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EDA Agenda 08-20-2002
AGENDA 1VIONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, August 20, 2002 - 4:00 p.m. City Hall ~ Academy Room MEMBERS: Chair Bill Demcules, Vice Chair Barb Schvvientek, Assist'i'reasurer Ken Maus, Clint Herbst, Roger Carlson, Ron Hoglu-x~l, and I)arrin Lahr. S"1'AH'H'; Treasurer Rick Wollsleller, l~,xccutive Director Ollie Koropchak, Recorder Lori Kraemer. Gi TEST: Don Tomann, U MC. l . Call to Order. 2. Consideration to approve the June 18, 2002 EUA minuses. 3. Consideration ol~ adding or re~tloving agenda items. 4. Consideration to review for discussion the preliminary GMEF loan application For tJlira Machining Company (l1MC). 5. Public Hearing and consideration to approve or deny GMEF No. 022, a bL1SInCSS sLlbsldy, for iJMC. 6. Flock i5 Improvements - b;DA Preliminary sketches and cost estimates,.aild City Council action of August 12, 2002. 7. Executive I)ircctor's Report. 8. Other Liusiness. 9. Adjournment. r~ MINUTES MOiVTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, June I$, 2002 - 4:00 p.m. City Hall -Academy Room MEMBERS PRESENT: Chair Bill Demeules, Assist Treasurer Ken Maus. Roger Carlson, and Ron Hoglund. MEMBERS ABSENT: Vice Chair Barb Schwientek, Clint Herbst, and Darrin Lahr. STAFF PRESENT: Executive Director Ollie Koropchak. GUESTS: Lance Hoffkopf, Genereux Fine Wood Products, Inc. Al Loch and Karen Schneider. 1. Call to Order. Chair Demeules called tlae EDA meeting to order at 4:15 p.m. 2. Consideration to a rove the A ril 23. 2002 EDA minutes. Roger Ccu•Lti~on made cr nzntlon to crppr•ove the April 23, 2002 ED~1 minutes. Ron Hoglalnd s'ec•onclecl the ntutiu/7 cr/rcl 1i•ith no corrections ur° uddrtions, the nrinrrtes tinere ctpprr)vecl as tivritten. 3. Consideration of addin~~ or removing= agenda items With the remaining balance ($;9.127.72) for GMEI~ Loan No. 010 paid-off by Blue Chip Development Company (Vector Tool) on May 20, 2002, the EDA is requested to approve two Satisfaction of Mortgages relating to the loan. Ron Hc)gl/rnd made cr motion to upprcn'e the ScrtlsJac•t/c)n pf lLlc)YtgC/~res for Blue Chip Devc~laprnent Company, the mortgcr~ror: il~Io/°t~~rcrge filed Oct~bc~r 13, 1992, and the Amended ;Llortgagc filet! ~. Nove~mhc~r 17, 1992. ~lIOrtgage fried ~~'ovemher 2cY, 199.5. Ken 1Llcnrs seconded the motir)r7 ur/cl tirith no.finYher discussion, the motion ccrrriecf 4. Consideration to hear an a date from ro erty owners of Block ;~. • AI Loch and Karen Schneider, property owners, on Block 35 reported that the arrangement bztween the city and property owners for 2001/02 snow removal worked well. The property owners had a joint snow removal arrangement whieh provided the service at a lower cost and the city plowed the alley. March and April had heavier snow falls; however. there ~~~as no ice built-up. Commissioners did recognize the unknown future of the Grassi lot and the roof draina~~e problems. Loch remembered the proposed EDA Minutes - 6/18/02 parking abuttin<, the south edge of the alley. Via Koropchak, Wojchouski noted the need for a parkiny~ monument at Third Street and Pine Street. With the planned County Road 75 project to begin in July- the property owners and commissioners agreed to delay any improvements to the Block ;5 alley or area until completion of County Rd 75 or 200;. Loch would contact Steve Grittman relative to the proposed design options. EDA members thanked the property owners far the update. 5. Consideration to review for discussion the reliminarv GMEF loan a lication for Double Bull Archery. Inc Double Bull Archery, aseven-year old, local company. is reduesting a $0,000 GMEF loan to purchase the Lake Tool, Inc. building located at 1347 Dundas Circle from Eric and Carl Bondhus. The company has a Letter of Intent to purchase the facility. Double Bull Archery designs and makes ground blinds for the hunting industry. 1"hey plan to consolidate their Monticello and Elk River production lines into one facility creating an additional ~ full-time jobs in Monticello. Currently, they employ 9 full-titrte people. A letter of credit worthiness was provided by the lender; however- no letter of financial commitment from the lender, James Vathing, Associated Minnesota Bank, St. Louis Park has been submitted. Koropchak then reviewed the preliminary loan application for compliance with the EDA-GMEF Guidelines. Koropchak advised the EDA, the National Bank of Mimleapolis prime rate as of June 18, 2002, is 4.75%. No action was necessary by the EDA. 6. Consideration to a rove or denv GMEF No. 020 for Double Bull Archerv. Inc. Having determined that the preliminary real property acgLtisition loan application from Double Bull Archery encouraged economic development and complied with the EDA Business Subsidy Criteria. Ken ~(cnrs rrtcrcle cr motion to upprave G:LIEFiVo. 0?Of~rr Datrhle Brrll. LLC', in the amount of SAD, 000. The rein property crcgtrisitior~ lucre art - 2.7~% fixed interest r•crte, amorti=ecl ol~er ZOyears tirith hallonn in,fi've years. Locrn,fee of SZOU. Locrn hec•ornes null anc! void Dec•ernhc~r I8. 2002, if funds ore not disbursed. G~LlEF lc~~>cr1, fi.~es r•esponsihility of~the applicant. C'ollcrter°al, guarantees cmc! othc~r- COYIClItlOrr reclrli!'C'17rL'r11.S t0 he cletL'/'minL'C! trot! pr•epcn•ec! by the G~LIEFAttorr~ey. The Ga•/F.F lrrun upprnval is strhject to lender commitment trot! C'aunci! rcrtificutinrT /rf~the ED.-{ crctic~n. .)econcled hi~ Rower C'urlson CIr7Ll lPltl7 no fZrr'ther CILSCd/.5'.S'iOn, tl7e 1910110x7 c•urriec! City Council to consider EDA action on ,lone 24, X002. • EDA Minutes - 6/18/02 7. Consideration to review for discussion the reliminarv GMEF loan a lication for Ta er•s_ Inc. Lance Hoffkopf of Genereux Fine Waod Products attended the EDA representing Tappers Inc. Tappers. Inc. is requesting a $5,000 GMEF loan for equipment purchases to take advanta~~e of computer design software which interface with CNC equipment. Purchase of the equipment will increase full-time employment by 6, this in addition to their current ~8 full-time employees. The company was established in 1981 and moved to Monticello in 1990. The company was previously approved for two GMEF loans of which both balloon payments have been paid-off. Their lender, Steve Domine, Stearns Bank. St. Cloud, submitted a letter of credit worthiness and commitment to finance the machinery/equipment. Koropchak reviewed preliminary application for compliance and noted that the amount of equity was reduced to the I O% of the EDA loan per the lender, as the lender did not require equity in the amount of 20% of the bank loan. It is anticipated the loan will close in September. Again, National Bank of Minneapolis prime rate as ofJune 18. 2002. is X1.75%. No action necessary by the EDA. 8. Consideration to a rove or deny GMEF No. 021 for Ta er"s. Inc. Havin~~ determined that the preliminary machinery/equipment loan application from Tappers Inc. encouraged economic development and complied with the EDA Business Subsidy Criteria, Ken ;Llcrtrs nzucle cr motion tv approve G~~IEFLocrn Nv. 02I fvr• Topper's Inc. in thc~ unzvurzt of S~J, O00. They nz~rchinery/c~cfuipmerrt loan to he umr~rti=c~cl oti~er ~ yc~cn•.5' crt a fixc~cl intc~rest rate of 2.7j `%. Locrn.fec~ af~SZOO. Loon hc~c•vnzes null crncl void if fzrrzc/s rzvt clishtrrsec/ by Dt~cenzber• I <Y, 2(10?. GIi~1EF Iegul fees the re~spons'ihihty of thc~ crpp/iccrnt. C'o//crter•crl, ~ruurarrtecs, crrrcl other covrclitions to he ~leternzirzed by thc~ EDrI Attorncv. G:L/EF locrrz upprvvcrl is srrhjc~c•t to C.'orrncil rcrtific•crtion ~f the ED,~1 uc•tivrz. Ron Hv~rlarrzcl s•c~cvnc/ecl the motion pncl with no.firrlher disetrs'sion. the motion curriecl. Members noted Tappers past success record with the EDA. Council will consider the EDA action on June 2~1. 2002. . 9. Executive Director's Re ort. a) Noted the revised EDA Balance Sheet of December 31, 2001, relative to the 2001 Liquor Fund reimbursement as suggested by EDA. b) Noted letter to Bruce and Cindy Hamond relative to non-performance date of IViay 29, 2002 for DNIRF Grant No. 1 1 1 as su4~~~ested by EDA. c) TIF process in progress for the UMC and Production StampinMJ projects. GMEF loan application submitted in Au~~ust. d) Working with two other industries. • • EDA Minutes - 6/1$/02 10. Other Business. None. 11. Adjournment. Ken Maus recommended the FDA meeting adjourn. Meeting so adjourned. • ~~ ~ ~ ~ ~~, Ollie Koropchak, Recorder 4 EDA Agenda - 8/20/02 4. Consideration to review for discussion the relimina CiMEF a lication for UMC. • A. Reference and Background: GMEF Loan Application: See Attachment A. Request is fora $200,000 real property acquisition and development loan. Project Summary: 111tra. Machining Company (UMC), is ISO certified and specializes in medical, aviation, and commercial jobs. 60% medical surgical instruments, operating and emergency room equipment, laboratory and hospital equipment. 20%, aviation fiicl delivery system components, engine components, and other aircraft parts. 20%~ industrial fiicl cells, radiator plates, fluid control equipment, construction ind~.istry equipment. iIMC was established ita 196$ and currently resides in Corcoran, MN. 'They plan to acquire 10 acres of industrial zoned land in the Monticello Commerce Center, located along East Chelsea Road to the west of "Twin City Die Castings. The company's initial plans were to construct a 60,000 sy ft office/manufacturing facility. According to Ed Sorgatz, Olson General Contractors, the preliminary building elevations show a 72,000 sq 1t facility. Sec Attachment B. Projected job and wage goals. See Attachment C. Letter of intent to finance the project from Kurt Schrupp, Twin City Federal. The City is applying for a Minnesota Small Cities Economic Development Grant in the amount of $290,000 to assist with the acquisition and construction financing. A Central Minnesota lnitiative Fund Loan in the amount of $250,000 will assist in financing of the machinery and equipment. The EDA loan of $200,000 was part of'the proposal submitted to the company from the City of Monticello in April 2002. The 1J'UA should review the preliminary application for compliance with the F;llA-CiMIF Business Subsidy Criteria. [;STIMATE:D PRU.IIJCT COSTS: Land acquisition $ 400,000 Construction $2,600,000 Site lrnprovements $ 195,000 Machinery & Equipment $1,000,000 "I'U~I'AL $4, X95,000 • FDA Agenda - 8/2(1/U2 GREATER MONTICELLO ENTERPRISE Ft_1ND GUIDELINES LJ PUBLIC Pt1RPOSE CRITERIA: Must comply with four or more of the criteria listed below, criteria # 1 being mandatory. Job Cioal: 120 full-time jobs to the City of Monticello within two years of the benefit date. Wage Goal: At least 4.5 oC` the new jobs must pay a wage of the higher of $9.00 per hour, or at least 1 fi0% ol` the federal minimum wage, exclusive of benefits, for individuals over the age oI~ 20 during the term of the assistance. See Attachment B. • Annual reports are required until termination date. Failure to meet job and wage goals require partial or• full payment ol` the assistance plus interest. 2. Increases the community tax base: $2,600,000 EMV. $_51,250 Tax Capacity. Annual Property Taxes, $74,752. 3. h'actors: "i'o assist a r~ew mantrfacttu•ing business to expand their operations. Other factors for consideration but no limited to: Nature of business (manufacturing), no availahility of service and product currently, potential adverse cnvironmcntal effect (none), and compatibility to the comprehensive plan and coning policy (yes, acceptable in 1-1 A zone.) 4. tJseci as a secondary source to supplement conventional financing. The GMEF' and SCI/U(i are secondary sources of financing for the real estate. CMIF' for M&1~;. 5. CJseci as gap financing: Used to encouraged growth and job creation within Monticello. 6. Use:cl to assist other Iunds: L1sed to obtain State and Regional Funds. GREATER MONTICELLO ENTERPRISE Ft1ND POLICIES BiJSINF.SS F:LIGlF311,1'1~Y Industrial business: Ycs. 2 r1 LJ EDA Agenda - S/20/U2 Located within city limits: Yes, 7oncd 1-lA. Credit worthy existing business: Ktu't Schru , "I'CF forthcomin r pp ( b) $10,000 loan per each job created. $10,000 X 124 = $1,240,000. Or $5,000 per every $20,000 increase in property market valuation, whichever is higher. $2,600,000 divided by $20,000 = $130 X $_5,000 _$(50,000. Criteria; $1,240,000 II. FINANCING ME"I~1IOD: Companion Direct Loan: All such loans may be subordinated to the primary lender if I•equesied by the primary lender. The GMh:h' is leveraged and the lower interest rate ol~the GMEF lowers tl~e effective interest rate on the entire project. t:riteria: The GMEF takes a shared second position on the real estate loan. [I1. USh:S UI~' PROCEF,US: Real property acquisition and devclopmertl. • IV. Th;KMS AND CONDITIONS: Loan Si?c: Maximum not io exceed SO`% of the remaining revolving loan fr.uui balance. Cash balance as of August 19, 2002, $715,782.40. Request: $200,000. Criteria: $20(1,000. Remaining balance thcrcalter, $537,782.40. $200,000 was the amount within the proposal from the City of Monticello. Leveraging: Minirnrun 60%, private/public non-GMF h' Maxrlnum 30"/o public (GMF.,F) Minimum 10% equity of F:I)A loan Proposed Lender $1,838,000 (54.1 %,) 'I'1 F $ 395,000*(1 l .fi°/,) GMLF $ 200,000 (5.89°/,) SCEDCi $ 290,000 (8.54%) Eduity $ 672,000 (19.79%) "TOTAL $>,395,000 (99.92`%) 3 C7 IJllA Agenda - 8/20/02 C] • * Company plans to sell TIF pay-as-you-go note. Loan "Perm: Kcal estate property maxit~urn ol` _5-year maturity amortized up to 30 years. Balloon payrncnt at _5 years. Recommended: Amortization consistent with lender, not to exceed 3U years. Balloon payment in year 5. Interest mate: Fixed rate not less than 2% below Minneapolis prime rate. Prime rate per National Bank of Minneapolis on date of 1~:DA loan approval. Prime rate August 20, ?002. Recommended: fixed rate. Loan I~ee: Minimum fee of $200 but not to exceed 1._5% of the total loan project. Paid by applicant to the F;UA within five working days after City Council approval of CiMI~.F loan. Not7-relundahlc. LoaI1 lee may be incorporated into project costs. LDA retains the right to reduce or waive loan lee or portion of loan fee. Recommended: Minimum fee of $200 or not to exceed 1.~% of GMEF Ioan ($3,000), due and payable not later than September 3, 2002. Prepayment Policy: No penalty for prepayment. Uel'eI-ral of Payments: 1. Approval of the F.DA membership by majority vote. 2. Extend the balloon if unable to rc~nance, veriticatiorl letter born two lending institutions subject to Board approval. Late Payment Policy: Failure to pay principal or interest when due may resrllt in the loan being immediately called. Interest limitation on guaranteed loans: Not applicable. Asstunability of loan: None. I3usincss equity requirements Subject to type of loan; E3oard of Directors will determine case by case, analysis tltider normal lending guidelines. 4 • EDA Agenda - $/20/02 Collateral: Ncrsonal and/or corporate guarantees (requires unlimited personal guarantees) as per the GMI/I~ attorney. Non-performance: An approved CiMEF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of L;DA approval. August 20, 2UU2 El)A approval -loan becomes null and void February 20, 2002. Non-pcrfoa•mance extension: Not applicable. Legal 1,'ees: Responsibility of the CiMN;F applicant. S. Kecommcndation; Recommendation is to review this information prior to the H:DA meeting for discussion and potential questions. Consideration to approve or deny GMH;1~ Loan No. 022 is the next agenda item. C. Su ortin Data: I'rclimin~:-ry GMI~r application, job and wage-level goals, TCF' letter, and preliminary elevation sketches. _5 d ~ Inc 12~ 18f'h1 CITY OF MONTTC~LLO P.c%~ GOALS C]F X3U,SINESS R~f;Cl,,tvlNC ASSZS"X'ANCE F,XXSTXNCx J(7BS Phase indicate ~attnaber o~ current employees at each level and laadicate tl~e corresponduab henc:tit level. "l~hcs~•johs you expect to retain with relc.~cation. ,lob Creation Hourly VWa~c Hourl Value Level n~ ~~oluntarv I3enelits S Pull-time Fart-time (~xcl.l7c~ae!'its) Less tb.an X7.00 X7,00 to $7.99 $S_00 to $9,99 1 $10.00 to $11.99 ~~•~4 ~~ ~ $1?.tJO tq $13.99 ~3.0~{ ~3 $I~1.OO is $J 5.99 ~'-1 . ~3 1 ~ ~ $1 G.UO to $17.99 '~ K~ ~`~ l~ ~ $1$,OO~to X19.99 ~ 3.87 1 ~7 ~ $20.OQ to $21.99 ~ 6 ~ 03 $22.00 and hibhcr ~ 5. sa ~l'-l • .~ '©c. 1?~ 1BPM CITY OP MoMTICEI_LO p.3~~ ' G4A1`,S OF ErISXNG55 RECE;(~~NG ASSISTANCE ' IYE'~V .7dS3S Picric indicake t7utn6ct al' additional ea~.z~loyees at each level and izadicate the cc7rrespanclin~ 17e~~zftt level. N~xmbet' of ne~.~ jc)l.~g cxeated over the first t~uo years c~P relgcation, 1n1~ C~re~.tion Hnur! Wa^e Hc~url 'Valt~c X,evcl of Vr~luntarv Scz,G'iits S Full-tztxa.e Part-tune (E~cl~ hetiefits) Less than $7.00 X7.00 to $7.99 ____,_ ~S.oO t~ $9.99 ~~ ~ $]0.00ta~11.99 ~~~~`l 3 $1?.00 to $13.99 ~ 3~Q`1 ~' ~ 14.00 to $15.99 '~ ~ ~ 23 y ~ $16.00 tc~ X17.99 ~ ~'~~ ~ ~ 18.00 to $19.99 ~ 3.8`I ~ _ $?0.00 to ~~.1.99 ~6.D3 ` ~ ~-50 X22.00 az7d hi~;hcr i3 0 NATIONAL • August 7, 2002 Housing and Redevelopment Authority City of Monticello 505 Walnut Street Monticello, MN 55362 Re: "Cerrancc & Mary Tomann Family Limited Partnership To whorn it may concern: C~ TCF National Clank is processing an application for constr-rtction and permanent mortgage financing for the above referenced partnership. This application is not acceptable withortt the support of the TT'F agreement. Sincerely, Kurt A. Schrupp Senior Vice President C: 801 Mnitclilr,i°rr Avr~;uui: MiNNr•,nroi.is, NiN 55402 Member t'i)IC ~ ~~~oe~ AUG -9 2002 ~`-~ IIUAL IIOUSIN~ LENDER Name of Easiness: ~~ _UltraMachuung (<OI'p01'atI0I1 Federal I D No. ~ I -097033 A(I(h"ess City 22~ I 0 FI ighway» Hamel, NIN Zip:57340 Business contact pcrson:_Dick Salonek Fax No: (763) ~F78-6483 Type of Business: Phone #: (763) 47&-6609 e-mail address:_dicksalollek(cr~,ultl•amc.com Sole Proprietor • Principal(s) Address Partnership ~X~Corporation %Ownership Soci~ll Security # II. Nature ot'Loan Request Alrlount of loan request $2~O,UQO Total cost oFproject $_4,36p,180_ _New Business XBusiness Expansion ~90 # of existirr; jobs 30 # of jvbs ~recrted _90 # of jvbs retrrirred (tlrrrt woulr! be lost -vitlrorrt projectfrnanci~r;) _1$.2?_ Average startin~~ waL e Briefdescriptionoffhe business: UlLlC is a contr•ac•tor• firhriccrtvr of ~mctcrl parts used in the mecficcr! crpJ)liccrtions lnclars[ry crs tivell cfs air•c/•crft crppliccrtions'. !ts opcrcrtions rftili~e milling, tul•ning, painting and other fah/•ication processes frse~c! in thc~ mctcrl pr-aclucts in~hrstfy. Fofrnclecl in 1968, the company hcfs ~~jrown tv series of over 510, 000, (JOU crnnfrcrl/y. Briefdescription of the project for which funding is requested: This prgjcct fnvnlves they construction of~cr 60,000 syfrcrrc~ fi)ot mcrnufcfc•tu/•ing fuc•ility in the ~~lontic•c~llo lncltr.t'triul Park on crpproximutely 10-crc•/•c~s. The estimatc~cl cost.fr)r this pa/•tivn of the prgject i.5~ ,53,3<0, 000 incluclin~~site C1CCJllI.S'1t1Un, .5'ltL' C(L'VeiOpn4erlt(fYIC/ ImprOVLment, COn.S't/'21C'ltUn, crncl soft costs'. In crclclitinn thc~ co/rrparty )Dill hc~ purchasing crpprorimately 5!, 00(J, 000 of ~netiv pr-oduc•tiun eyuiprnc~rrt. Thi.S' c~(/t[iprtfc~nt will c'ur~fhr•is'c~ stunclcfrcl C'NC' millin;, tfrrnin~r, and mcrchinin,~rCenteY".5'. Pcrge T-vo III. Project Ii inancing Specify what kind of financing gap exists (inadequate eq~lity, inadequate private lender financing, insufficient collateral) and explain In detail the need to apply for financial assistance tllr()Llgh the Busnless f_, ()all f CC)granl. (l3Lf • At1G-14-2002 03:16PM FROM-FIRST NAT. BANK HASSAN 1J_IID.t:.- Ine. ReYlew Revlaw RtiwOw JW1t: 73, xQr12 ~. 2 $PD. 90 .Sell. ~ statomgnt In Thousands a 1989 2oao 2go1 AsSErs cmm~,an slxea Gpsd 91 20 ~. 116 , 21 29S 4,4 ~Aer-0unrs Recelrabin 1.307 30.i ~ 1,bq$ , 29 9 1.711 26-D salac rar< Racel~aaw o as ~ • 33 a.s 2x o,a ~ ~ Raw Matertele tiq 'J,7 ~ 183 2,s z5z 3.6 W ork M PrCCre:15 658 14.6 ~ 789 • ~~ 15.7 1.087 16.5 Flntshea Qaads 0 Q.Q ! 116 ,. ' Z1 2D 0,9 Tdrallrnenwrv 828 16.21 7,050 ,19.7 t,95a Zp,e Tohl Gurrerlt Ass4rs 2370 60.0 2.6x7 '• 90.6 3.a85 57,4 pue from Rolalad C.ortroaNes o 0.a 5 • . Q.1 tb o.2 Duo Irom OIfiC9r5 50 1.1 49 0.6 21 0,3 ~~ 31 1.1 • ' 61 ~ O.B• b1 0.8 9u1101nna 759 1B.7 I 669 15~, 067 14.s rrnpp EOUiprnenl 4.635 101,9 6,10s • 91~ ~ 9.898 88.5 O(flt:0 FulniWle and Equlament 380 6.a ~ . at5 • 7.4 aT1 7-1 Vshides i9 O.A~ ~ 48 ~ 0.8~ 43 0.7 Gross Fixeq Aeetsts 5.867 126,9' BSC1 • 175.x' 7,356 111.9 Accumulal8a 0epreclatlon h1 C3,6001 (83.51 • (9.8171. 15.61, 14.36t1f1 (89.51 Not Fred Assam 2,gB7 45,4 2.684 ~ -46.7 ( 7.87fl 45.1 Arapmlb Expenses -Non current 74 D.0 ,' • 44 • 0.8 ~ 89 1.4 Advances 1 o,a , . • 1 . 0.0 i a a_n Ftel2t YaorTax Oeoosk 1r1o z,x 82 t.5~ 84 1,4 Cash 5ulrander Value Llfe lns, a 0,0 . 1d . 0.2 79 t7.2 rDTALAS6ETti 4.550 100.0 ~ .5.610 4ao_n• t+.6Sn 7p7A LIA81UT1ES Cnmmon Shed PorablD • Banks 24S S.a, S87 10.8 t1 0_P t wgrllan wnq Term nett a71 taw' Est . 11.8 603 eZ Trade Aoeounts pavaole 98S 8.0 I I 459, . . 7.8 705 12,1 Accrued WOpiS/571~1ES 252 5.5) 241 a,9 298 4,5 Accrued Prvlit Sharirm Cantri6 t5tt 3.3 123 ?.~ 221 3.4 Accrued Int7r0st 8 o.a ' 1aa Z~ 3 as am,,.d Dwkiends se 1~ .. 3a ~ o.c s6 to Other Accruals 96 0.9 a a.~ 1o a.2 TawlAaavals Sq4 11.1 549 •as• 596 aA C.ilslanmr Deoa9lts Q 0.0 . ~ .: 2 ~ ' 0.01 15 02 Tamil Current LJedlltrfas 'Y.6tia 9A.ti ~ 3.R96 99..6 . •~ 2009 30.5 LonoTvrnlAa6t T76 1T,1 617, 14.6 1,291 19.0 petgrrad Inmme 1.689 37.1 1.680 .30.7 1,981 30.1 Towel1Ja611hles 4.048 89.0 4,74a e4,e; 6.aA'1 7ta.5 Common Stock • CIBBtI A 3 0,1 ~ ~ '3' tl_7• 9 OA Cwrlmon 5uxk - CI006 B i 0,2 ; ' 7 , 0.1 T 0.1 Addidorwl P7Iq•Irt COplgl 31 0.7 91 O.A 31 0.6 ReldlnDtl Ellrnings ail tat ~ . 825 .-1c,7 1,90e t9,e 7orsl Net W qAh SOZ 11.0 , . .866 15,4 7.349 20.5 TOTAL LW81LIT85 $ NFxT WORT1i a.SSp 7at1.A ~ 6.670 .1n0.6! 6,580 100.0 • +763-426-4601 T-805 P.002 F-520 O7:aoP cs+1LfJ7 nrwrw• r•apai AUC-14-2002 03:16P1r1 FROIA-FIRST NAT. BANK HASSAN +763-428-4fi01 T-805 P.0~3/008 F-520 U.NLG., Ins Ravlew 17aviaw Ravlew June 19.20D2 ~ 2 Sec. ~ ~~• ~ Statarnertt in Thousand= 5 1999 2a0o 2001 INGOAAE 5TATEME-hIT Common Shad &alec#1 i,4S7 100.0 . 9r470~ 70D~' ~ 71.775 100.0 iCast of Goads Sall !~7 G,3A4 75_q ! 7.292 77A 8.050 76.9 ~Gro6sProflt L113 25-0,. 2.1T6 73.0 2.725 29.1 9eNn0. General a Admin. F~co. 7Qr 9.1 ~ T59 6.8 943 8.D ONlears' Salarlee 178 21 , 193 ; _ 20 ~ 1 B3 1.8 L.9aderF.er1[ FarAen9e 71 D.1 ' 13 D.1 15 0.1 Commtaslans 59 0.7 , ss a.7. e7 D.e paoreciarion 24 q.3' , ~ D.3, 34 0.3 Operednp Exognaes 1Ag1 1Z5. 1.090 17:5 1.252 10,fl Cperatlna Proflt 1 A71 127 ~ 7.086 •11.5 7,471 12.5 Interest ~nWrrle ~ 0,4 i • qA' 3 p.0 Gsln on 5816 Df users 4 qA ; 93 6;# 5 0.0 QiOior Income D D,0 I 3 ' DA • 0 O,D TOrot Orper InCDRIa S q.1 ~, i5 0,6 8 tl,1 Intorast Esaerwe 173 1.3 I' 269 3.1 299 a.5 OtherF~merme 1 0.q' 0 0.0 0 qA Defrrrpd Ccmaensotlon 1.689 20.0 ~ 0 0.p 0 q.tl Tel Other F~rtses 1.803 21.3 ~. , 269• •3.1 298 2~ Proftt Before Tat (7261 16.61 644 • g9 1,760 10.0 PrpIR 6atOra ErClrAord. Items (1781 le.B1 844 8.9 1.180 70.D NfaT INCC11N6 r71i1 rY.81 .:L44.. .B.ti 1.166 10A i~l;CQly. OF NET WORTM Common sized eealnnlrw Net Wartrt t.eso 9ss.s ~ ~ 3os sa.a bee s4.s Glances in Ral~ttln4d 1;aminas: rwerrw fLvs31 (•7291 fT44~e1 ~ 644 87.5 1,76D 87S Civldand6 S22 123.9 i • f60• 35.4 ea7 51.7 EndlnA Tangy Net Warfi 502 700.0 .886 •500.0, 1.948 700,0 ~~ ~~v 001rAA2 aaKarr~n~ Abp z AUG-14-1001 03:16Pf~ FR01~-FIRST NAT. 6ANK HASSAN +T63-418-46x1 T-8~5 P.004/SOB F-5Z~ ~I.>1II.G..Ina RaVlttw FiovlOW Rtaulaw Juno 13.20x2 CCL 2 Sap. 90 SCp. 29 sralamanc Tn Thoueanda S it~9H z0p0 2p01 Ilahts COME STATEMENT: 1 .. .. s 6.457 '' H.470 1.773 Malvin 2,713 ~ 12.17E 2,723 pAratinsi ExOeraWB 1.041 ~ ~ 1,090 1.252 NPBT l12B) 944, 1.160 NPAT r)28) I ' E46' 7.'[tiG 6H BALAW(,f StitftsTi ~ Toni Calr/Onl A~tats 2 319 i '. 4.847 3.3E6 Net Fbwd Assetr 2067 ~ ~ 2.594: 1,ti70 T4~tA~a11; a,sEa ~ $.siol a®ao SnenTermOhlipadens 71B 1.248 Rai 7a~1 Conant LiabiQQes 1.593 2839. 4,aas Loup Tarm l]etx 776 917 1.147 Tctel Llobllhles I 4.046 :4.744, 5,247 W RATIOS: I . Sales Grawth '11.99% 1s-92% Grose AAarpln 2A..9H76 ~ ,?S-QO9i. X95% ~roflt IVlalt7ln Le.56%) ~ ' ~ 9,81 ,4 10.0196 (:ureontRatla . 7A6;, ~.~ ~-ti6 qulrJc Redo 0-84 p.79 i.a0 WptKinC Capital 735: Bat 1,376 Ape of (~celvablec ~ . • ~ ~ ~ flays Supply In Irnenoory '~ ~ ~ App of PavaweS 71 .71 32 ~17ai+tlTanaibla Nat Worth AAft :.. ,' $Ai I 3.80 t3caekeven 5alas- Cssh 83~is ::9.195; 7.977 ~i 7 FLL]W: Ines (L)acy) h Cash ~ . Cann From Sale: H,227 11.744 Cash Frnm Tred~ui 1.799'; 2701 NK Caen ptoer Opetedons ~ 678 ~ 7.84t CaaA Alter FlRinpln4 Coaw ' .' , ' 19 9~ i 939 107 L:i3h Alter pabl AmoAltaWn i (4 i Capital Expondriuree '. l5ae~; ra~ol . ~ L' OYA9p mA7,le aaya.Hit FCgO~ Al1G-14-2f70Z G3:1fiPf~ FRDIA-FIRST NAT. BANK HASSAN u,BA.c., lne. Ravlew Rw1ew Rwla~w June 19, 2002 Qct. a Sea. 30 Sea ~ 9alement In Tho.ts~nds ~ 1990 ~~ Z001 9 eerellfw R~dm: I . Grewlh ~ 1iaM.c 2a8s9i Pre~Tax Proflr Margin (6SB9L) I • .6.9191, 10.0296 Prnfle Hatpin (6.56961 ~ , • 6.91y6 10.0396 Redrm onAtLOW (ROA) (15.66911: 15.0491 17.61 Ratum on FAN lhaE1 (144.62711 ~.: 67.4tf9lt, 87.47°6 A93CI Tumrrier 1.66 ~ 1.89 ,.79 171/r~IIK 1n061[tOn: Cumsae Ra1{e 1AG i 1.37 '1.8s atitck Reno 0.8a I .: ' 0.76 • 1,00 Working Cap1181 7861. :663: 7.378 Worlclna caphaUAsseis 16_,5y., 10.759L` xg.69~: waking Caphtil Turnover 11.51 , ~' ~ 1S,7o~ 9.58 ReCeiraClO TYrnpver 6.0$ . ~ 5.77 8.88 Ape of Retelv9ble5 00 I • 93 53 IrwanrorvTurriw9r 7,89 6.94 8.65 GSV6 $up01y ~l1 i~1rGrllofV 46 . ' ~ 58 8$ Pavatsla Turnover 77.48 16;61 11.36 Arun of Parah105 21 ' 72, I 32 6;aYlty Porclllon: , I dwlerEoWM/AsseLS 11J73°.1 , 15,44511 20.b791 Credllor ECUIN/Assets 869791 • 8b,36°~, 76.5:B9L OpbtfTanal6lr Net Worth 9.08 1 5~aal 9.08 lead A~es911t.ana T®rtl1 Gab1 83.86'A, • 1~ i 1.% 91.fiC9i F1sed Assetsr'r~npl5te Nel Werth 411.7591 ~ 296.36% 1 220.16pl. PI9nt Tl:rnover 4.09 ' : 386 3.88 Rnur: , ~ retest Covarpaa t~'n 15,421 ' •' 392• 4.95 Pctn g Imare~ Cover.~e t1vPBT) •1A6 ~ 1.56 lntorast Covarwe (avYradnp Cash) Z..75 ~ 6.58 Prin 8, h1t0luat Covaraa~ lBC1 ,: ~ OJO, ..• 2.06 Suswlfoek Growth Rata Cn-9S9i)' : ~ . 72,5191 55.77°,6 erealravon Bak+s - ~n 6esls ' 6:189 Tan AG1ual Se63s/Btaakavan Sates ~ ~ ... • 1.0.1 1.48 6mle petense Interval (51 i ~ ~• ~ (19) 1 Bankl'uolcvRatlo:Zvalua 7_fi9~:• ..: .Z.S9 2.91 ~ t 1.29 weak: ~ 290 Sr<orrp • +763-4x6-4601 T-B05 P.~05/~~8 F-5Z0 ,~ os+.oa odr+yee trwr wr rww • AIJG-I4-ZOOZ 03:1fiP1r1 FROIA-FIRST NAT. BANK HA55AN +763-4Z8-4601 T-605 P.006/006 F-5Z0 RovIOW RevleW Rrvlew U.M.G, Ina Oct Z ~. ~ $~, ~ .lone 13. 20~ SraOment in TISWi6andS ~ 1eA8 200D 2001 S Trend 9t ' ' `77,5 •~ 11e 152.6 293 1 3fi0~ 17.4 •1JS42I 4.1 1,711 d-rw,mr .,~,_Recelvabl0 , D WA 33 (33.91 ~ Solos Tee Rar~Ira01e _ 170 ~ ~ . (411 168 i 54.8 262 Raw ntiomA6ls e50 16.5 ' 7e9 ~ 41.4 1.D67 warlr In procreae 0 'NIA 110 f~.11 ZD FinlsnYat3efad6 e~6 .2i.tf 1.050, 29.4 1,369 TpeallrneruoN 2,318 ?71,8 ?.:R61 ~ ia_1 y ~sG Ta1at GurrarK AWSali pu0 trorn Relrted Canwanla6 0 j 50I NfA (74.01 5 'i$ 220.0 f51~1 18 21 DuohomQlNcefs r ~ ' S1 . O.o 51' D.a 51 Land . 758 ~• •, 77.5 88t3 7.6 957 6ulkJlnp9 n,6361 10.1 5.105 1aS SA39 5h00 Eaulafnenr , ^!80 ;' ' 8.2 ' 1 416 ~ 13.5 471 DPtieo Fumlwfq ono EoulOment 45 O.If ' as • 0.0 as Vehicl9i Grace Rtud Awxs 5.6ti'T i 0 ~ 10,8 a 1 d S0'1• 017!; 45 1s.1 11.0 7,s3D ta~B51 Araumulated0e0~4anf•1 !3.60 1, , . . Not Plied Aa6e-s 2,467 , 29.D • a,6ea~ 14.s as7n ProOOtd ~oans~s • Non wnen< 16 ' i z1a.5 ' 0 0 as 102 01 (10D 69 4 AdvA110t16 p3splYaar7dx Depo9lt 1 100 ~ ~ , .. (18.0) 1 : 02! . 14,6 °'L t:oah 5utrind9rV-alas LI'Ta ~ O ~ , . NJA 10' 50.D 15 TOTAI. p9$QTS i.5S4 .~18 . . S,B10 17.6 6.580 IA91LrflfiS Trend Povnbk • Banks 245 ,143.7' 597 e6 1140.01 41 (7 4 B43 Pordan L.OnA Term D06E 471 •38.2 1 , Trade Asau+rrle PaVabla 963' ~ ~ 20.9. 4~ ~ 61.1 7g5 AICCTLJ6d W6ps6~SaleAOC 252 (?1.41 241: 22.8 298 pccn~ed PrOtl(Shadna t:An~b 1:ao ~ 1 ' • 2; Arcruad kit9r0i1 g S8 ~ .406.9 1 (x3.11 743 • 39' 197.91 100.0 3 68 Accrued Dlvldande 36 f7a~11 • '9 11.1 10 O1nOrAecnlala . Tatted Arerualt 504 I .. ~ &9 648 0.6 SDe , Cu®ewinr DepnriG D I N/A , ' ~ 9I 654.0 15 Total CDreent L1601Rtl06 1.S0S ~ 41.4 2566 NO.s1 2.009 LanO Term Dept 776 5.3 , . •817 53.1 151 Deferred Ir>cOmO 1.6613 a.0 1~eB 17.s 1,681 Tptal LIebIYdeB 4.046' 17~ 4.74- 'I tOS 5,2a7 Gorman StOCk • ClaSS A 3 i 7 ~ ' 0.L) 0.0 ~ 3 •. ' 7 ; 0.0 0 0 3 7 t'~mion Sttxk - t:toes t3 , ~ ~ . 31 A~ahlOrtal Paid-In Cealtal 31 ~ ' O.O a 78 s1 ' 086 O.O 50.5 1.906 Retained EarnY'eas net . Total Networet 503 74.5 886. ~,e 1,349 TOTAL 1:.tA91LJTt@A $ N6T WO RTH x.550: .?S T... 5.8101 17.5 6.69D • asaoo aenam ea,r-rn w'o°n AUG-14-20GZ 03:17Pf~1 FROIrrFIRST NAT. BANK HA55AN +763-428-4fi01 T-131]5 P.!)07/OU8 F-52G U.M.G.Inrr f2evlew tievtnw Revlaw Juno t3, 900rR Ocl 2 Sep- 30 $e+0. 29 5laletllerrt In Tnousahtle fl 1066 2000 2801 M~ STATEMEIYi' Tfgnd 81 of Goods 5ald a•1 Gross Profit sotuna. Oonq'al s Admh+. 6m. Oftk6r~ 9aprlOs 6aSSwlRenl F~toran6® tommiseiarC D90reciadon 00®ratln0 F.aGOnsea Oocratina ~rn Inroresl lnmme Galn an Sale of AI~M4 t3tt+tar lnoomta Toml Other IncaMa Ctncr fsxoot+se Defert94 Companeatlan 7arml Other ~~ Profit BaFare TaR Profit Bararv t~vaotd_ Itema NfcT INCOME 6.467 12.0 • 9;4~b 2i.s 17.773 .~ 8,344 ~ ~ ' 14;5, 7.2921 94.1 aJ]50 Z1t3j. . '~9.t~ .2,178! Z5,0 2.723 7671•. 1,7'.. - 7881 t9.7 447 179 ~ T.N ` • • t93, • 0,0 1A9 12 j ~ .. 83 • , 19 16,4 1S 30 75.6 87: 0,0 ~ 24 ~ "?A.8 2t3' 17,2 ~ 1.441 ~ 4.7 1A90: 1a.e 1,~2 1A72i ' ~'1.5'. ° 1.g88'~ 35.2 1.47"1 i t i • ~,a; ~ 4 r25.a1 3 4I ~ 650.0 ~ 36 186.81 5 q . WA , ; . ~ (100.01 0 r 8 , 800,0. 46 f6221 8 113 ~ 155.8 ' $89 3,5 ?8® 1' (100.0 ~ ~ 0 N/A ~ 1,9116' t11]O.q~ '. ~• ~ WA 0 1.ea3 ? ° 'rti4.o1 .288 9.s xea (7~} ~ ~79~~ 944 39.8 1.190 i (726) ~ ' 218.3 644 99.8 1,180 17sr1 ~. . ~ 21P.3 ..; . ~ 8da dB_B 1.160 OF NETwORTti TrenO InnlnpNalWaRh t~50 172.81 ~~ . '502 72,5 886 es In Retelned F.~-minps: (7281 •• , .. 216 3 . • 8'MM1 9aa 1.11!0 Inmm9 (!.coal 622.. . 81 .f2x x611 48.2 sA7 Cash pNl4ends . ~1np T0~1 Nel Worth ~ .7,23 Bbt3' $8.8 t~49 • q5v~ 09A9A2 Oa4vNN POiOC ALlG-14-2G02 03:1TPf~ FRf]~i-FIRST NAT. BANIt HASSAN Revlew Reolnw u.w.c..lnt: Soo. 3G sev. 39 June s~ 2002 2oGO 2ad~ Seatement In T-wusanda S Cash Flaw ~~ ,~'17.T19~ sales ~e N Current Recelvao126 (zasl ~ isat g,2z7 ' 11,T0~. Cash rran- 5a10s Coss of Gpad6 Sold (Less Daar•1 (7.2921 • • ' (g,.OSO1 ~ (906(' ChsnW In Invdntot(es (~21 • ~ , ,~68' Char-ae In A~cotutGl pavoWe ~ ~prnducdon Criss (7.1set ' f0acrsl 1.7~ 31701' Cpl}{ FROIW 7RApING ,: sohlrtp. t3en^rel & Jldenln- rya (798t feasl• fig) (3751. p~erOpatadnA Q~~ea , c ~ .p: Chenae In ~redstas (E41 . 154• cnanae In awed Eiwansas a is Chp In oth. Corr.',~eISlLlao. Cpah Opecat(nA Costs _ (1.11' ~ ~ 11.~7t r~sN OpRRA6'l4~ ~+ , 1.C6D OlMt0r Income fFx0aneal 4$ 8 n ~ Cheops In Other lJ®tfNNhles 0 C~ Income T~ Exatnsa a ,0 C(lanae In Do(IKrmd tncame Taxos l~l 11, Ghanpa in InrAtnO Teaes Pavabk ~..~. Tea Patel 8 other tnc (Exal iZ all N6T COSH AFTER OPERATIQNS 678 • • 1.861 Olvldands Dr Owners Wldtdrdws3lB (1601 ~ 16871 (2S1 99. . Charwo In plvldands PevehlA (3891 12901 lnteteat Ex09M19e 1yp ' ' ~• ~ M401 Cluvipa In Intetest ~~ f6ep1 .• M:1•Q31 Cash FtnandnA t.asts CASH AFt'6R FlNPNCING CDSTS 18 ~ ~ 85e Current pcNon land 7atm Dahl t~71t '' •' '1Bfi11 cases AF'I'6A QBA1' ptMpp,T1711TION fd~AaA ' 207 Cadrd ~~~ 18461 faxul 0 .0 Ct+anpe In l anA Tefrn irnealmenls f~1 ' (~1 Cnaroo m IM1-pnPro~f-ssels CarJt UpeA fat' PI6nUlnvest (5661 (4701 FINANCING SYRPW ~ra~w f1~191 , (fit Cttanp0 to Short Tenn pept ~, (5971. DS7 ' 1 5s2 C.Ftange in LonA 71rtn Dehi , : 0 Is (',penpa In Cortlrlbuted ~~ p 0 pth. Cltaa In Remtned Eamkws ~ Total feslornal FirtarrJnp ata ,.a1a ' FINANCMG SURPI..US IREOIIIfiE9AEW'Y'- . ~ 7 + Tp7AL EXTE~RNAI_ FINANCING ~ 7 7 26 .... '...177 Crianae In Cash a Eaul~pl0nts ~J ~' ~:xq mns~x t~rHlq +T63-428-4601 Par.+ T-8~5 P.0~8/00A F-520 EDA Agenda - 8/20/02 • • 5. Public Hearin -Consideration to a rove or den GMEF No. 022 a business subsid for UMC. A. Reference and Back round: Alter review and discussion of the preliminary application born UMC, the lDA Chair should open the public hearing. I't1I3LIC HEARING The business subsidy notice appeared in the local newspaper August 1 ~, 2002, for compliance of the Minnesota Statutes 2000, 116.1.994: Before granting a business subsidy that exceeds $100,000 for a local gove--nment grantor, t17e grantor must provide public notice and a hearing on the subsidy. Please open tl7e public hearing for con7l71er7ts. 'hhe 1-:DA is asked to consider approval or denial ol'the request Ior a $200,000 GMI~.H' IoaI7. Tl7e lender, T('F, has been requested to provide a copy of the Bank's commitment letter and a letter stating UMC is an existing credit worthy business. 1~ first, the L:l)A needs to determine if this GMEF loan application from l_1MC will encourage economic development. Secondly, the EDA n7ust determine it t17c preliminary • real property acquisition and development loan application con7plies with the EDA Business Subsidy Criteria - GMI~:F Guidelines. Lastly, the 1-:DA must detern7i17e the amount, terms, and I:ec ol`the loan for approval. 'hhe City Council will consider ratification of the EDA's action for compliance of the EDA-GMEF Business Subsidy Criteria on August 26, 200?, II`approvecl, the GMi;.h' will be disbursed at the closing date yet to be determined. CLOSE Pl.1BL(C HI~;ARII~IG Prior to closing the public hearing, please publicly identify and summarize the terms of the business subsidy Ior approval to t1MC by the Authority: B. Alternative Action A motion to approve GMEF Loan No. 022 for l1MC' in the amount of $200,000 Wlth tel"177 and COlldltlol7s as reconlmel7ded at the 171eet117g. Collateral, guarantees, C7 EDA Agenda - S/20/U2 and other condition requirements to be determined and prepared by the GMEI~ attorney. The GMEI~~ loan approval subject to Lender commitment, credit worthiness letter and Council ratification oI~ EDA action. Z. A motio~l to deny GMEr C,oan No. 022 for [JMC. ;. A motion to table any action. C. Recommendation: Recommendation is for Alternative No. 1 with terms acid conditions as recommended at the meeting. Approval subject to lender commitment, credit worthiness letter and Council ratification ol'thc EDA action. The suggested amount of $200,000 was recon~mendcd by the Prospect "Team after a visit to LING in the spring. D. Su~portin~Data: Public t Tearing Notice. • • Winners of the bike, blade and board stunt competitions are (f left) Mitch Torrell (blade), Jake Peterson (bike) and Jason artz (board). NOTICE OF PUBLIC HEARING ECONOMIC DEVELOPMENT AUTHORITY IN AND FOp THE CITY OF MONTICELLO COUNTY OF WRIGHT STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the Economic Development Authority in and for the City of Monticello, Minnesota, will hold a public hearing on Tuesday, Aug., 20, 2002, at approximately 4:00 p.m., at the City Hall, 505 Walnut Street, Academy Room, Monticello, Minnesota, regarding a proposed business subsidy tv be grant- ed by the Economic Development Authority to the Ultra Machiningg Company (the "Recipient") under Business Minnesota Statutes, Sections 116J993 through 116J.994. The proposed subsidy involves a below interest loan to assist with real estate development as part of the development of a manufacturing facility by the Recipient in the City of Monticello. Proposed amount of the subsidy is $20p,D00. Information about the proposed business subsidy is available for inspection at City Hall during regular business hours. All interested persons may appear at the hearing and present their views oral- ly or in writing. BY ORDER OF THE ECONOMIC DEVELOPMENT AUTHORITY -0Ilie Koropchak, Executive Director (August 15, 2002) PUBLIC NOTICE Pursuant to the provisions of Minnesota Statutes 471.705, a special meeting of the Monticello Economic Development Authority is hereby scheduled for the fol- Iowing time, date, and place; TIME: 4:00 P.M, DATE: Tuesday, August 20, 2002 PLACE: Academy Room, Monticello Community Room, 505 Walnut Street SUBJECT: Consideration to review GMEF Loan Application from UMG. Public hearing and consideration to approve GMEF Loan No. 1-22, a business sub- sidy. (August 15, 2002) NOTICE OF PUBLIC HEARING CITY OF MONTICELLO -COUNTY OF WRIGHT STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the City of Monticello will hold a public hear- ing on Monday, Aug. 26, 2002 at approximately 7:00 p.m., at the Monticello Government Center, 505 Walnut Street, Mississippi Room Council Chambers, Monticello, MN 55362, to consider making an application ter funding from the State of Minnesota under the Small Cities Economic Development Program for an eco- nomic development project. The program and its requirements will be explained. Gomments and questions will be welcomed. Under consideration will be a pro- posal to assist Ultra Machining Company with its proposed location and expansion project. The state's program is designed to provide assistance to private businesses in getting started or in expanding, while benefitting low and moderate-income per- sons, For information, call Ollie Koropchak, Economic Development Coordinator at (763) 295-2711. -Rick Wolfsteller, City Administrator (Aug. 15, 22) PUBLIC NOTICE Pursuant to the provisions of Minnesota Statutes 471.705, a special meeting of the Monticello Joint Fire Board is hereby scheduled for the following time, date; and place: ' TIME:'? p.m. DATE: Tuesday, August 20, 2002 PLACE: Fire Hall SUBJECT: Regular Meeting Divots Bar 8 ~ 5700 Jason A Albertvill 7ss-as7-~ At the Cedar Creek Golf Cou Monday: Kids Night Kids menu item FREE with every a Tuesday: Senior Night $1 off any entree for Seniors Wed.-Fti.: Hsppy Hour 3--6 p.m. $I off taps and well drinks Saturday: AIMYou-CBn-Eat Fish Fry _ $~.g~ - -- - - - ~ 'Mont/ce/% Shopper Coupon - - - Any menu off or tap b~ With coupon. One coupon per customer per d~ at pivots Bar & Grill, Albertville.. Good through Bring Home the Get quick cash witri the classifiE Sell your unwanted car, property and house more ~uicky and affordably with the clas Just call us today to place your ad and get read' to start counting your cash. Monticellc_~ ~~~~, Inc. 763-295-3131 BACON F.DA Agenda - 8/20/02 • • 6. I31ock 35 Im rovements - F,UA Prelimina sketches and cost estimates and Chi (ryouncil action of Au ust 12 2002. A. Reference and back round: At the Council meeting of August 12, 200?, the Cow~cil held a public hearing and was asked to award the work Ior improvements to the Block 35 parking lot. ~l'he Public Works has been involved with the property owners and the IJDA relative to potential improvements to Block ~5 alley. The agreement between the property owners and 1/DA was to delay improvements to the alley until 200 i for two reasons: ()ne, wait until completion of County Road 75 (Broadway) and two, business owners agreed to a joint snow plowing arrangement for private plowing and to work with the City for the alley plowing. 'this to assess the drainage issue and ice build-up. At the Council public hearing, a number of business owners and the Chamber encouraged the delay of the improvements to E31ock i5 parking lot due to the construction along Broadway. The Council delayed the work and authorized patching be done this year. • • /f the EDA r•enzains interes'teca to proceed with irrrprove~nents to t{2e /3lnck 3~ ~illcy, its tune to dcvclo/~ cz plan to crc'com/dish the ~rocrl ti~~or•kin~r ~~ith the property otii~ner°.5', city errgrrzeer°, crn~l city /~lunner. A plan inclrrdin~T desi~m, scope of ~pruject, cost estir~~crtes, f2-rnclir?~T.S'OLlrCe.S', and canstr•rrction c•crmrr~enccmc:nt date. Attached arc the previous cost estimates as presented by Steve Grittman, city planner consultant. In addition to the clipboard sketches, I've asked Steve to prepare a sketch of the last scenario with parking to the south of the alley. Attached arc l~~DA minutes of October 17, 2001. Note estimated costs I`or drain~lge improvement. fL J MINUTES MONTICELLO ECC)NOMIC DEVELOPMENT AUTHURITI' Wednesda}~, October .I 7, 2001 - =t:00 p.rn. City Hall - a05 Walnut Street -Academe Room Nlemhers Present: Members Absent: Staff Present: Guests: 1. C: al l to order. Chair Bill Demeules. Assistant Treasurer Ken Malts. Clint Herbst, Ron Hoglund and Darrin Lahr. Ro~~er Carlson and Barb Schwientek, Executive Director Ollie Koropchak, Treasurer Rick Wolfsteller and Recorder Lori Kraemer. DAT Chair Pam Campbell Block 3~ Business Owners Karen Snyder and Nancy McCarty Chair Dr:mlteles called the meeting to order at 4 PM. 2. Consideration to a .-rove the Au~~ust 21. ?001 EDA minutes. A MOTION WAS MADE BY RON HOGLAND TO APPROVE THE MINUTES OF TFIE AUGUST ? 1, ?001 EDA MEETING. GLINT HERBST SECONDED THE MOTION. Motion carried Ltnanimously. 3. Consideration of addinu or removing agenda items. Ollie Koropchak added discussion regarding amending the EDA guidelines as well as an update regardin;~ the Wri~~ht County Partnership. 4. Consideration of an a date for revitalization of Block 3~. Ollie Koropchak, Executive Director, provided the staff report advising the status of the alley catch basin and alley easement, advising that the City had been unable to find any record of recorded alley easements. 7'he only reference found was a letter dated January 1978. Legal descriptions don"t identify easements; however, individual abstracts would note recorded easements. lt's been a general understanding between the property owners and the city that this area was recorded as an easement for the purpose of a public alley to be maintained b}- the city. The Public Works was not interested in removing snow from private property. The alley and public parkin; lot will be plowed simultaneously and as • • EDA Minutes - 10/17/01 quickly as possible. John Simola- Puhlic Worla Director- advised }LOropchak that the Cit}~ should obtain written easel~~ents from the propert}~ owners. b) Estimated costs to coI-rect alle}~ drainage. Based on the drainage concerns raised by the property owners at tl7e last EDf1 I»eetin~~, KoI-opchak rcgucsicd the Public U~orks Department take a look at the area. Public U~orks Uircctor .lohn Simola reported that there is one catch basin located to the easterly side of Block _ij alley and the depth of the catch basin is approximately 2.b~ feet which perhaps indicates the catch basin freezes creating the lack of drainage. The storm sewer- line on U~alnut Screet is about 1 ~/l 6 feet deep, Upon request, Simola prepared a cost estimate to correct the problel7~: Remove and replace the concrete alley at a lower elevation to improve drainage (drop 6 to S inches), and ren~ovc the existing catch basin and install two catch basins at a lower level (drop to S to 7 feet). Sill~ola's estimate is $4~,8 ] 7 which does not include en~~ineerin~ costs nol~ the cost to slope the private surface to ra~atch the ne« alley elevation. Karen Snyder, business owner, stated that drainage may not be a problem if the alloy w'as plowed in a timely manner and asked if they could try that first before putiin~~ in ne~v catch basins. r • c) keview cost estimates pre~~iously provided h}- Planner Grittmarl At the -iuly meeting, Planner Grittman presented t~vo cost estimates for parking and trash improvements. One estimate with no concrete sidewalk and curb ($j0-000) and another estimate ~~~ith concrete sideti~~all: and curb ($7.000). The ED.q offered financial assistance in the ar~~ount of 7~% to l 00% of the cost to develop. At the August meetin;~, a third concept to provide two Lows of parking divided by the alley to accommodate the request of tl~e property owners for convenient, back-dool- parking was aW~reed upon between the ETaA and property owners. Grittman was to I•eview this with Public Works and they did discuss this briefly at site review. i i Herbst added t17at I7~aybe for this year the owners should try plowinr tlae alley al~d see if chat alleviates the draina~~e problem. Koropchak nosed that Simola was not interested in starting to clear snow from private parkin<~ areas, even though the City owns a poI•tion Of t17e alley. and the business owners are stating they are willing to take care of the plowing as lon;~ as the City removes the snov~- from the parking lot which is City owned. Karen Snyder stated that she did get some bids already and will talk to the other busil~ess O\\ net-S. Ken Maus stated possibly asking Simola to trade off the hours of plowing for hauling. • EDA Minutes - l0/17/01 ~._..~.. Wolfstcller noted that there is probably more hours involved itZ hauling the snow than in • plowin~,t. FIerbst stated possibly the snow could be stored in the empty lot For this year and when it's full. the City could come in and haul it out. When its full, it could also be piled in the City's parking loi and hauled away. There was also a consensus that the businesses did not want the alley torn up at the sane time that Broadway w'as torn up. They would prefer to handle the snow plowing this year. Snyder also commented that in talking to laer renters they were not interested in hauling the u~arba47e any ftXrther out to a dtimpster as they would not want to leave the business unattended, although it was stated that most businesses do this at the end of business hours. Ron Hoglund stated that perhaps .lohn Simola should be contacted for further options. Rick Wolfsteller added that perhaps the businesses could contract a private party to plow and haul, and the}' bill the City for the percentage of what is City owned. At this time they will pile the snow in the empty lot as they have been doing in the past. until it is sold. It was the consensus of the aneinbers and the business owners present to take no action on the parking/trash improvements until 20D2 when the Broadway project is completed. Karen Snyder will contact the other business otivners and discuss contractin~~T a private party to plow and remove snow from the private property and alley. billin<~ the City for a portion of the cost. 5. Consideration of Executive Dia'ector~s Re ort. Koropchak provided the executive director's report, addin~~ that Redwing Foods is possibly leasing space in Big bake. All EDA loans are current. b. Other Business Amcndin<J tl~e EDA Guidelines Koropchak provided a copy and the current guidelines noting that the .EDA had talked previously about extending the boundaries and adding langua~c such as "upon review. case by case_ unique situation" etc.. stating the EDA could consider adding additional blocks. Per the EDA attorney, tlvs can be done. Lahr stated that they nay not want to change the guidelines at this tune but to wait until someone approaches the EDA. It was tl~e consensus to stay with the current guidelines, but encourage anyone to present a plan • EDA Agenda - 8/20/02 • • • • 7, Executive Director's Report: a) GMh:h' No. 020 Double Bull Archery -Attached is the completed approval form for GMh;h' Loan No. 020 Ior Double Bull Archery and a letter from their attorney. The EDA. approved the loan on June 18, 2002, and on June 19, 2002, the proposed owners notified the Office of` the EDA that they had withdrawn from purchase of the Lake Tool building. I need to check on status of EDA loan and 'I'IF District No. 1-2 i . b) EDA Invoice - Copy of invoice f'or Blue Chip Development -Vector Tool (draft of docurncnt). c) GMEF No. 021 - i:?1)A loan fee from Tapper's Inc. for approved $SS,000 machinery and equipment loan. Load doctunents arc prepared and reviewed by applicant. Closing anticipated for September. d) NICCh' Loan Criteria -This is the criteria. for the MC'Ch' dollars avaiiable through the Economic Development Partnership of Wright C'ormty. The ac~justablc and Iixed rate is expected to be over prime rate meaning the program is truly gulp financing and not used as an incentive. Loan fee is higher than charged by most lenders. c) Production Stamping -Les Wurm has been hesitant to apply for the EDA loan for construction. I-Ie has been informed of the need to have his construction ftnancing ire place prior to permit issuance. TIh' District No. 1->2 for Production Stamptng was approved by Council on August 12, 2002. Grading and footings will be in place this tall. fi) Working with two industries - A wet industry and a company who manufactures wind generation equipment. The latter one throtirgh U~fh;D and need to respond to their request for proposal by August 26. Also need to follow-up with Huot Manufacturing Company, St. Paul, the company visited by the Prospect Team in late June. g) State Grant -The State of Minnesota will be out on August 26 to monitor the city ledgers and documentation for the $_500,000 grant the city received and lent to Twirl City Die Castings. "I'hcy will also tour the facility. The effective close-out date was June 1, 2002. TCDC has beers requested to complete tl~.e job and wage Iortn for compliance. "I'hc City can request an extension Ior job creation based on a copy of Certificate of Occupancy issued by the City. h) Comp flan -City Council will review the amended Comp Plan for approval as rccornmcndcd by the Planning Conarnission on August 2G, 2002. The amended plan notes comments from the workshop among commissioners and the chamber. Planning Commission suggests moving forward to research acquisition of land for industrial development and/or interchange development. i) BIZh: visits -Need to line up visits. Last ones were Standard Iron and Electro I ndustrics. • C;DA Agenda - 8/20/112 .j) Meeting scheduled with Chuck Van f-iccl, Steve I leimbuch, Mayor Bclsaas, . Wolfstellcr, and myself relative to Midwest Graphic's building and proposed East 7 Street incubator comn~crcial/industrial project. a) SCEDG application - L,eruly Kirscht is preparing Phase I application for City Grant request to the State. The city will loan the requested $290,000 to LiM(' at a low interest rate. The Public Hearing associated with grant application is scheduled for Council, Aul;ust 2G, 2002. • • • • • APPROVAL OF GREATER MONTICELLO ENTERPRISE FUNDS SY ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONT[CELLO, MINNESOTA Preliminary Loan Application Approval. Loan terms negotiated and agreed upon between the developer, the lending institution, and the EDA Executive Director. Formal Laan Application and Financial Statement analyzed by the lending institution, BDS, Inc. or City staff. Building and Site Plan Preliminary and/or Final Review. Building Permit approval ar construction commitment Loan documents reviewed and/or prepared by the City Attorney. ~~ YES LETTER OF CREDIT WORTHINESS BY LENDER ASSOCIATED BANK MINNESOTA GE ECONOMIC D1VELOPMENT AUTHORITY APPROVAL OR DISAPPROVAL: • LOAN NUMBER: GMEF No. 020 LOAN APPROVED: JUNE 18, 2002. Y __ BORROWER: DOUBLE BULL ARCHERY 1400 FALCON AVE NO BOX 290 MONTICELLO, MN 55362 ADDRESS: DISAPPROVED: LOAN AMOUNT:_FIFTY THOUSAND DOLLARS AND NO CENTS ($50,000.00) REAL PROPERTY ACQUISITION RATE: 2.75 FIXED INTEREST RATE DATE: JUNE 18, 2002 LOAN TERMS ~ IN F FEE **OTHER (SECOND PAGE) A motion was made by EDA Commissioner KEN MAUS to (approve - ~i~'~ Greater Monticello Enterprise Funds in the amount of 50 000 FIFTY THOUSAND DOLLARS AND NO CENTS dollars and cents to developer this 18th day of JUNE 2002 Seconded by EDA Commissioner ROGER CARLSON YEA'S' KEN MAUS, ROGER BILL DEMEULES, GMEF disbursed EDA Treasurer YES by Check No. ~ITY COUNCIL MAY REVERSE AN EDA LOAN DECISION WITI-IIN TWENTY-ONE DAYS OF~A APPROVAL. TU CITY COUNCIL, June 24, 2002 AT COUNCIL ~o ~ ` ~ ~ CARLSON, NAYS: NONE. AND RON HOGLUND ABSENT: BARB SCHWIENTEK, CLINT HERBST, AND DARRIN LAHR. G1VIF,F Approval Page 2 ACCEPTANCE OF TERMS ~I (We) hereby acce t the terms stated above as a roved b the Economic Develo ment i P pp y p AL thorny in and for the City of Monticello. DATED: • • GMEF LQAN N0. 020 IS A REAI, FROPERTY ACQUISITION LOAN FULL_TIME JOB COALS: FIVE NEW JOBS IMMEDIATELY TO MONTICELLO 3 @ $10.00 to $11.99 w/o benefits 2 @ $12.00 to $13.99 w/o benefits CURRENTLY: 9 FULL TIME AND 1 ~ time. SEE ATTACHED. SECOND POSITION BEHIND LENDER ASSOCIATED BANK MINNESOTA. GMEF LEGAL FEES RESPONSIBILITY OF APPLICANT. COLLATERAL: PERSONAL/CORPORATE GUARANTEES (requires unlimited personal guarantees) OR PER THE EDA ATTORNEY. APPROVAL SUBJECT TO LENDER COMMITTMENT AND COPY OF PURCHASE AGREEMENT. LOAN BECOMES NULL AND VOID DECEMBER 18, 2002 IF FUNDS HAVE NQT BEEN DISBURSED. FUTURE LOCATION: 1347 DUNDAS CIRCLE, MONTICELLO, MN 55362 GMEF DOLLARS DISBURSED FROM SCERG (CLOSE OUT) GMEF BALANCES. LEGAL DESCRIPTION: LOT 1, BLOCK 1, OAKWOOD INDUSTRIAL PARK SECOND ADDITION • • Fl_C.ASC FtERIY 70: MCNY~ICELLO OFFICE 2G7 SOUTH WALNUT STREET F~. 4. CC7X 6Ci!! MONTIGELLC7. MN p536Zfl66~ PHdNE 0163) 29S~IQ7 FAX QB3) Z(i551 A6 SMITH, RAIJLSON, O'DONNELL ~ p-$$QCIATES, P.L.C. ATTORNEYS AT LAW GREGORY V. SMITH` GAKtY L_ PRIIVGI..L'' (194Q 1 S87) GERALp 5. PAUL90N" PATRICK M. Q'DONNELL'° MELANIE A. FLOFtES BARBARA J. SCHEABING LEGAL A61SIbTANT Tune 19, 2002 • • Crentlemon; Lake Tool, Tnc, 1347 I7undas Circle Monticello, MN 55362 RE: Proposed Sale to 1~auble Bull, LLC Ei.1S RrvER oPplcE JACK.50N SgIIARE BLDG. 400 JACKSL7N AYE. N.W. SUITE 103 EUf gIVER, MN 55.330 prldNE (763) 441-399A Please ba advised that bouble Bu11, LLC hereby notifies you of its intent to immedaately cease all efforts to purchase the Labe Tool Building. An inordinate amount of time and expense has been incurred to daft and we havrMn't bocn ably to consummate a purchaso agrCCmcnt. Srnvks and Kcith have becotnc increasinBlY uneasy about this transactions as mare and mare changes are requester by you and more information becarz-ea available regarding TlF deficiencies, title issues and rent back changes. We just received a preliminary' computation that the total TTF deficiency which would have to bt addressed st clasin$ would be $ZS,SOC plus interest- We bclicve yvu'rc your abi~ty to clear all encumbrances and mcct yrnrr financial obligations on closing regarding TIl~' deficiency, SSA payoff penalties and rem bacl~ credits is simply not going to be possible based an the purchase price set forth in the letter ofirnent. Ple:a.se consider this letter as a vlrithdrawal of any and all dra~ks or versions ar the purchase Agreement or Exhibits and please refund the $5,000 earnest mOneY to Double Bull, LLC forthwith. ^ Qxa![ty .Cega! Set~'ccs Sirrc~ r 9(i 8 •CER1Yf~~ pVjL Fw4V~iY I..ww VEt`WL~S'T "I.LS66DMITTEd IN NbR'fN pAKpTA "•AL54 ADM IH TDfA$ 1~0 . ~y~, Z - OOZ/OZ/9~9'$~56Z-E9~+ bObb~~£~~T ~~-W0~3 LZ ~5ti Z0.-6L-90 IIIIIIIIIIIIIIIII 111111 1111111 IIIIIIII1111 IIIII II111111111111111111 IIII IIIII11111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111111111~1~11111~1111111111111111111111 600/~00 g~bli-C~ f-"`~ ~~ Thanl~ ~ for your cooperation to date and goad luck with your other praspccta. Far your in~fornlation, please Brad enclosed a copy of the 'Ig District No. 1-21 deficiency esgmate from the City. truly, •. ~;~-_ Gregory V". Smith GVSJIajs File No. 0~2~706 cc Double Sull, LZ.C Attorney Stevocn ~oltnson • • b00/Z00 bObl~~p~1~T Q~-WO€I3 tiZ ~5~ ZA,-6Z-90 5b1~-Cl ~~Z~L~-~OOZ/OZ/949L~-56Z-E9L* ~~3 Kennedy & Graven, Chartered 200 South Sixth Street . Suite 470 Minneapolis, MN 55402 (612) 337-9300 a~-~zz~ssa July 16, 2002 Invoice # 52701 Monticello EDA Ollie Koropchak _ .~ O ~fl 505 Walnut Street Suite 1 ~ ~~ Monticello, MN 55362 ~ --^^ 'V 9-~ MN325-00006 General ~~ „~_ _ _`~" Through June 30, 2002 For All Legal Services As Follows: Hours Amount fi/17/2002 DJG Draft satisfactions of mortgages and release of UCC 0.80 120.00 Total Services : $ 120.00 For All Disbursements As Follows: 0 ~ ~ Fax Total Disbursements: Total Services and Disbursements: $ 2.00 $ 2.on 122.00 • • Monticello ED Ollie Koropchak 505 Walnut Street Suite 1 Monticelb, MN 55362 Through June 30, 2002 MN325-000Ofi General Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 I declare, under penalty of law, that this account, claim or demand is just and and that no part of it has been paid. Signature of ~-- r July 16, 2002 Statement No. 52701 ~`~~ r 122.00 Total Current Billing: 122.00 ~_~ 'i ;) E ~:~ ::, ~ JUL 18 20D2 --~ • • • • 1 ~~,,~\\ fNU bELUX6 HUSINE55 FORMS 1+8np-328-03bA vmw.dgWxeforms-com ' 0'.11 013/7-Ov ~Q~ ~ ~ ~ -C ~m i w -~] r rv -~ ._. r .!7 r LJl L1l ^^ 1 m 0 r r \~ ~ I'1'I Z m ~a m c ~ ~ Q N_ ~~NZ Ivm~m c~r1Q~~ N~nO N~oO N V v c C7 N N t!? ~~a ~'~z r°~fA `~ p ~ ~~~ Z y a ~~ a~ (c z Security Features Included. ~ Details on bark. 97774484 01 A ~\~ y ~ "+' '~, c~ i 5 I C. `nom, ~~ l ~ `~ 1 ~' a .a ~ Q cn N Exhibit F MCCF LOAN CRITERIA FINANCING POLICIES Loan Amounts- ^ $50,000 minimum ^ $2,500,000 maximum Eligible Projects: ^ Funded project must be within a member's area of operations. ^ Borrower may be a for-profit business entity, non-profit entity, cooperative, or local unit of government. ^ A financial institution must be a participant in the project financing. Allowable Use o#' Proceeds: ^ MCCF financing assistance may include, but is not limited to: fixed assets, including land and building purchase, building construction, leasehold improvements and renovations; acquisition, renovation or moving machinery and equipment; and working capital loans secured by fixed assets with fixed repayment schedules (not lines of credit). Loans may not be used to refinance existing debt. Ineligible Use of Proceeds: ^ Speculative real estate developments. ^ Purchase of equity positions in business enterprises. Interest Rates• ^ Adjustable and fixed rate loans are available, with rates determined by the MCCF member originating the loan. Loan Term Length: ^ The term of each 'loan will be determined on a case-by-case basis, with the primary factor being the collateral offered. Loans secured by real estate will generally not exceed 20 years, and loans secured by machinery and equipment will generally support a loan term of up to 10 years, not to exceed the depreciated life of the asset being financed. When possible, the MCCF loan will coincide with the term of the participating bank loan, including any balloon maturity provisions. Fees and Charles: - A 1.75% loan origination fee will be charged to all MCCF borrowers. This fee will be ~, assessed only for approved loans, but must be paid at or prior to loan closing. ^ Borrowers are responsible for paying all legal and other loan closing costs incurred by MCCF. CREDIT CRITERIA Equity or Cash Requirements: ^ Loan a licants must demonstrate an acceptable level of project equity, with a minimum • Pp of 10% equity provided by the borrower. Subordinated debt within the carne project financing may be considered as additional equity, subject to an intercreditor agreement. All other criteria will apply, including subordinate debt, when calculating debt coverage. Collateral Requirements: ^ Loan collateral coverage must be at least 100% of the MCCF loan amount on appraised value of assets, less all senior debt. ^ MCCF will consider the following collateral positions: first security interest, shared first security interest, subordinated security interest and shared subordinated security interest. Debt to Worth• ^ MCCF will consider financing projects that have a tangible net worth ratio on an actual and proforma basis of no greater than 10 to 1 (10% project equity or greater). Each project shall be analyzed on its own merits and its ability to service both existing and new debt. ^ MCCF borrowers (real estate holding companies excluded) should have a tangible net worth of S to 1 or less, based upon their most recent financial statements and, on a proforma basis, reflecting the new proposed debt. Personal Guarantees: ^ Personal guarantees will be required for all owners with 20% or greater ownership in closely held businesses. Manasement Experience & Company Performance: ^ The MCCF will require that the project have capable, skilled management through experience or expertise in the applicant's industry, either through previous successful business ownership or through appropriate managerial support services. Borrowers having erratic or undocumented earnings, or borrowers having new and unproven management, will require more loan risk sharing by the MCCF member originating the loan. Re a ment Abili ^ Applicants must demonstrate adequate historical cash flow showing trends that support debt service coverage of at least 1.1 to 1. Proforma financial cash flows must also support debt service coverage of at least one to one. 2