7.0. EDSR 03-13-1995 - Laserfiche WebLink

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• Debt service for the :ro'ect is outlined as follows: p ) o s Source Annual Debt Service Primary Lender (1st & 2nd Loan) $32,268 (Initially) EDA Micro Loan $ 5,846 (Initially) TOTAL $38,114 Income/Expenses/Cash Flow. Etc. The office building at 403 Main Street is intended to provide professional office base for Century 21-White Dove, T.S. Construction, and Walsh Title. Income from the leases will be applied toward debt service. In addition, the remaining residence at 413 Main Street also generates a monthly income that can be attributable to debt service. The first year cash flow from the leases and the rental income is projected at $45,600. For the second year, this increases to $55,200. In 1995, expenses such as insurance, taxes, and principal and interest payments (based on twelve payments) are projected at $44,714. In 1996, these expenses are estimated at $54,914. Circumstances for Loan Request • Information concerning the basis for this loan request is more thoroughly g Y outlined in a letter dated February 24, 1995, from the principals of T.J. Properties. In addition, the applicant's primary lender has also identified supporting rationale for the Micro Loan request. Should the Finance Committee recommend approval of this loan, perhaps it can be done subject to a condition which requires that T.J. Properties apply the proceeds from a future sale/closing of the former Century 21 building at 907 Main Street toward reducing the EDA loan balance. This condition enables the EDA's participation in this loan to be substantially reduced based on the disposal of surplus property currently held by Tim or Jerry Smith. Action Requested Following its review of the loan request from T.J. Properties, the Finance Committee is asked to make a recommendation to the EDA Commissioners regarding the funding of this loan. The EDA will meet on March 13, 1995, to consider this matter. As with previous EDA loans, this loan would be secured by a real estate • mortgage on the 403 and 413 Main Street properties along with a Promissory Note and Personal Guaranty signed by Tim and Jerry Smith of T.J.