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<br />Ms. Huot presented Baker Tilly’s financial analysis on the $1,375,000 land write down on 14 acres of <br />city owned land. Ms. Huot advised that the developer stated that without assistance being provided <br />upfront through a land write down, the project would not be viable due to the following factors: <br /> Using equity to pay for upfront land costs would impact HMI’s working capital. <br /> Bank would require higher equity investment from PLM Properties if upfront assistance <br />were not provided. <br /> Limitations on the level of bank financing the project can secure due to the size of the <br />capital investment and project. <br /> <br />Ms. Huot shared that after Baker Tilly’s analysis, upfront assistance with the support of TIF would <br />be necessary for this project to proceed as proposed. <br /> <br />Mr. O’Neil advised that the Council will consider interest rates of the TIF at their upcoming <br />meeting. <br /> <br />Pat Menth advised that they would be interested in starting the phase two expansion in three to five <br />years. <br /> <br />Moved by Blesener and seconded by Gromberg to approve the recommendation to the EDA <br />and City Council on the utilization of TIF for Heritage Millwork. Motion carried 6-0. Chad <br />Vitzthum abstained. <br /> <br />Mr. O’Neil advised that Chad Vitzthum has had a past banking relationship with HMI and this <br />project and may be considered a non-interested party in this discussion. <br /> <br /> (Nate Ovall joined at 8:12 a.m.) <br /> <br /> The committee discussed potential interest rates for the TIF. <br /> <br />4.3 Open Discussion <br /> <br />Mr. O’Neil asked if the committee would be able to meet outside of the regularly scheduled meeting <br />th <br />to discuss HMI’s loan request prior to the May 20 EDA meeting. <br /> <br />th <br /> The committee was in favor of meeting again on Tuesday, May 14 at 7:30 a.m. <br /> <br />Mr. O’Neil asked the committee for their feedback on the interest rate that is set forth on the policy: <br />3% or 2% below prime, whichever is higher. Staff’s loan discussions with HMI have been built <br />around a 3% interest rate. <br /> <br />The committee was in favor of supporting a 3% interest rate. <br /> <br />5. Motion to Adjourn <br /> <br /> Moved by Gromberg and seconded by Ovall to adjourn the special of the Joint Finance <br />Committee. Motion carried 8-0. <br /> <br />The meeting adjourned at 8:27 a.m. <br /> <br /> <br /> <br /> <br />