7.0.EDSR 06-14-2004 - Laserfiche WebLink

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EDA Finance Committee Minutes Page 2 June 9,2004 • It was of the Finance Committee's consensus that an in depth review of the Micro Loan Policy must occur at a later date,yet initial Micro Loan Policy amendments should take place due to the Badger Ventures application. MOVED BY CLIFF LUNDBERG AND SECONDED BY DAN TVEITE,THE FINANCE COMMITTEE RECOMMENDS THAT THE EDA CONSIDER THE FOLLOWING AMENDMENTS TO THE MICRO LOAN FUND POLICY AND GUIDELINES: • ELIMINATE THE SUPPLEMENTAL MICRO LOAN PROGRAM • AMEND THE FOLLOWING INDUSTRIAL INCENTIVE PROGRAM CRITERIA: o AMOUNT: ELIMINATE"UP TO$100,000 OF SECONDARY FINANCING NOT TO EXCEED 40%OF THE PROJECT COST" AND CHANGE TO "UP TO $100,000 OF SECONDARY FINANCING NOT TO EXCEED 20%OF THE PROJECT COST" o RATE: ELIMINATE"4 POINTS BELOW THE LOWEST PRIME RATE PUPLISHED..."AND CHANGE TO " 2 POINTS BELOW THE LOWEST PRIME RATE PUBLISHED IN THE WALL STREET JOURNAL THE DAY THE LOAN IS CLOSED, OR 3%, WHICHEVER IS GREATER" o TERM: ADD "BALLOON PAYMENT MUST NOT BE LONGER THAN BALLOON PAYMENT OF THE PARTICIPATING BANK" o CRITERIA: ELIMINATE "BORROWER MUST LOCATE IN THE • WEST BUSINESS PARK" THE FINANCE COMMITTEE RECOMMENDS THAT ALL MICRO LOANS BE CONSUMMATED VIA A BANK PARTICIPATION LOAN. THE FINANCE COMMITTEE ALSO RECOMMENDS THAT THE FOLLOWING BE ADDED TO THE BANK PARTICIPATION LOAN AGREEMENT AND THE BUSINESS SUBSIDY AGREEMENT: • "IF BORROWER DEFAULTS ON THE LOAN,THE CITY WILL COLLECT BASED ON A PRO-RATA BASIS WITH THE PARTICIPATING BANK" • "IF BORROWER DOES NOT MEET THE JOB AND WAGE GOALS SPECIFIED IN THE SUBSIDY AGREEMENT,THE INTEREST RATE WILL CHANGE TO 2 POINTS ABOVE THE PARTICIPATING BANK'S RATE,EFFECTIVE FROM THE TWO YEAR ANNIVERSARY OF THE LOAN CLOSING. UPON SUBSEQUENT ACHIEVEMENT OF THE JOB AND WAGE GOALS,THE INTEREST RATE WILL REVERT BACK TO THE RATE WHEN THE LOAN WAS ORIGINATED,EFFECTIVE FROM THE DATE OF ATTAINMENT OF THE JOB AND WAGE GOALS" THE MOTION CARRIED 4-0.