05-11-1992 EDA MIN - Laserfiche WebLink

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EDA Minutes May 11, 1992 Page 2 . a maximum purchase price. He indicated that the qualifying income has been adjusted up to $32,080. He also explained that the EDA's request for higher purchase price limits of $82,500 for existing homes and $90,000 for new construction was denied by the MHFA. Therefore, the existing limits set by the MHFA of $62,000 for existing homes and $72,000 for new homes will remain in place. Bill Rubin informed the EDA that the mortgage funds should be available in mid to late June. COMMISSIONER TRALLE MOVED TO AUTHORIZE THE EXECUTION OF THE ALLOTMENT AGREEMENT AND THE PROGRAM APPLICATION COMMITMENT AGREEMENT AND ALSO TO AUTHORIZE THE 1% REFUNDABLE DEPOSIT FEE AND THE $200 NONREFUNDABLE PROCESSING FEE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 7. Loan Request from Pomeroy Tool, Inc. . Bill Rubin, Economic Development Coordinator, stated that the EDA Finance Committee met to review a request by Pomeroy Tool for a $25,000 loan from the EDA's Revolving Loan Fund. He stated the loan would be used to assist in the construction of an addition to the existing manufacturing facility. Bill explained that the cost for the proposed addition is estimated at $75,000 and indicated that Pomeroy has a commitment from a private lender in the amount of $50,000. The Company is requesting the remaining $25,000 from the City's Revolving Loan Fund. The Finance Committee unanimously recommended approval of the request, subject to a promissory note and personal guarantee from Pomeroy Tool, Inc. Commission Dwyer questioned whether a mortgage filed on the real estate should also be required. Bill Rubin indicated that he did not see a need for filing a mortgage in this situation. COMMISSIONER TRALLE MOVED TO APPROVE A $25,000 LOAN FROM THE REVOLVING LOAN FUND TO POMEROY TOOL, INC. BASED ON THE FINANCE COMMITTEE'S RECOMMENDATION THAT A PROMISSORY NOTE AND PERSONAL GUARANTEE BE SUBMITTED TO THE CITY. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 7-0. 8. Update on EDA Main Street Exclusive option Bill Rubin informed the EDA that Gary Santwire was present to provide an update as to what has taken place in the last 30 days pertaining to the exclusive option which was authorized by the EDA at its April 13, 1992, meeting. Gary Santwire explained that he has received a bid to fill the existing hole in the ground on Main Street for $36,000. . Gary Santwire City. Bill been provided requested access to information for this site from the Rubin informed the EDA that most of the information has to Eos Architecture. Gary Santwire informed the EDA that the developers are considering something on the site that will attract people who are traveling from