BY COUNCILOR STAUBER:
RESOLVED, that the city of Duluth hereby accepts $7,000 in settlement of the debt owed by Roger Braun, d/b/a The Trail Blazer, to the revolving loan fund formerly operated by North Star Community Development Corporation, 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 2002 the North Star Community Development Corporation provided a $20,000 loan out of its CDBG revolving loan fund to Roger Braun, d/b/a The Trail Blazer, to purchase equipment to maintain trails and road rights-of-way. The current balance on the loan including accrued interest is $17,517. Since September 2007, Mr. Braun, who is on SSI, has been unable to continue operating his business or make payments on the outstanding balance of the loan. Following extensive negotiations with Mr. Braun, city staff recommends accepting $7,000.00, which are the proceeds of liquidated equipment from the business, as settlement of the claim and authorizing execution of a release.