6.6. EDSR 01-20-2015 - Laserfiche WebLink

Home Browse Search

Request for Action To Item Number Economic Development Authority 6.6 Agenda Section Meeting Date Prepared by General BusinessJanuary 20, 2015Jeremy Barnhart, Deputy Director, CODD Item Description Reviewed by Stonesthrow Properties, LLC (Coin-Tainer) Jobs Cal Portner, City Administrator Incentives Microloan review Reviewed by Action Requested By resolution, approve a $200,000 Jobs Incentive Microloan for Coin-Tainer/ Stonesthrow and authorize the EDA Chairman and City Attorney to finalize and sign the loan closing documents. Background/Discussion Stonesthrow proposes to use the $200,000 Jobs Incentive Microloan to assist with the contract for deed financing of the building at 17834 Industrial Circle. A major tenant of the building is Coin-Tainer, who shares a common owner with Stonesthrow Companies, Dave Walters. The goal of the Jobs Incentive Microloan program is to encourage the growth of new jobs and the retention of existing jobs. The $200,000 loan will support the long-term investment in the building, ultimately retaining the 26 jobs on site, and adding 10 more jobs in the next two years. In December, the Finance Committee supported the application, but wanted to ensure that five issues were addressed in the final agreements:  That both Coin-Tainer and Stonesthrow maintain responsibility for the loan repayment and job creation.  There must be lease continuity.  City must maintain a subordinate position with the option to take over the Contract for Deed at its discretion in the event of default.  Repayment maintains a 20-year amortization with 5-year balloon payment.  The city must be provided a 6-month notice in the event of a default. Documents to address these issues were developed and are currently being reviewed by Coin-Tainer. Assuming changes requested by Coin-Tainer are non-substantive and agreeable to the City Attorney, staff seeks approval to close without further review by the EDA. We are still waiting on the Contract for Deed document and the Purchase Agreement, to assist with the final development of the documents. A public hearing was held on December 15, 2014, to receive testimony regarding the business subsidy in the form of job incentive microloan. The City Council also held a public hearing on that date. No comments have been received in support or opposition to the request. The EDA directed staff to continue with the preparation of the loan documents, in anticipation of a timely closing in January.