EDA Agenda 02-11-1997AGENDA
MONTICELLO ECONOMIC DEVELOPMENT AUTHItORITY
Tuesday, February 11, 1997 - 7:00 p.m.
City Hall
MEMBERS: President Ron Hoglund, Vice President Barb Schwientek, Assistant Treasurer Ken
Maus, Clint Herbst, Roger Carlson, Al Larson, and Bill Demeules.
STAFF: Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE OCTOBER 24, 1996, EDA MINUTES.
3. CONSIDERATION TO ELECT 1997 EDA OFFICERS.
4. CONSIDERATION TO REVIEW AND ACCEPT THE YEAR-END EDA FINANCIAL
STATEMENTS, ACTIVITY REPORT, AND PROPOSED 1997 BUDGET.
5. CONSIDERATION TO REVIEW YEAR-END FUND BALANCES OF THE GMEF,
UDAG, AND ERG FUNDS.
6. CONSIDERATION TO REVIEW THE GMEF GUIDELINES FOR POTENTIAL
AMENDING.
7. CONSIDERATION TO REVIEW THE DRAFT COPY OF THE 1997 ECONOMIC
DEVELOPMENT PRIORITIZATION WORKSHEET FOR INPUT.
8. OTHER BUSINESS:
a) Prospects.
9. ADJOURNMENT.
1VIIlVUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Thursday, October 24,1996 - 7:00 p.m.
City Hall
Members Present: Vice Chair Barb Schwientek, Assist Treasurer Ken Maus, Clint Herbst,
Tom Perrault, Al Larson, and Bill Demeules.
Member Absent: Chair Ron Hoglund.
Staff Present: Executive Director Ollie Koropchak
Staff Absent: Treasurer Rick Wolfsteller.
Guest Present: Steve Birkeland, Jr. Custom Canopy and Pat Dwyer, Bank of Elk River.
CALL TO ORDER.
Vice Chair Schwientek called the EDA meeting to order at 7:00 p.m.
2. CONSIDERATION TO APPROVE THE AUGUST 6, 1996, EDA NIINUTES.
Al Larson made a motion to approve the August 6, 1996, EDA minutes. Seconded by
Tom Perrault and with no corrections or additions, the minutes were approved as written.
Vote: 5-0-1. Yeas: Larson, Perrault, Schwientek, Maus, and Demeules. Nays: None.
Abstention: Herbst (not present).
3. CONSIDERATION OF A REQUEST FROM STEVE BIRKELAND, JR. RELATING
TO GMEF LOAN NO. 006.
Steve Birkeland, Jr. requested the EDA consider amending the terms of the Mortgage and
Assignment of Rent for GMEF Loan No. 006. Koropchak informed EDA members that
Loan No. 006 was approved for Steve Birkeland, Jr. (Custom Canopy) on March 30,
1993, and is a $42,500 real estate loan with a 4.5% interest rate. Currently, the loan has a
second position behind the original bank loan. The EDA balloon payment is due May 1,
1998. Payback is current and the remaining principal balance of the original $42,500 loan
as of October 24, 1996, is $37,672.47.
Speaking on behalf of Mr. Birkeland, Jr., Pat Dwyer of the Bank of Elk River, asked the
EDA to consider the $42,500 GMEF loan taking a third position behind the original bank
loan of $308,000 and a new bank loan of $60,000. Dwyer explained the reason for the
•
EDA MINUTES
OCTOBER 24, 1996
need of the new bank loan. As a confidential matter, Mr. Birkeland's accounting system
for the IltS was changed from a cash basis to an accrual basis, which resulted in a tax
liability of approximately $60,000. This is not a tax delinquency.
Dwyer informed EDA members that the 1993 appraisal of the property was $440,000 and
the original bank loan was $308.000. This a 3.1 coverage for the $42,500 EDA loan. The
1996 appraisal of the same property is $500,000, the original bank mortgage balance is
$228,645, and the proposed second bank mortgage is $60,000. This is a 3.8 coverage for
the EDA loan balance of $40,000. Equity has increased from $132,000 in 1993 to
$151,355 in 1996. Dwyer stated the borrower has good equity, is ofno risk, and is a
good customer.
EDA members reviewed the City Council minutes of July 8, 1996, outlining the conditions
of the approved conditional use permit. The EDA felt the determination or satisfaction for
completion of the conditions was a matter of the City Council and not the EDA. EDA
members advised Mr. Birkeland to call the city hall to schedule an inspection.
EDA members recognized for Mr. Birkeland to remortgage or refinance would be more
costly. They noted payback on the EDA loan was current, the 3.8 coverage is actually
greater as the remaining balance of the EDA loan is less than $40,000, and equity is
greater in 1996 than 1993. For these reasons, Al Larson made a motion amendmg the
terms of the Mortgage and Assignment of Rent and authorized EDA Attorney Steve
Bubul to prepare a Subordination Agreement placing GMEF Loan No. 006 in third
position behind the bank's first and second mortgage. Legal fees for preparation and filing
of the document are the responsibility of Steve Birkeland, Jr., the borrower. Council to
consider ratifying the EDA's approval at the City Council meeting of November 12,
1996. Bill Demeules seconded the motion and with no further discussion, the motion
passed unanimously. Job projection was 11 full-time, Birkeland said employment totaled
thirty full-time people.
4. OTHER BUSINESS:
a - c) EDA members accepted the written updates.
d) Other business -None.
2
EDA NIINUTES
OCTOBER 24, 1996
5. ADJOLTIZ[~1MENT.
The EDA meeting adjourned at 7:20 p.m
O~ ~~~~J
Ollie Koropchak, Executive Duector _
•
EDA AGENDA
FEBRUARY 11, 1997
3. Consideration to Elect 1997 EDA Officers.
A. Reference and BackcLround.
In order to comply with EDA Ordinance Amendment No. 172,
Section 2-3-2: The Authority shall annually elect a
president, vice president, treasurer, assistant treasurer, and
secretary. The current list of officers are:
President
Vice President
Treasurer
Assistant Treasurer
Secretary
Ron Hoglund
Barb Schwientek
Rick Wolfsteller
Ken Maus
Ollie Koropchak
Nominations will be made at the meeting; therefore, any EDA
member unable to attend the meeting and doesn't wish to be re-
elected or nominated, please contact me.
•
1997 EDA membership and terms:
Al Larson 12-97
Clint Herbst, Council 12-98
Barb Schwientek 12-98
Bill Demeules 12-99
Ron Hoglund 12-2000
Roger Carlson, Council 12-2001
Ken Maus 12-2001
B. Alternative Action:
1. Call for nominations from the floor, cease nominations,
and approve the nominations as elected 1997 EDA officers.
2. Table election of 1997 officers.
C. Recommendation:
Recommendation is for the 1996 officers to consider accepting
nomination to their respective office.
•
Page 1
EDA AGENDA
FEBRUARY 11,1997
4. Consideration to Review and Accept the Year-End EDA Financial
Statements, Activity Report, and 1997 Proposed Budget.
A. Reference and BackarQUn
In order to comply with EDA Ordinance Amendment No. 172,
Section 2-3-6: The Authority shall prepare an annual budget
projecting anticipated expenses and sources of revenue. And
B: The Authority shall prepare an annual report describing
its activities and providing an accurate statement of its
financial condition. Said report shall be submitted to the
City Council by March 1 of each year.
Enclosed are the year-end statements, proposed budget, and
activity report.
The EDA will need to review for necessary revision and/or
accept the statements/report.
Page 1
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
Statement of Revenues, Expenditures, and Changes in Fund Balance
For the Year Ended December 31, 1996
REVENUES
Appropriations -
1996 Liquor Fund
1996 UDAG
Interest Income - Notes
Interest Income - Investment (est.)
Interest Income - Investment (adj.)
Loan Fees
Miscellaneous **
TOTAL REVENUES
EXPENDITURES
Legal Fees ***
Professional Fees ****
Service Fees
Int. Adjustment - Notes
TOTAL EXPENDITURES
Excess of Revenues Over Expenditures
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
$ 70,000.00
$100,000.00
$ 24,603.17
$ 5,000.00
$ 9, 026.47
$ 2,550.00
S 4,248.44
$ 2,736.94
$ 254.50
$ 120.00
S 0
$215,428.08
S 3,111.44
$212,316.64
5729,853.94
5942,170.58
•
ADDENDUM
Revenues:
* Loan Fees:
GMEF No. 011, Tapper's II $1,500.00
GMEF No. 013, SELUEMED $1,050.00
Subtotal $2,550.00
** Miscellaneous:
H-Window Company, legal fee reimbursement $1,257.00
(SCERG closing documents)
Standard Iron, legal fee reimbursement $1,069.50
(Conflict of interest)
Custom Canopy, legal fee reimbursement $ 318.92
(Subordination Agreement)
Tapper's II, legal fee reimbursement $1,348.52
(Closing documents)
Tapper's II, closing fees reimbursement S 254.50
Subtotal $4,248.44
Expenditures:
gal Fees ***
Standard Iron, legal fee $1,069.50
Custom Canopy, legal fee $ 318.92
Tapper's II, legal fee $1,348.34
Subtotal $2,736.94
Professional Fees ****
Tapper's II, closing fees S 254.50
Subtotal $ 254.50
•
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
Balance Sheet
December 31, 1996
ASSETS
Cash in Bank $275,328.17
Notes Receivable - Tapper, Inc. $ 73,076.85
Notes Receivable - Muller Theatre -0-
Notes Receivable - SMM, Inc. $ 43,184.08
Notes Receivable - Aroplax Corp. $ 39,549.11
Notes Receivable - Custom Canopy, Inc. $ 37,432.88
Notes Receivable - Standard Iron $ 59,025.17
Notes Receivable - Vector Tool $ 48,669.57
Notes Receivable - Tapper, Inc. $ 98,591.36
Notes Receivable - SELUEMED $ 67,313.40
Appropriations Receivables -
1996 Other $ 100,000.00
1996 Liquor Fund 5 100,000.00
TOTAL ASSETS $942.170.58
FUND EQUITY
Fund Balance
Reserved for Participation Loans
(Economic Development) $942,170.58
TOTAL LIABILITIES AND FUND EQUITY $942,170.58
•
1996
ECONOMIC DEVELOPMENT AUTHORITY ACTIVITY REPORT
MEETING DATE SUBJECTS
Annual Meeting EDA officers elected for 1996:
held 1-23-96. President - Ron Hoglund
Vice President - Barb Schwientek
Treasurer - Rick Wolfsteller
Assistant Treasurer - Harvey Kendall
Secretary - Ollie Koropchak
Accepted EDA 1995 Year-End Financial
Statements and Activity Report. All
existing GMEF loan paybacks are current.
Reviewed the preliminary and formal GMEF
applications from Standard Iron & Wire
Works, Inc.
Approved GMEF Loan No. 012 for Standard
Iron & Wire Works, Inc. in the amount of
$70,000 at 6.5% fixed interest rate and
amortized over 7 years for equipment.
Requested $1,257 reimbursement from H-
Window for legal fees associated with the
preparation of closing documents by
Attorney Paul Weingarden.
4-23-96. Accepted letter of resignation from
Harvey Kendall and accepted appointment
of Ken Maus to the EDA as approved by the
City Council.
Elected Ken Maus as Assist Treasurer of
the EDA for 1996.
Denied a request to extend the
disbursement date from May 28, 1996 to
July 28, 1996, for GMEF Loan No. 011 for
Tappers, Inc. A $100,000 real estate and
M&E loan.
Received check in the amount of $1,257
from the H-Window Company.
8-6-96. Accepted Commissioner Demeules' statement
of disclosure that he was one of three
partners in the SELUEMED Limited
Liability Partnership which applied for a
GMEF Loan in the amount of $70,000.
(Loan No. 012, Null and void, July 23,
1996.)
1
Reviewed the preliminary and formal GMEF
application from Standard Iron & Wire
Works, Inc.
Approved GMEF Loan No. 013 for Standard
Iron & Wire Works, Inc. in the amount of
$70,000. 6.250 fixed interest rate,
amortized over 7 years, M&E Loan. 14 new
jobs, average wage $10.50. Disbursed
from Liquor Fund.
Approved a payback to the City in the
amount disbursed from the Liquor Fund
($383,000). Annual payback in an amount
not-to-exceed $50,000, provided the year-
end GMEF non-committed balance is greater
than $250,000. Paybacks subject to
annual review and approval by the EDA.
Requested no appropriation dollars from
the City's Liquor Fund for Budget Year
1997.
Amended GMEF Guidelines:
LOAN FEE: Loan fee to be paid by the
applicant to the EDA within 5 working
days after City Council approval of GMEF
loan. Non-refundable.
NON-PERFORMANCE EXTENSION - The 180-day
non-performance date can be extended up
to an additional 120 days:
1. A written request is received 30 days
prior to expiration of the 180-day non-
performance date.
2. Approval of the EDA membership by
majority vote.
10-24-96. Amended the terms of the Mortgage and
Assignment of Rent between Stephen
Birkeland, Jr. and the EDA and authorized
Attorney Bubul to prepare a Subordination
Agreement placing GMEF Loan No. 006 in
third position behind the Bank of Elk
River's first and second mortgage. Legal
fees for preparation and filing of the
document the responsibility of the
borrower, Birkeland, Jr.
•
2
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
GREATER MONTICELLO ENTERPRISE FUND (GMEF)
1997 Cash Flow Projection
BEGINNING CASH BALANCE, January 1997 $275,328.17
RECEIPTS
Appropriations, Expected -
SCERG $100,000.00
Notes Amortization Payments -
Tapper Inc. ($736.07 Mo.) 8-97 $ 5,888.56
Notes Receivable $ 70,989.14
Muller Theatre -0-
SMM, Inc. ($316.32 Mo.) 11-97 $ 3,479.52
Notes Receivable $ 41,350.00
Aroplax Corp. ($1,241.73 Mo.) 12-99 $ 14,900.76
Custom Canopy, Inc. ($269.03 Mo.) 6-98 $ 3,228.36
Standard Iron ($795.49 Mo.) 7-Ol $ 9,545.90
Vector Tool ($380.18 Mo.) 11-00 $ 4,562.16
Tapper's II ($760.36 Mo.) 4-01 $ 9,124.32
SELUEMED ($1,031.01 Mo.) 9-03 $ 12,372.12
terest Income - Investment $ 5,000.00
- an Fees $ 600.00
Miscellaneous S 1,000.00
TOTAL RECEIPTS $282,040.84
TOTAL BEGINNING BALANCE AND RECEIPTS $557,369.01
EXPENDITURES
GMEF Loans
T.J. Martin, Inc $ 50,000.00
Kleer-Flo $ 70,000.00
Other $80,000.00
Notes Payable - Liquor Fund Reimbursement $ 25,000.00
Legal Fees $ 1,000.00
Service Fees S 80.00
TOTAL EXPENDITURES $226.080.00
EXPECTED CASH BALANCE, December 1997 $331,289.01
•
EDA AGENDA
FEBRUARY 11, 1997
5. Consideration to Review Year end Fund Balan es of the GMEF
UDAG, and ERG Funds
A. Reference and Backaround•
All GMEF loan payback payments are current as accounted for in
the 1996 year-end statements. The approved $100,000 Tapper's
II GMEF Loan No. Oll was disbursed on May 28, 1996, from the
UDAG Fund. Fifteen new jobs are to be created within two years
for a total employment of 65.
Standard Iron GMEF Loan No. 012 became null and void July 23,
1996. Loan No. 013 for $70,000 was approved on August 6, 1996
for SELUEMED and was disbursed on August 30, 1996, from the
Liquor Fund. Fourteen new jobs are to be created within two
years for a total employment of 96.
Copies of the UDAG-FSI and SCERG-Aroplax fund balances are
enclosed. The payback payments are current and the fund
balances are available for use by the EDA.
The $250,000 SCERG and $100,000 CMIF-Standard Iron loan
payback payments are current as accounted in the 1996 year-end
statements. Remember, this SCERG was awarded to Wright County
for a loan to Standard Iron. The EDA receives $1,000 annually
from Wright County to administer the SCERG loan and $15 and
$10 per month to service the SCERG and CMIF loans,
respectively.
Page 1
GMEF Cash Balance
UDAG Cash Balance
SCREG-Aroplax Cash Balance
Subtotal
Less Liquor Fund Reimbursement
TOTAL AVAILABLE FOR 1997
•
•
SUMMARY
$275,328.17
$ 68,896.12
$129,483.04
$473,707.33
$ 25,000.00
$448,707.33
•
•
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GREATER MONTICELLO ENTERPRISE FUND (GMEF)
LOAN STATUS
December 31, 1996
Economic Development Authority (EDA) was created in 1989.
APPROVED LOANS
Tapper/Genereux (1990) $88,000.00
Muller/Monti Theatre (1990} $50,000.00
Barger/Suburban #004 (1992) $50,000.00
Schoen/Aroplax #005 (1992) $85,000.00
Birkeland/Custom Canopy #006 (1993} $42,500.00
Demeules/Standard Iron #007 (1993) $75,000.00
Blue Chip Dev/Vector Tool #010 {1995) $50,000.00
Tapper's #011 (1996) $100,000.00
Standard Iron/Seluemed #013 (1996) $70,000.00
TOTAL APPROVED LOANS
LOAN DISBURSEMENTS
_ Liquor Fund:
1991 to Tapper
1992 to Suburban
1992 to Aroplax
1994 to Standard Iron
1995 to Vector Tool
1996 to Standard Iron
Total Liquor Fund
610,500.00
$73, 000.00
$50,000.00
$65,000.00
$75,000.00
$50,000.00
$70,000.00
$383,000.00
UDAG Fund:
1991 to Tapper
1991 to Muller
1992 to Aroplax
1993 to Custom Canopy
1996 to Tapper's
Total UDAG Fund
$15,000.00
$50,000.00
$20,000.00
$42,500.00
$100,000.00
$227,500.00
TOTAL LOAN DISBURSEMENTS
•
610,500.00
GMEF.WK1: 02/07/97
•
•
•
URBAN DEVELOPMENT ACTION GRANT (UDAG) - FSI
FINANCIAL REPORT
December 31, 1996
Payback began in January, 1988 for 12 years ending in January, 2000.
Annual principal and interest payback total is $27,971.40.
GRANT TOTALS
Principal
Interest
TOTAL
REVENUES
ORIGINAL
$256,957.71
$78,700.35
$335,658.06
PAI D
$181,465.45
$70,277.15
$251,742.60
Principal Payback $181,465.45
Interest Payback $70,277.15
Interest Income -Investment:
1990 $6,342.02
1991 $8,593.59
1992 $8,436.32
1993 $5,227.10
1994 $3,756.77
1995 $12,297.72
1996
Transfer from GMEF - [company]
Transfer from GMEF - [company]
TOTAL REVENUES $296,396.12
EXPENDITURES
1991 Transfer to GMEF $65,000.00
1992 Transfer to GMEF $20,000.00
1993 Transfer to GMEF $42,500.00
1996 Transfer to GMEF (rapper's) $100,000.00
TOTAL EXPENDITURES $227,500.00
REMAINING
$75,492.26
$8,423.20
$83.915.46
FUND BALANCE FOR ECONOMIC DEVELOPMENT 68,896.12
UDAG.WK1: 02/07/97
•
SMALL CITIES ECONOMIC RECOVERY GRANT (SCERG) - AROPLAX
FINANCIAL REPORT
December 31, 1996
Payback began in December, 1992 for 7 years ending in November, 1999.
Annual principal and interest payback total is $29,801.40.
First $100,000 principal payback ends January, 1997.
GRANT TOTALS
Principal
Interest
TOTAL
Principal
Interest
TOTAL
ORIGINAL
$170,000.00
$37,969.92
PAID
$98,030.01
$23,659.14
07,969.92
fan. 1997
$170,000.00
$29,634.75
199,634.75
$121,689.15
MEF
$100,000.00
$24,008.11
$124,008.11
Grant must be expended by December 31, 1994, up to $170,000.
EXPENDED: $116,556.75 1993
$16,996.18 1993
$12,356.59 1993
$4,021.10 1 /18/94
$15,132.50 4/13/94
$4,936.88 7/20/94
$170,000.00
REVENUES
Principal Payback
Interest Payback
Interest Income -Investment:
1993
1994
1995
1996
TOTAL REVENUES
EXPENDITURES
$98,030.01
$23,659.14
$1,061.92
$1,256.00
$5,475.97
$0.00
$129,483.04
REMAINING
$71,969.99
$14,310.78
$86,280.77
TATE
$70,000.00
$5,626.64
$75,626.64
Transfer to GMEF $0.00
TOTAL EXPENDITURES $0.00
FUND BALANCE FOR SMALL CITIES GRANT 129,483.04
SCERG-A. WK1: 02/07/97
CENTRAL MINNESOTA INITIATIVE FUND (CMIF) -STANDARD IRON
FINANCIAL REPORT
December 31, 1996
Payback began in July, 1994 for 7 years ending in June, 2001.
Annual principal and interest payback total is $13,322.52.
C RANT TOTALS
EXPENDED: $100,000.00 1994
$100,000.00
REVENUES
Loan Payback
TOTAL REVENUES
EXPENDITURES
$33,306.30
$33, 306.30
Reimbursement to Wright County $33,006.30
Transfer to GMEF $0.00
TOTAL EXPENDITURES $33,006.30
FUND BALANCE FOR CENT MN INITIATIVE FUND $300.00
•
CMIF-SI. WK4: 02/07/97
SMALL CITIES ECONOMIC RECOVERY GRANT (SCERG) -STANDARD IRON
FINANCIAL REPORT
December 31, 1996
Payback began in July, 1994 for 7 years ending in June, 2001.
Annual principal and interest payback total is $33,306.12.
GRANT TOTALS
Grant must be expended by December 31,_1994, up to $250,000.
EXPENDED:
REVENUES
Loan Payback
Grant Administrative Fee
TOTAL REVENUES
EXPENDITURES
Reimbursement to Wright County
Transfer to GMEF
TOTAL EXPENDITURES
$250,000.00
FUND BALANCE FOR SMALL CITIES GRANT
•
8/18/94
$83,265.30
$3,000.00
$86,265.30
$82,815.30
$0.00
$82,815.30
3,450.00
SCERG-SI. WK1: 02/07/97
TAX INCREMENT FINANCING LOAN 1-12 AROPLAX
FINANCIAL REPORT
December 31, 1996
Payback began in May, 1993 for 9 years ending in November, 2001.
Semi-annual principal and interest payments total $2369.30 for the year.
LOAN TOTALS
Principal
Interest
TOTAL
REVENUES
Principal Payback
Interest Payback
TOTAL REVENUES
EXPENDITURES
TOTAL EXPENDITURES
FUND BALANCE FOR TIF 1-12 AROPLAX
•
ORIGINAL
$15,000.00
$6,323.59
PAI D
$5,390.66
$4,086.54
1,323.59 $9,477.20
`funds are available only for public improvements
$5,390.66
$4,086.54
$9,477.20
$0.00
REMAINING
$9,609.34
$2,237.05
$11,846.39
9,477.20
TI F12. W K1: 02/07/97
TAX INCREMENT FINANCING LOAN 1-14 SUBURBAN
FINANCIAL REPORT
December 31, 1996
Payback began in May, 1993 for 8 years ending in May, 2000.
Semi-annual principal and interest payments total $3522.52 for the year.
LOAN TOTALS
Principal
Interest
TOTAL
REVENUES
Principal Payback
Interest Payback
TOTAL REVENUES
EXPENDITURES
TOTAL EXPENDITURES
ORIGINAL
$19,575.00
$6,843.82
$26,418.82
FUND BALANCE FOR TIF 1-14 SUBURBAN
'funds are available only for public improvements
•
PAI D
$7,719.11
$4,609.71
$12,328.82
$7,719.11
$4,609.71
$12,328.82
$0.00
REMAINING
$11,855.89
$2,234.11
$14,090.00
12,328.82
TI F14. W K1: 02/07/97
EDA AGENDA
FEBRUARY 11, 1997
Consideration to review the GMEF Guidelines for potential amending
A. Reference and Back ound~
Prior to reviewing the terms and condition of the Loan Fee for the GMEF Guidelines, it
was the intent to recommend a reduction of the 1.5% loan fee. However, upon reading
the entire criteria, the recommendation is to leave as is since the EDA retains the right to
reduce or waive the loan fee or portion of loan fee.
In earlier discussions with Kevin Doty, Marquette Bank, he agreed the EDA 1.5% loan fee
appeared high. Lending institutions are very competitve and bank fees run .5% of the
bank loan. The intent of the GMEF is to assist an industrial business at its most critical
time of start-up, relocation, or growth and to have a higher fee than a lending institution
may be sending the wrong or negative message.
Using the current criteria, here is an example of a $50,000 GMEF loan:
$50,000 x .015 = $750 or minimum $200.
•
Using the bank's fee: $50,000 x .005 = $250
Again, because the EDA has flexibility, the recommendation is to leave as is and consider
exercising the right to reduce the loan fee upon approval of future loans. In the past, the
EDA has charged the not-to-exceed 1.5% of the total loan project.
Attached is a copy of the GMEF loan fee criteria.
•
N. TERMS AND CONDITIONS
•
•
C
LOAN SIZE - Minimum of X5,000 and maximum not to
exceed 50% of the remaining revolving loan
fund balance; for example, if the remaining
revolving loan fund balance is X50,000, the
maximum loan issuance is X25,000.
LEVERAGING - Minimum 6001c private/public non-GMEF
Maximum 30% public (GMEF)
Minimum 10% equity EDA loan
LOAN TERM - Personal property term not to exceed life of
equipment (generally 5-7 years). Real estate
property maximum of 5-year maturity
amortized up to 30 years. Balloon payment at
5 years.
INTEREST RATE - Fixed rate not less than 2% below Minneapolis
prime rate. Prime rate per National Bank of
Minneapolis on date of EDA loan approval.
LOAN FEE - Minimum fee of X200 but not to exceed 1.5010 of
the total loan project.* Fees are to be
documented and no duplication of fees
between the lending institution and the RLF.
Loan fee maybe incorporated into project cost.
EDA retains the right to reduce or waive loan
fee or portion of loan fee.
*Fee to be paid by applicant to the EDA within
5 working days after City Council approval of
GMEF loan. Nonrefundable.
`.J
GMEF: 8/26/96
PREPAYMENT
POLICY -
DEFERRAL OF
PAYMENTS -
No penalty for prepayment.
1. Approval of the EDA membership by
majority vote.
2. Extend the balloon if unable to
refinance, verification letter from two
lending institutions subject to Board
approval.
Page 3
EDA AGENDA
FEBRUARY 11, 1997
7. Consideration to reivew the draft copy of the 1997 Economic Development Prioritization
Worksheet for input.
A. Reference and Background:
Enclosed are two worksheets. One prepared by Administration and one prepared by the
Office of Economic Development. The worksheet will be used by the City Council for
prioritization of projects which support the objectives of the Comprehensive Plan. The
worksheet will also assist the Council in determining if the current staffing is sufficient to
carry out the prioritized projects in adition to projects driven by development or normal
maintanence.
The two lists have some over lap. Please review for suggestions and ranking. A joint
meeting is planned by the Mayor early April.
I've also enclosed a copy of Big Lakes' revolving loan fund criteria which includes
commerical loans. Please review for discussion.
•
•
FIRST DRAFT
1997 PRIORITIZATION WORKSHEET
OFFICE OF ECONOMIC DEVELOPMENT
HRA Develop a program and guidelines for a
volunteer acquisition program for single residential
homes
HRA Develop a program and guidelines for a loan to
encourage significant home remodeling
HRA Develop a marketing program which markets City's
housing programs
HRAlEDA Develop atargeted-marketing program for industrial
development including marketing the City's industrial programs.
HRA/COUNCIL Re-assess Local TIF Policies
HRAlEDA Potential to merge commissions
Compare commission powers with local goals
HRA Establish TIF Redevelopment District for
redevelopment of the downtown/riverfront
study area
HRA Relocation of JM Oil, Riverside Oil, and
Ferrellgas
HRA Purchase of BN ROW in core city area
(Refine rules for using 5th St ROW)
HRA Other redevelopment activities such as
Cohen's building, mall, and hotel
HRA Potential assistance in relocation of
of businesses in the Chelsea/Highway 25
Realignment area
HRA Finalize -Lake Tool, Prairie West, Fay-Mar
HRA Prepare TIF Maps for GIS.
EDA Create file system.
•
EDA Establish commerciaUretail
revolving loan program for real property rehabilitation.
Develop policy guidelines which encourage owners to
meet the Standard Building and American Disability Act
Codes and to increase the tax base
HRA Establish a reserve fund
for development>acquisition ofindustrial land
HRA/EDA Support staff -economic development
Building Finalize the preparation of building permit and site
review process for commerciaUindustrial development
ADM Finalize the commerciaUindustrial method for
payment of the Storm Sewer Trunk Fee
EDA Develop a home page for site location on Internet
and a-mail accessibility.
EDA Develop apro-active market plan for industrial recruitment.
"Ready for Business"
EDA/Planning Rename Business Campus to Industrial Campus
and consideration of a reduction of the 30% green space
requirement.
HRA Develop a cost accounting system for TIF Districts
EDA Develop a cost accounting system for GMEF Loans
J~$, 1997
~~
By Economic Development Director
1997 PRIORITIZATION WORKSHEET
PlanningBuilding/Economic Development Depts.
A = Development driven or mandated by State--projects that require attention.
B = Project recently identified as needed - in budget
C = New project idea
Please note that day-to-day workload is not included in this listing.
Gen.
De t.
Cate or 'Budget
Amt.
A/B/C - -
Pro'eet. Deseri Lion i
i
Admin Admin B Remodel and/or begin planning for relocation of city hall. ~
Admin Finance Budget review process -assemble budget data & give to Council. ~
Admin Finance Direct Citv staff to survev other communities -fees.
Admin Finance NA C Prepare capital improvement plan (city wide)
Admin Finance NA C Research financial impact of transition from NSP to non-NSP tax base.
Admin Finance NA A Resolve storm sewer trunk tee program. j
Admin Finance NA C Revisit and/or revise fee structure associated with development--all fees.
Admin Personnel NA C Consider merging EDA/HRA.
Admin Personnel C Continuing education plan-- Council, commissions. & staff. ~'
Admin Personnel NA C Define proper level of MCP support from Citv staff.
Admin Personnel NA C Evaluate performance appraisal system. ~
Admin Personnel $25,000 B Staff support -park administration and maintenance. ~
Admin Personnel B Staff support -planning & building dept.
Admin Personnel Staff support--additional clerical staff support needed.
Admin Pub info NA C Assemble data for Internet applications. '~
Admin Pub info C Install voice mail.
Admin Pub relations NA C Develop customer service feedback survey sheet.
Admin Pub relations NA C Develop priorities for service delivery.
Admin Pub relations NA A Develop service level measures in accordance with State of iii 1 requirements.
Admin Records Add specific record categories to retention schedule.
Admin Records Begin records destruction at public works.
Admin Records Combine basement administrative records into one system (all side-tab).
Admin Records Continue inventory of basement records.
Admin Records Create and implement records management plan.
Admin Records Create economic development filing system.
Admin Records Inventory records at public works.
Admin Records Records destruction for 1997 (city hall).
Admin Records Reduce amt of record storage needed--microfiche process.
Admin Records Reorganize HRA and EDA records.
Admin Records Research data privacy act--distribute info. to clerical support staff.
Admin Records Review all records from OSiti1 t38 boxes)--copy those needed--file copies.
Building Admin $8,000 B Develop plan for computerization of building permits.
Building Admin NA C Enhance commercial/industrial blg permit info design standards/process.
Building Admin A Gain compliance with ADA guidelines. ~'
wk1997.wk4: 01 /30/97 Page 1
Building Admin NA B Improve zoning code enforcement -perhaps hire intern.
Building Admin NA A Maintain building permit moratorium in the core area.
Building Admin NA C Standardize address system.
Building Housing NA C Develop and implement rental housing code and licensing program. I
Building Project NA A High School building construction project. i
Computer NA C Organize internet development -process for updating data.
Computer NA C update 5-year plan for computer application development. I
Computer Admin $7,000 B Explore GIS options - develop a 5-year plan -budget item in 1996 -not done
Econ Dev NA C Assemble data for internet applications.
Econ Dev C Dev. proactive mrktg network -elected officials, realtors, builders, Indust land owners.
Econ Dev C L~pdate information brochures.
HRA Resolve post office access problems.
HRA Econ Dev NA B Develop TIF application guidelines.
HRA Econ Dev A Lake Tool TIF project monitoring.
HRA Housing C Dan Reed - home relocation.
HRA Housing A Prairie West II TIF project monitoring.
HRA Housing NA B Scattered housing site program. ~
HRA MCP C Armory development downtown or at high school. '
HRA MCP C Land acquisition activities to carry out downtown river front redevelopment. ~
HRA MCP C Purch BN ROW in core city area. Refine rules for using 5th St ROW.
HRA MCP C Relocate Ferrellgas.
HRA MCP C Relocate JM Oil and Riverside Oil.
HRA MCP C Store front redesign/revolving loan fund.
i Parks Admin NA C Assemble data for internet applications.
Parks Dev $12.000 B Freeway Park -concession area.
Parks Dev $15,000 B Implement shade tree planting program. i
Parks Dev $2.000 B i4leadow Oak Park basketball.
Parks Dev/1~ICP $20,000 B Bridge Park improvements. ~
Parks Maint NA C Adjust mowing practices -introduce native grasses where appropriate.
Parks iVlaint $10,000 B Playground equipment maintenance.
Parks Maint NA B Snowmobile ordinance amendments.
Parks Pathway NA B Apply for ISTEA funds for funding of pedestrian overpass at County Rd 118.
Parks Pathway $60,000 B Construction along CSAH 118 connecting School Blvd to CSAH 75.
Parks Pathway $60,000 B Construction along river -Mississippi Dr. to Ellison Park.
Parks Pathway $30,000 B Construction from Middle School to Meadow Oak. ~
Parks Pathway Investigate re-opening pathway for winter use.
Parks Pathway TIF B Mississippi Shores foot bridge. ~
Parks Pathway $2,500 B biontissippi Park/NSP/DNR Pathway -Park and Prairie development.
Parks Plan B Location of City/Lions Club park development. i
Parks Plan C Playground equipment -addition of handicap accessible equipment.
Parks Tree NA B Tree ordinance update and implementation.
Planning Admin NA C Assemble data for internet applications. '
Planning Admin NA B Cost recovery -increase planning fees and commitment to recovering costs. '
Planning Admin C Dnwntown/riverfront redevelopment efforts. ~i
Planning Admin NA C Improve follow-up on individual cases.
Planning Admin NA C Parking along CR ?5 across from Pinewood School. '
Planning Admin NA C Participate in regional planning initiatives. ~
l.._ J
wk1997.wk4: 01 /30/97 Page 2
Planning Admin NA C Prepare Annual Planning Report.
Planning Admin NA C Ranch style social service center cooperative effort -Donna Mueller/Bohanon sludge si>
Planning Annex NA B Amendments to Citv/Township Urbanization Agreement & map.
lanning Annex NA B Amendments to MOAA guidelines boundaries.
Planning ~ Annex NA A Art Hill - 40-acre residential development
Planning Annex NA A John Leersson - 10-acre residential project.
Planning Annex NA A Orrin Thompson - 80-acre residential project.
Planning Annex NA A Resurrection Church -site review/annexation/rezoning process.
Planning Annex NA B Submit comp plan to MOAA for final ratification. ~
Planning Ord NA B Adjust business campus -change name -reduce 30% requirement.
Planning Ord NA B Development of low density housing standards? > 12,000 square feet/lot?
Planning Ord NA B Outside storage - Regs. limiting outside storage as a ~o of principal use.
Planning Ord NA C Pole building regulations.
Planning Ord NA B Screening fence standards - improve definition of minimum standards.
lanning
Ord
NA
C ~,
Subdivision design standards -examine for possible amendments. i
Planning Ord NA A Telecommunication tower ordinance amendments. ~~
Planning Ord NA B Variance procedure.
Planning Ord NA C Zoning decisions on strip retail south of freeway.
Planning Ord~ICP C Act on future MCP initiatives. ~
Planning Ord/bICP NA B Analyze multi-family -possible zoning ordinance amendments to map.
Planning Ord/11-iCP NA B Commercial zoning districts -proper mix of uses identified? I
Planning Ord/1~fCP NA C Ordinance amendment -architectural standards.
Planning Ord/1~SCP NA C ( Ordinance amendment -housing.
Planning Ord/MCP NA C Ordinance amendment - signage.
Planning Ord~fCP NA B PZM district/downtown designation -possible amendments along River St.
Planning Plat NA A Close out Briar Oakes Estate II improvement project
Planning Plat NA A Close out Klein Farms Estates. i
Planning Plat NA A Close out Meadow Oak 4th imprnvement projeci.
Planning Plat NA A Close out River Mill project.
Planning Plat NA A Finalize Monticello Business Center plat.
Planning Plat NA I A Hospital plat update and record. ~
Planning Plat NA C Replat Meadow Oak lots into Eastwood Knoll development.
Planning Project NA A Dave Peterson Monticello Ford expansion -Process CUP. ~
Planning Project
!
Dundas Road/Highway 25 realisnment.
Planning Project NA A Gould Bros. expansion -Process CUP.
Planning Project NA A Grimsmo/Peterson Funeral Home -Process CUP.
Planning Project NA A High School building environmental assessment and CUP process. !
Planning Project $100,000 C Hwy 2.5/Chelsea Rd improvements and all associated land transactions.
Planning Project NA A Kjellberg East sanitary sewer connection -complete the project.
Planning Project NA C Kjellberg West san. sewer connection -development agreement.
Planning Project NA A Klein Farms III -Plat approval and public improvement process.
Planning Project C Mall redevelopment.
Planning Project C Open up access to Linn Street for post office.
Planning Project NA A Ruff Auto Planned Unit Development -Complete the project.
Planning Project NA A St. Henrv's -determine min. for 7th St. -CUP and public imp. process.
Planning Streets NA B Determine design for CSAH 77 -steps to take to manage traffic.
PW Build and relocate dog pound.
wk1997.wk4: 01 /30/97 Page 3
PW Downtown Develop comprehensive maint. program & priorities for streetscape landscaping. !
PW Downtown Inspection and repair of downtown lighting system.
pW Ord Draft new rate structure and ordinance for sanitary sewer user charge.
PW Ord ~ Revise on-site sewage treatment ordinance (assist Building Official).
PW Parking Plan, develop plans & specs for parking lot overlays in downtown parking lots. !
PW Parks Clean up Battle Rapids Park.
1'W Parks Clean up Otter Creek Park.
PW Parks Establish comprehensive park maintenance program.
PW Parks (Establish summer recreation program and use svstem for city facilities.
PW Parks Park improvement projects as per Parks Commission. I
PW Pathway Bridge over storm sewer at Mississippi Shores pathway. ~
pW Pathway Develop summer pathway maintenance program to conform with MN/DOT stds.
PW Planning Develop capital improvement program for 5-10 years.
PW Policy Draft new snowplowing/snow removal policy.
PW Purchasing Joint venture with Buffalo & Elk River for bituminous cold planer attachment. j
PW Purchasing Purchase and install Tube rack at PW shop. ~
PW Purchasing Specifications, bids, and purchase new air compressor for street dept.
PW Purchasing Specifications, bids. & purchase 4 x 4 vehicle for Construction Inspector.
PW Purchasing Specifications, bids, & purchase new paint striper. ~
PW Purchasing Specifications, bids, & purchase small loader and trailer for parks dept. ~
PW Recycling Revise recycling program with Superior Services.
PW Refuse Develop contract with Elk River Landfill. !
PW Refuse Integrate 30-gallon garbage cart into newsletter & garbage pickup system.
PW RR Railroad crossing upgrade at West Co. Rd. 39 and Walnut.
PW Site Complete fencing, lighting, and screening at PW facility.
PW Site Regrade and restore West Co. Rd. 39 ditch at PW facility.
PW Site Specifications & obtain quotes for roof repair to Office of Public Works.
PW Streets Draft comprehensive sign maintenance and replacement program.
PW Streets Obtain NSP funding for conversion of traffic lights to LED.
PW Streets Plan, specs, bids or quotes on pavement replacement on some 773 intersections.
PW Streets Sealcoat program - 1998.
PW Water Dept Block repair to pump house #1. i
PW Water Dept Complete fencing of 800,000 gallon above-ground water tank.
PW Water Dept
i
Complete water tower painting project.
PW Water Dept Drain underground reservoir, clean, & inspect. ~
PW Water Dept Leak detection testing of various water mains. ~
PW Water Dept Specifications, bids, and refurbish well #2.
PW WWTP
Clean up steel & litter from Lindberg & Kruse properties at WWTP.
PW WWTP Tree planting, building floor, and entry roads on biosolids site.
PW WWTP Wastewater treatment facility expansion. !
•
wk1997.wk4: 01 /30/97 Page 4
City of Big Lake Revolving Loan Fund
The purpose of the Revolving Loan Fund (RLF) is to establish a low interest, loan program to
provide capability and incentive for owners and tenants to upgrade the a
ppearance, structural,
and condition of their places of business, thereby improving their marketability and retaining
and expanding job opportunities, This program is open to all business and ro e
within the zoned commercial and industrial areas of the City of Big Lake. P P ~ owners
Loans maybe made under this plan to the extent that funds are available, as allocated to the
fund by the Sig Lake Economic Development Authority (BLEDA), so long as there are lenders
Participating and eligible loan recipients, unless the RLF is terminated, upon written notice to
all participating lenders of the BLEDA's intention to terminate the RLF. If the revolving loan
fund is terminated, such termination shall not affect the rights and obligations of the
participating lenders nor those of the BLEDA with respect to loans outstanding on the effective
date of such determination. To become a participating lender an FDIC or FSLIC insured
financial institution need only provide a letter to the BLEDA of its agreement to the Plan. A
participating lender may withdraw from the program at any time, with respect to future loans,
by giving written notice to the BLEDA of its intent to withdraw
Nature of T.~-ana
The Revolving Loan Fund may provide up to twenty-five percent (25%) of a loan request, not
to exceed .$10,000.00 per loan, provided that the loan recipient meets eligibility requirements
and the balance of the funding amount is provided by a participating lender. The borrower will
be required to contribute ten percent (10%) equity in the project. Interest on the portion of the
loan borrowed from the RLF will be provided at zero percent (0%) interest and the portion
borrowed from the participating lender shall not exceed two percent (2%) above the New York
prime rate. Other loan terms shall be determined by the participating lender, except that no
repayment period shall exceed ten (10) years.
Participating lenders shall pre-screen loan applications under this Plan to determine whether
applications meet the Plan's eligibility requirements, and shall additionally apply their ordinary
standards for commercial improvement loans to such applications. Participating lenders then
shall provisionally approve or reject the application, provided that no application can be rejected
any unlawful reason. If an application is provisionally approved, it shall be forwarded to the
DA for further consideration.
Participating lenders shall close the loans, obtaining properly executed mortgages, obtain two
separate promissory notes (one in favor of the bank and one in favor of BLEDA), and all other
data required by banldng regulations, from recipients. The two promissory notes would be
secured by the mortgage agreement. At the closing, each loan recipient shall certify that such
plicant has read, understands, and will comply with the requirements of this Plan. The
~rticipating lender shall provide to the loan reci ient such di
P sclosurea as maybe required by
law. Monthly, the participating lender shall remit to the BLEDA Administrator that portion of
any loan recipient's monthly payment which represents repayment of the RLF portion of the
principal on the loan. The BLEDA shall not be a party to any of the loan documents but
Participating lenders, in agreeing to the terms of the Plan, agree to act as the BLEDA's agent in
receiving the loan given and further agree to transmit that portion to the BLEDA, within at
least 15 days of receipt. Participating lenders shall provide copies of all loan documents to the
BLEDA along with a certificate showing the extent of the RLF participation in the loan. Loan
documents shall reflect the entire amount of debt incurred, including the portion owed to the
BLEDA, and in any foreclosure or other collection remedy employed by any participating lender,
such lender shall use its best eflorts to collect that portion owed to the BLEDA as well as that
portion owed to the lender; however, any amount so collected shall be allocated first to interest
due to the participating lender, then to principal due to the participating lender, then to
reasonable collection costs, and the remainder to the BLEDA. Participating lenders shall have
the sole responsibility of determining applicant's credit risk and filing liens on collateral.
The BLEDA shall consider each application at its regularly scheduled meeting immediately
wing receipt of the application from the participating lender. The BLEDA Board shall make
ecommendation for approval or denial of the application to the City Council, who will make
the final decision. The City Council shall approve the application for RLF participation or reject
such participation, stating the reasons why. Such rejection shall not preclude re-submission of
the application with appropriate modifications. At this time of any application's
recommendation for approval by the City Council, an appropriate amount of money in the RLF
shall be reserved to cover the RLF's anticipated participation in the loan or the BLEDA shall
indicate that insufFicient funds for such participation then exist, in which case the application
shall be placed on a waiting list until such time as funds become available or the application is
withdrawn. The City Council shall communicate its action promptly to the participating lender.
At any time prior to closing on a loan, the participating lender may disapprove an application
which had obtained preliminary approval, based upon changed circumstances or for any other
reasonable cause.
Applicants may be individual owners, partnerships, corporations, tenant operators, or
contract for deed purchasers of buildings within the commercial and industrial areas of the City
of Big Lake, but must provide all documentation of entity status requested in the Plan
application forms. Applicants must have the ability to repay the loan and be an acceptable
t risk as determined by a participating lender. Applicants must obtain preliminary
royal from a participating lender in order to be considered for participation from the
Revolving Loan Fund. The applicant's property must be a conforming use under the City Zoning
Ordinance.
The application shall be made on forms approved by the BLEDA and participating lenders
~d shall include information detailing the ap licant's restorati
property and shall give permission for pre-inspection of the propertyr The appli agioneshalblect
contain a proposal outlining the scope of work, which shall detail the work to be performed,
estimated cost, completion date, amount of funds sought for eligible work, as well as any other
documentation necessary to achieve any required building permit. Proposed contractors and
subcontractors, who must be licensed and meet insurance and bonding requirements of the
participating lenders, shall be identified.
Loan proceeds must be used to improve the exterior appearance of buildings and property
within the commerciaUindustrial area of the City of Big lake. Loan proceeds may not be used for
interior improvements; however, interior improvements may be required as a condition of the
granting of the loan if such interior improvements are necessary to obtain a valid certificate of
occupancy from the City of Big Lake. All improvements must meet UBC Code conformance.
Improvements to the following are eligible expenditures:
* Cleaning, staining, and painting of exterior surfaces.
* Masonry repairs.
* Reparing or replacing of cornices, entrances, doors, windows, decorative details
and awnings.
* Sign removals, repairments, or replacement.
* Architectural design services for plans and specifications.
* Parking lots, including lighting, surfacing, and landscaping not financed by speaal
assessment.
* wilding expansion.
* Building Identification.
* Other items that are viewed necessary to compliment the exterior.
* Building Permits.
* Streetscape costs not financed by special assessments.
* Handicapped access to the interior.
* Bathrooms
* Demolition of existing buildings or structures provided a new building is constructed.
Loan proceeds may ~ be applied to the following:
* Refinancing of existing debt.
* Non-fixed improvements.
* Working capital.
* Inventory.
* Sweat equity (payment for the applicant's own labor and performance for impoovements).
Loans proceeds under $25,000.00 shall be disbursed at closing. Contractor's must present
proposals, bids, or material receipts to verify the loan amount. Loan proceeds over $25,000.00
shall be paid directly to applicants only after the work for which payment is requested has been
performed and the work has been accepted in writing by the Big Lake Economic Development
Authority (BLEDA) or its representatives. The quality and progress of the work shall be
monitored by the loan recipient and BLEDA or its representative. All invoices and other
necessary information as related to the project costs shall be provided to BLEDA or its
representatives prior to the disbursement of funds.
If periodic draws are requested, the draws shall be disbursed through a title insurance
company or the participating lender at their option and be limited to the amounts equal to the
value of materials furnished and/or services completed at the time of the request and shall be
limited in number to three (3), including final payment. All costs related to the title company's
fees shall be borne by the loan applicant. No payment shall be made without appropriate lien
waivers being given.
All work is to be performed in accordance with all applicable laws and ordinances and shall
be inspected by the Building Inspector, whether or not the work requires a permit, to insure
compliance with specifications prior to final payment.
Headings contained herein are for convenience only and are not intended to limit the content
of any paragraph.
•
CITY OF BIG LAKE
ECONOMIC DF.VELOPMF.NT AUTHORITY
REVOLVING LOAN FUND (RLF) PROGRAM
APPLICATION FOR FUNDS
COMPANY INFORMATION
Name of Business:
Current Address:
Telephone Number:
Primary Contact Person:
Title:
Telephone Number:
Nature of Business:
Form of Business Organization:
CD Purchaser Tenant Operator
So 1e Proprietorship
Limited Partnership
Partnership
Corporation (Cooperative)
Number of Employees: Full-Time:
Part-Time
Property Owner:
(If the property owner is not t}ie owner of the business, a letter of project
' approval must accompany this application.)
PRODUCT DESCRIPTION
Briefly describe ttie nature of the project:
Amount Requested From RLF Program: $
Percent of Total Project Cost:
To Be Used For:
Is the building under consideration a conforming
conforming use under the City Zoning Ordinance? _
Please detail your interest in restoring and/or
property:
•
r1
use, or a legal non-
maintaining [he s~-bject
I }~ereby give permission to the City of Big Lake's representative to pre-
inspect t}ie subject property? Y,F.S
NO
Please outline the scope and detail of the work to be performed:
W}gat is the estimated completion date for t}ie project?
Please list the proposed contractors and subcontractors and the quoted
project cost for each:
I }lave read, understand, and agree to comply with the Plan for the Revolving
Loan Fund of the Big Lake Economic Development Authority and for the City of
Big Lake.
Signature
Date
-2-
•
Big Lake Economic Development Authority
C/0 Wiliam Coff
City of Big Lake
1'0 Box 250
Big Lake, MN 55309
RE: Participation in the Revolving Loan Fund
Dear BLF.DA Commissioners:
On behalf. of
(ttie lender) the undersigned hereby notifies you of tine lender's intent to
participated in the Revolving Loan Fund as described in the Plan adopted by
Big Lake Economic Development Authority in and Eor the City of Dig Lake. I
warrant that I am authorized by the lender to issue this letter on its behalf
anti that t}ie lender is an FDIC or FSLIC insured lender. The lender has
received and reviewed a copy of the Plan and hereby agrees to its terms,
including all responsibilities assigned therein to participating lenders.
The lender is submitting this Letter of Participation as a result of its
decision to approve the loan application in tt~e total amount of
$ ($ from lender, $
from the BLEDA). After reviewing the aforementioned application, the lender,
in its hest judgement, deems (the
,applicant) credit worthy and eligible to participate in this Revolving Loan
Fund/Commercial Rehabilitation Program.
Name of Participating Lender Date
BY:
ITS:
•