staff recommends accepting $4,933.94 in settlement of the claim and authorizing execution of a release of the remaining balance of $3,289.30.