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HomeMy WebLinkAbout6.d. Discussion of Revolving Loan ProgramCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION PORT AUTHORITY COMMISSION MEETING DATE: JULY 21, 1992 AGENDA ITEM: DISCUSSION OF REVOLVING LOAN AGENDA SECTION: PROGRAM NEW BUSINESS PREPARED BY: JOHN MILLER, ECONOMIC DEVELOPMENT COORDINATOR AGENDA Nft�MA 60 ATTACHMENTS: MEMORANDUM, MEMO FROM ATTORNEY MILES, ATTACHMENTS FROM SEVERAL CITIES !111&� At the Port Authority's July 7, 1992, meeting the issue of financial help for local businesses was raised. The attached memorandum outlines several aspects of "revolving loan funds". Also attached are loan criteria, application forms, and other information about the program from cities currently offering the incentive. I will briefly present the option to you at the meeting and answer any immediate questions you might have. The actual creation of the fund and finding if it is an appropriate development tool in Rosemount should be discussed further at a work session. RECOMMENDED ACTION: None, informational item only. Optional: Determine meeting date for work session to discuss the revolving loan program. PORT AUTHORITY ACTION: �iiy o��osemouni PHONE (612) 423-4411 2875 - 145th Street West, Rosemount, Minnesota FAX (612) 423-5203 Mailing Address: P.O. Box 510, Rosemount, Minnesota 55068-0510 TO: Port Authority Commissioners Anderson, Dunn, Mawe, McMenomy, Sinnwell, Wippermann FROM: John Miller, Economic Development Coordinator DATE: July 116, 1992 RE: Creation of a Revolving Loan Program t MAYOR Edward B. McMenomy COUNCILMEMBERS Sheila Klassen James (Red) Staats Harry Willcox EdwardsPennis Wippermann ADMINISTRATOR Stephan Jilk 2. Don't make only one or two big loans. Make several small loans. one tiny western Minnesota city ended up owning a USDA approved pizza factory. Again, the loans are most successful as a stimulus to wide-ranging activity and as a means of qualifying people for bank loans. 3. Establish priorities for your loan program. What are you trying to accomplish? Downtown redevelopment? Job creation? Industrial development? 6vergillings (90ming (up Rosemounly 4. Don't get involved in loans for working capital or refinancings of existing debt. 5. Establish criteria for approving or rejecting grant applications. You should never appear to be arbitrary in making loans. 6. Confidentiality of any business's financial condition should be maintained. 7. Try not to establish the loan fund with Federal money. Paper work requirements for local businesses can be demanding, e.g. documentation that people hired qualify as low income personages. Now let's look at the real world. If you're like me you have a morbid curiosity about bad loans. What experiences have these places had? I was surprised. Most cities have no bad loans. Yes, there's the empty pizza factory in western Minnesota but not much else that can be pointed to as a boondoggle. Madelia for example has made 24 loans and only one has gone bad. Hopkins has had no bad loans and I believe Blaine has a perfect record. But there is some risk. As the attached table shows, Madison has been the most active city in the use of its revolving loan program making 42 loans. That city has had two major loans go bad, one to a furniture manufacturer and one to a structural steel business. The problems with the loans appear to have been: * Too big * Applicants politically connected * Poor management skills The steel business was a good example of a loan to a firm with poor management skills. The proprietor was making roof trusses for Pamida stores and selling them for $5,000. Unfortunately, it cost $6,000 to manufacture each one and, no he couldn't make it up in volume (excuse the levity but it is kind of humorous). The serious side of bad loans from revolving loan funds is that "people remember the dogs." The City Administrator in Madison believes the program was responsible for a low vacancy rate on the city's main 'street. Locally, however, the success is little recognized but the bad loans are still widely discussed in the local coffee shops. If the Port Authority does implement a revolving loan program, it should be prepared for the inevitable: * Some bad loans will be made * The bad loans will be remembered In the movie "Grease", the hero John Travolta decides to build a hot car to win the affections of the heroine Olivia Newton -John. As you might remember, there's a long scene where Travolta and his buddies aredancing around the high school shop day -dreaming about the attributes of this soon-to-be car. Finally the obvious question: "Where you gonna git the money? Where you gonna git the money?" Travolta's day dream is ended and he is brought back to reality. For our purposes here let's assume that the Port Authority and council endorse the idea of the revolving loan fund and see it as a worthwhile and needed development tool. How can the program be funded? Here are the options that I've found: 1. Excess Tax Increment - As the name suggests, this funding source uses tax increment received between the time a project's bonds are paid off and the end of eligibility in the district. As the attached table shows, Woodbury and Hopkins both used this method. 2. Community Development Block Grant (CDBG) - Dakota County is designated an "urban county" by the federal government and receives "entitlement" CDBG funding. An agreement between the county and Rosemount allocates a portion of that grant to the city. The most recent CDBG money was allocated to purchasing the Strese property. Apple Valley and Blaine used this source to start their loan programs. 3. State Grants.- No state grants are available to directly start a loan program. However, if the city used a state "Economic Recovery Fund" grant to make a loan to a local business wanting to expand, it can keep the first $100,000 of repaid principal as the start of its revolving loan program. This was done by both Cottonwood and Madelia. No Federal grants are available because of the CDBG funding. 4. Internal Funding - Surpluses in certain city funds can (in some instances) be loaned to the revolving fund. The city of Madison used $500,000 from its utility fund to start its revolving loan program. 5. Private Sources - Woodbury worked with the former Western Life Insurance Company in creating its "Woodbury Growth Fund." The insurance company provided $500,000 for the fund from which it received interest at the prime rate. Certainly any private gifts could be the basis of creating the fund. 6. Sale of Property - Any excess real property owned by the Port Authority could be sold. The money received could capitalize the loan fund. Finally, you may want to ask, "Is this legal?" Attached please find a memorandu� from City Attorney, Mike miles addressing that issue. In the attorney's opinion, the Port Authority can create and operate a revolving loan fund. Now for some opinion. Is the revolving loan fund an implementation tool the Port Authority should consider? Well, the loan fund can serve three purposes: 1. Provide gap financing to businesses wishing to expand or relocate. 2. Advance city development policies and goals by providing the financial enticement needed to stimulate and direct the private sector, e.g. promotion of downtown redevelopment or creation of an expanded manufacturing sector. 3. Prevent the free -lunch syndrome. In other places I've worked, some sectors of the local economy at times have come to expect the HRA or EDA or City Hall to give them free money. By implementing a revolving loan program, the Port Authority would be showing its desire to work with all local businesses but demonstrating that it's not a Santa Claus. Recommended Action: Discuss the creation of the loan fund at a special meeting. I can bring in some people who have worked with these to give you first hand accounts of their operation. Revolving Loan Programs Place Population Fund Source Established Loans Int. Rate Minimum Eligible Total Maximum Cottonwood 982 100,000 ERF Grant 1990 8 5.5-8% 3,000/11,500 Non-Competive Business Madison 1951---- 500,000 Utility Fund 1984 42 Prime None Industrial/job- Creation/Some Retail Madelia 2237 150,000 ERF Grant 1987 24 6% 2,000/15,000 Job Creation Hopkins 16534 Varies TIF Varies 20 3-6% 2,000/50,000 Retail Renovation Woodbury 20075 1,000,000 TIF/Western Life 1990 2 Below Prime N/A High Technology Apple Valley 34598 250,000 CDBG 1991 0 Below Prime N/A Leverage Private Blaine 1 38975 1 7509000 CDBG 1 1983 1 20 1 3-101/2% 10% of Project Industrial MEMORANDUM TO: JOHN'MILLER ECONOMIC DEVELOPMENT COORDINATOR CITY,OF ROSEMOUNT FROM: MIRE, MILES / DATE: July 10, 199 RE: ROSEMOUNT PORT AUTHORITY REVOLVING LOAN FUND POWERS You have inquired as to whether or not the Rosemount Port Authority may establish ',a revolving loan fund in order to facilitate its interaction with the business community. In response to your question, I have examined the laws authorizing the City to create a Port Authority (Minn. Stat. §469.0813; 469.049; etc. ) and find no specific reference to the issue of revolving loan funds. However, it is my view'', that the general powers given to Port Authorities under the .above referenced statutes are sufficiently broad so as to allow the Rosemount Port Authority to create and maintain a revolving loan fund. If you have any questions regarding this advice please contact me. ���• •o, cmrOF #t W60 ury G MAID GOP ECONOMIC DEVELOPMENT AUTHORITY THE WOODBURY GROWTH FUND A SOLID INVESTMENT The Woodbury Growth Fund is a financing mechanism created by the Woodbury Economic Development Authority (EDA). The purpose of the fund is to provide low interest, long term financing to assist businesses interested in expanding in Woodbury. By creating more job opportunities through business development the overall quality -of - life for Woodbury citizens will be improved. The Growth Fund makes affordable capital available for business expansion. The Fund fills the gap between available and needed financial resources. Private lending institu- tions recognize that businesses need financing to survive. Quite often, lenders seek partners to share the financial risk of funding business expansions. The Woodbury Growth Fund serves the role of being a partner with the private lender as well as the business in need of financing. The end result is more job opportunities in Woodbury and a higherlevel of investment in the community. Funding for the Woodbury Growth Fund is provided by the City of Woodbury and Western Life. The Fund is administered by the Woodbury EDA and was created with the in- tention of assisting small businesses primarily by providing financial assistance for growth and expansion. HOW THE GROWTH FUND WORKS Loans from the Growth Fund are provided to "For Profit Firms" with the goal of promoting economic development and job creation and expansion of the local tax base. The result is a positive impact on the entire community. Here are some general guidelines: • Loans may vary in size from $5,000 to $200,000. Private Fenders must provide at least 50 percent of the financing for the project. • Financing derived through the Woodbury Growth Fund may be used for financing fixed assets only. Eligible project costs include land, land improvements, the purchase or remodeling of an existing building, building construction, and the acquisition of machinery and equipment. Below is an example of how the growth fund may assist a typical project. xyz c m"ov Sou AMQU-nl awg Eaymm Bank $250,000 10% $2,413 Growth Fund 200,000 6% 1,433 Small Business 50:000 Nle ------- Total Loan $450,000 8.2% $3,846 Total $500,000 Savings to business annually: $6,000 Call the Community Development Director for current rates (731-5790). ELIGIBILITY REQUIREMENTS ' Many businesses are eligible for funding through the program. Firms engaged in the following types of activity are eligible: • Construction • Transportation and Warehousing_ • Communication • Wholesale Trade • Developer Assistance • Manufacturing Ineligible projects include: • Retail Businesses • Nonprofit Institutions • Gambling Organizations • Lending or Investment Organizations • Land Held Primarily for Sale or Investment The proceeds from the Woodbury Growth Fund maynot be used forworking capital or to refinance prior obligations of the small business. THE WOODBURY GROWTH FUND PROVIDES YOU WITH THESE ADVANTAGES Low interest - long term financing Affordable capital for long term expansion A partner',to share the financial risk Up to $200,000 available Greater return on equity OW TO APPLY )plication forms are available from the .)mmunity Development Department of the Y of Woodbury and from Woodbury area iders. Applications are reviewed by the and of Directors of the Woodbury Dnomic Development Authority. ecessary, applicants will be referred to odbury's Economic Development isultant for help in preparing the loan ,lication. They can also help in the areas usiness planning, financial management marketing. more inform8tion, please contact: Community Development Director City''of Woodbury 8301 Valley Creek Road Woodbury, MN 55125 (61 2) 731-5790 • TO: JOHN MILLER ECONOMIC DEVELOPMENT COORDINATOR CITY OF ROSEMOUNT FROM: MIKE MILES.", DATE: July 10, 199 RE: ROSEMOUNT PORT AUTHORITY REVOLVING LOAN FUND POWERS You have inquired as to whether or not the Rosemount Port Authority may establish a: revolving loan fund in order to facilitate its interaction with the business community. In response to your question, I have examined the laws authorizing the City to create a Port Authority (Minn. Stat. §469.0813; 469.049; etc.) and find no specific reference to the issue of revolving loan funds. However, it is my view that the general powers given to Port Authorities under the above referenced statutes are sufficiently broad so as to allow the Rosemount Port Authority to create and maintain a revolving loan fund. If you have any questions regarding this advice please contact me. Ll CITY OF MADISON July 9, 1992 E 404 6th Avenue 0 Madison, Minnesota 56256 0 612-598-7373 N Fax No. 612-598-7376 Mr. John Miller Economic Development Director City of Rosemount P.O. Box 510 Rosemount, MN 55068 Dear Mr. Miller: It was a pleasure speaking with you today about your interest in establishing a local revolving loan fund. Enclosed is a synopsis of the Madison EDA Loan Fund as well as the Southwest Minnesota Initiative Fund Loan Program Guidelines. If you have any questions after you have reviewed this information, please let me know. Sincerely, Q o -g 1 as F. Bunkers City Administr ator DFB/ef Enclosures n cif' SOUTHWEST MINNESOTA INITIATIVE FUND The Volsteall House 163 Ninth Avenue Granite Falls, MN 56241 612.564-3060 IN PARTNERSHIP WITH THE STATE OF MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT CHALLENGE GRANT PROGRAM LOAN PROGRAM GUIDELINES MISSION Believing in the values and future of our rural community, the Southwest Minnesota Initiative Fund combines resources and ideas to strengthen the eighteen counties of Southwest Minnesota. The Initiative ',Fund supports innovative projects that enable local people to pursue ideas that will help a neighbor, strengthen communities, diversify the local economy, or build leadership and confidence. We are inspired by our neighbors who have the initiative to build the neighborhood of Southwest Minnesota. Specifically, the Initiative Fund directs its efforts and grant and loan funds to achieve the following: Diversify the regional economy, bringing stability and income to rural citizens.' Develop community and regional leaders who serve as advocates for regional confidence and progress. Support ihdividuals and organizations assisting our neighbors in need. Encourage;, working partnerships among people, communities and organizations that develop a sense of regional unity and identity. Revised 8/90 A Partnership of Resources and Ideas to Strengthen Southwest Minnesota. Big Slone • Chippewa • CoNnmwoo> l • Jackson • KandiyAi • tac Qui hArk • Lincoln • Lyon • Nkt-tod • Mecker • Murray • Nobles • t5pesl ne • Redwood • Renville • Ruck • Swift • Yellow Medicine The Southwest Minnesota Initiative Fund will consider loans to start up or expansion businesses that will create employment by generating new wealth and diversifying the economy of its service region. The region includes the eighteen counties of Big', Stone, Chippewa, Cottonwood, Jackson, Kandiyohi, Lac Qui Parle, Lincoln, Lyon,, McLeod, Meeker, Murray, Nobles, Pipestone; Redwood, Renville, Rock, Swift, and Yellow Medicine. To augment the ',funds available in its loan program and to increase its ability to achieve it's goals, the Initiative Fund is coordinating the State of Minnesota's Challenge Grant Program for Southwest Minnesota. The Challenge Grant Program was conceived as an innovative system to provide loans to businesses and promote economic development in rural Minnesota. The decentralization of this State Program to the regional level•provides local decision making about locally established priorities. To accomplish these development responsibilities, $6,000,000 of Challenge Grant funds are available to establish regional revolving loan funds in six rural regions. Because of its proven ability to run a grassroots development program responsive to ,the needs of Southwest Minnesota and its ability to provide the necessary private dollar match for the State funds, the Southwest Minnesota Initiative Fund is able to add $1,000,000 of these Challenge Grant funds to its loan program resources. LOAN CRITERIA AND DEFINITIONS 1) ELIGIBILITY: Eligible businesses may be either start-ups or expansion projects. The'type of businesses include, but are not limited to, those engaged in: - Technologically innovative industries - Value added manufacturing - Agriprocessing - Information industries - Agricultural marketing - Tourism Loan funds are NOT available for the following activities or businesses: Retail development projects. (This does not include a present retail business with a project that will create new wealth for the region.) - Agricultural production/livestock loans. Companies relocating within Minnesota, unless the move is needed to retain or increase jobs within the region. Loans to city or governmental units. Loans to development corporations. rojects for which financing is available for reasonable terms rom other sources. Projects that cannot demonstrate a reasonable chance of success. 2) Loan Interest and Terms: - Interest ''rate will be between 5% and 7% for the first three years. Maximum Initiative Fund loan is $50,000. Initiative Fund loan cannot exceed 50% of the total project cost. (Refer to PrivateInvestment requirement for additional information.) - The loan will have a 3 year term with a balloon payment. The payments may be amortized up to 10 years depending on the use of the funds and analysis of repayment capability. - Initiative Fund's interest in any collateral can be subordinated to private lenders.', 3) Grassroots Support: A business applying for a loan must show community support by obtaining a resolution of support from its local governmental unit. This resolution need not be obtained for the submission of the enclosed preliminary application. Obtaining such a resolution is generally an easy process; please call the Initiative Fund if you have questions about the process. Applicants strengthen their request whenever other evidence of local community support is provided. 4) Eligible Uses of Loan Funds: All costs demonstrated as essential for the project, including working capital, machinery and equipment, land and building acquisition, and renovation are eligible for a loan. Generally, funds for refinancing existing debts are ineligible. 5) Private Investment• An approved loan from the Initiative Fund must be matched by an equal amount of private funds invested or loaned to the company. To serve as a bonafide match, these private funds cannot be invested or loaned before applying to the InitiativeFund. These private dollars can include equity, SBA loan guaranty funds, industrial development bonds, bank loans, or investment from private citizens. Private investment funds do not include funds from governmental units. b) Job Creation: While not a strict requirement, the Initiative Fund prefers that one job be created 'for every $15,000 of its loan proceeds. The jobs should principally benefit low income,people by providing full time employment for them. Generally, all businesses that have applied to the Initiative Fund and that fit the other eligibility requirements, have, easily met these job creation requirements. 7) Financing Gan: Loans can only be made to businesses that can substantiate a financing need due',to the following conditions: Inadequate equity by the owners of the business. Inadequate private lender financing. Inability to pay market interest rates or term requirements. 8) Business Planning: A business should have some expertise in or should have assistance with product development, marketing, and management. If assistance is needed, applicants', can find support from available business development professionals such as the state's'', business finance specialists, regional development commission staff, community development personnel, or small business development consultants. Contact the Initiative Fund iflyou are unsure about how to contact these resources. APPLICATION PROCEDURES, Applicants are encouraged to call or visit the Initiative Fund at an early stage in project development to discuss the feasibility of support for their projects. Initiative Fund program staff will endeavor to provide an indication of the potential eligibility of the project, and to, suggest factors which should be considered to maximize the potential for developing a viable proposal. All applicants must submit the attached preliminary application in order to initiate formal consideration of their project. APPLICANTS MUST USE THE ATTACHED PRELIMINARY APPLICATION FORMS AND PERSONAL NET WORTH STATEMENTS. Submission of other forms or of incomplete information will result in a return of .the materials - to the applicant. Existing business applicants should attach current business financial statements. Preliminary applications are reviewed on a weekly basis by the staff. We encourage applicants to submit the materials as early as possible in the development of the project. Staff will contact an applicant within 10 days of submitting an accurate preliminary application to discuss the details of the project. Upon review by staff, eligible preliminary applications will be asked to submit a full final application. Applicants should not assume any funding commitment if the Initiative Fund provides technical assistance or requests a full proposal. Guidelines and forms for full proposals will be sent to those applicants receiving approval. Full proposals are generally reviewed by a Citizen Advisory Committee and the Initiative Fund Board of Directors on a monthly basis. If a full proposal is invited, it must be received approximately one month prior to the monthly Board review to be considered for funding. The Initiative Fund's available resources will limit the number of final proposals that can be funded. Initiative Fund staff Persons with questions submission are invited welcome preliminary inquiries from prospective applicants. about policies and procedures, funding interests, or proposal to contact: Loan Program Manager Southwest Minnesota Initiative Fund The Volstead House 163 Ninth Avenue Granite Falls, MN 56241 612/564-3060 4 SWMIF Office Use Only Date Rec'd STATE OF MINNESOTA IN PARTNERSHIP WITH SOUTHWEST MINNESOTA INITIATIVE FUND "CHALLENGE GRANT" LOAN PROGRAM PRELIMINARY APPLICATION I. BASIC INFORMATION Name of Business _- Address CityCounty Zip Contact Person Telephone ( ) Social Security 41 (if business is a sole proprietorship) II. DESCRIPTION OF PROJECT FOR WHICH FINANCING IS REQUESTED New Business (attach additional pages if necessary) Expansion III. TYPE OF BUSINESS' Sole Proprietorship Corporation Partnership Brief description of the business the applicant is engaged in: IV: LOAN REQUEST Challenge Grant Loan requested $ Total Cost of Project ':$ Result of requested Challenge Grant loan: Existing Jobs Jobs to be Created Retained • 1 V. Purpose and Source for Total Project Cost PURPOSE FOR WHICH CHALLENGE FUNDS TO BE USED GRANT LOAN BANK(S),. BANKS EQUITY Property Acquis. $ $ $ $ Site Improvement Building Renovation New Construction Machinery and Equipment Working Capital Inventory Debt Refinancing Other (Specify) Other (Specify) TOTAL (SPECIFY) (SPECIFY) OTHER OTHER TOTAL $ $ $ .TOTAL PROJECT COST $ Participating Lender Contact Person Telephone # Participating Lender ,Contact Person Telephone # AuthorizedSignature Date ------------------------------ ---------------------- --- - ------------- -- (for Initiative Fund use only) INITIATIVE FUND ACTION TAKEN, AND EXPLANATION FOR ACTION: ut orize d Signature Date ROB IJ54-(1-2) ' I TO TYPE OF CREDIT — CHECK THE APPROPRIATE BOX (Nome of tender) QIndividual — It you check this box, provide Financia) Information only about yourself. Joint, with Relationship If you check this box, provide Financial Information about yourself and the other person. PERSONAL FINANCIAL STATEMENT OF NOTE: Any willful misrepresentation could result in a violation of Federol Low (Sec. 18 U.S.C. 1014) Birth 19 Nome Dote L ---19 Stotement Date Address City State/Zip Social Sec. No Home Phone No. of Dependents Bus. or Occupation Bus. Phone NOTE: Complete all of Section 11 BEFORE Section 1 SECTION I ASSETS (t,,,,v -- c.... I LIABILITIES I Cash On Nand & in honks 2 Cosh Value of Life Insurance Sec. II -A Sec. 11-B 21 Notes e to Banks 22 Notes Due to Relatives & Friends - Sec. It -H 3 U.S. Gov. Securities Sec, 11-C 23 Notes Due to Others Sec. 11-H 4 Other Marketable Securities Sec. 11-C 24 Accounts & Bills Payable Sec. 11-H ' 5 Notes & Accounts Receivable - Good Sec. 11-D 25 Unpaid Income Taxes Due - ❑ Federal ❑ State 6 Other Assets Readily Convertible to Cosh - Itemize 26 Other Unpaid Taxes & Interest Other Expenses 7 27 loons on Life Insurance Policies Sec. 11-B g j 28 Contract Accounts Payable_ Sec. 11-H 9 TOTAL 29 Cosh Rent Owed 10 TOTAL CURRENT ASSETS 30 Other Liabilities Due within 1 Year - Itemize 11 Real Estate Owned Sec. 11-E 31 12 Moitgoges & Contracts Owned Sec. 11-F 32 13 Notes & Accounts Receivable - Doubtful Sec. II -D 33 TOTAL CURRENT LIABILITIES 14 Notes Due From Relatives'& Friends Sec. 11-0 34 Real Estate Mortgages Payable Sec, ll -E 15 Other Securities - Not Reod;ly Marketable Sec. 11-C 35 Liens & Assessments Payable 16 Personol Property Sec. 11-G 36 Other Debts - Itemize 17 Other Assets - Itemize 37 18 38 Total Liabilities 19 39 Net Worth (Total Assets minus Total Liabilities) 20 TOTAL ASSETS 40 TOTAL LIABILITIES & NET WORTH ANNUAL INCOME On Deposit Notes Due Banks COLLATERAL (If Any) & Type of Ownership ESTIMATE OF ANNUAL EXPENSES Salary, Bonuses & Commissions S Income Taxes S Dividends & Interest S Other Taxes $ Rental & Lease Income (Net) S Insurance Premiums 1 Alimony, child support, ot separate maintenance Income need not 6e revealed if you do not swish to have it considered as a bode for repaying this obligation. Other Income—Itemize S Mortgage Payments S Rent Payable S Provide the following information only if Joint Credit is checked above. Other Persons Salary, Bonuses & Commissions S Other Expenses S S Alimony, child support, or separate maintenance income need not k revealed if you do not a6h to have it considered as a boils far repaying this obligation. Other Income of Other Person—lternize S j S TOTAL S TOTAL S GENERAL INFORMATION CONTINGENT LIA61UTIES Are any Assets Pled ed? ❑ No ❑ Yes (See Section 11) ' As Endorser Co-moker or Guarantor S Are you a Defendant in onX Suitsor Legal Actions? ❑ No ❑ Yes On leases or Contracts S (Explain); Legal Claims 1 Have you ever been declared Bankrupt in the lost 14 years? ONo OYes Federal - State Intone Taxes S (Exploin): Other - S SECTION If A rAeu IN RAWICG AN11 NnTGP. niff T17 HANKS (Lint all Real Estate Loans in Section II -E) NAME OF BANK Type of Account Type of Ownership On Deposit Notes Due Banks COLLATERAL (If Any) & Type of Ownership S S , Cash on Hand (Complete Rest of Section 11 on Reverse Side) TOTALS S aaw.�s.o r•uauaw«a co.. «cw set«, «r«« - S i rttsao ' SECTION I I Continued $ LIFE INSURANCE :fist only those Policies that you own) COMPANY Face of Cosh Surrender. Policy Value Policytoonfrom Other loons I BENEFICIARY insurance Co. Policy 01C011019 S S S S $ Is IS is TOTALS C SECURITIES OWNED (Including U.S. Gov't Bonds and all other Stocks and Bonds) FaceVolue-Bonds DESCRIPTION Type of Market Value Market Value ,Al.try+la AmountPledge4 No. of Sh«es Stock Indicate thou Not Registered in Your Name Ownership COST U.S. Gov, Sec. M'ktoble Sec. -ro uCuci� w+ to Secure loon S TOTALS S S S tt-.,- s«. I t:- 11 (t—s-.. r w -1 D NOTES AND ACCOUNTS RECEIVABLE (Money Payable or Owed to You Individually - Indicate by a ✓ if Others have an Ownership Inter*% MAKER/DEBTOR A. -When Due Original Am't Balance Due Balance Due Bol. Due Notes od SECURITY (if Any) Go" oAccounts Doubtful Accts Rel, b Friends S S S S i i t TOTALSIS S Is i It.. s--. I w 51 it.— s--. t U.. 111 (t -w 1— 1 U.. Itl - E REAL ESTATE OWNED !Indicate by a ✓ if Others have an Ownership Interest) Dote Original PresentVolue Amount of MORTGAGE OR CONTRACT PAYABLE TITLE IN NAME OF Y Description & Location Acquired Cost of Real Estate I Ins. Carried Bol. Due I Payment Maturity To Whom PoXoble ;E Homestead- S S r TOTALS TOTALS J tr.... s... 1 ts.. ul(s-r• s... I w stt F MORTGAGES AND CONTRACTS OWNED (Indicate by a ✓ if Others have an Ownership Interest) MAKER Cont- Mtge. ✓ Name Address Storting Payment Maturity PROPERTY COVERED Dote yrn Y Bolonce Due S S TOTAL IS G PERSONAL PROPERTY (Indicate by a ✓ if Others have an Ownership interests (6.. -s -..I u--ut Pa— DESCRIPTION ✓ Date Cost Val"; LOANS ON PROPERTY When New When New Y Bolonce Due o W e Automobiles- S S $ TOTAL S • It— f.+. 1 U-. 141 N NOTES Other than Bank, Mort ago and Insurance Company Loans l ACCOUNTS AND BILLS AND CONTRACTS PAYABLE PAYABLE TO Other Obli «s Notes Due To NotesDue'Others' Accounts 6 Bills Contracts COLLATERAL (If Any) (If An When Dt/e Rel. G Friends Not Books Payable Pa able S TOTALS IS I i it-.-- 1...1 u.. 211 (r-- s... I W 211 tt-I.• f.. I W Us it -.w s--. 1 lot j For the purpose of procuring credit from time to time, (/We furnish the foregoing as a true and accurate statement of my/our financial condition. Authorization is hereby given to the Lender to verify in any manner it deems appropriate any and oil items indicated on this statement. Theunder- signed also agrees to notify the Lender immediately in writing of any significant adverse change in such financial condition, Dote"Sinned - - - - - ,-19 _ Sinnoture— - -- -- ----- -- ---- Signature REVOLVING LOAN FUND GUIDELINES 1. TYPE OF USINESS: A. MANUFACTURING B. PROCESSING C. RETAII ING 2. USE OFFUNDS: A. REAL, ESTATE B. MACINERY & EQUIPMENT C. WOR ING CAPITAL 3. JOB CREATION OR RETENTION: A. $20,000 per job 4. FINANCI G: A. Loaln funds should be used as a "financing gap" tied to conventional lending programs 5 REFINANCING: A. Loan funds shall not be used to refinance existing debt. 6. NON-MA14UFACTURING LOANS: A. Non -manufacturing loans shall be limited to fixed assets financing TERMS AND -CONDITIONS: 1. TYPE OF LOAN a. Direct Companion, participation Revolving Loan Guidelines Page 2 ------------------------- 2. FEES a. A service fee of .5% will be snonsibility of the ilt into each nbusiness closing costs shall be the re receiving the loan. 3. LIMITATIONS a. Dollar amounts 1. Minimum $5,000 2. Maximum $100,000 3. In general should not exceed regulated lendor.s' loan b. Percent of total project: 1. 40% recommended, in certain circumstances up to a maximum limit 50% dictated by jobs created and capital investment. 2. Should not exceed regulated lendor's exposure 3. In projects which also qualify for other government and SVTMIF financing programs, the RLF may participate in an equal pro rata basis with the respective agencies and organizations which become lenders in the deal. RLF participation, however, shall remain subject to the limitations outlined above. C. Cost Per Job: 1.Should not exceed $20,000 4. INTEREST RATE a. An interest rate is established which is related to the term of the loan and the New York Prime. b. Term - 0 to 2 years, 40% of prime Term - 2 to 5 years, 50% of prime 5. EQUITY! REQUIREMENTS a. Minimum 4:1 equity ratio ( 20% ) b. Minimum of 10% equity cash injection regardless of debt to equity. Revolving Loan Guidelines Page 3 ------------------------- 6. Local Financial Institutions should take the lead in determining credit worthiness of each deal. 7. LIEN POSITION a. Preferably shared or subordinated to second position 8 CREDIT LIFE INSURANCE POLICY: a. Shall be the responsibility of the loan recipient to obtain and maintain a credit life insurance policy in an amount equal to the principle and interest of the loan, naming the revolving loan fund as beneficiary. To be in force for the term of the loan. 9. LETTERSOF COMMITMENT: a. Commitments from other lenders must be in place and letters of commitment received by Madison Economic Authority prior to action on final loan applicant. REQUIRED DOCUMENTATION: 1. A completed business plan must be submitted to the City Adminisfator prior to consideration as a part of the loan application. 2. Financial documents a. Balance sheet last three ( 3 ) years and current year and two --year projection. b. Profit and loss statement last three ( 3 ) years and current year and two-year projection. c. Monthly cash flow analysis for next 24 months d. Signed personal financial statements of all principles with a significant financial interest in the business. Any financial documentation outside three ( 3 ) months is deemed to be non-current and an interim financial statement will be required. Revolving Loan Guidelines Page 4 APPLICATION PROCEDURES: 1. Qualified applicants must obtain application forms from the City Administrator's office. 2. Completed applications and supporting documents must be submitted to the City Administrator. 3. Prior to review by the Madison Economic Development Authority, the loan application shall first be reviewed, by the Madison Business Development Corporation. A recommendation from the MBDC shall accompany said application, along with a written business flan. 4. The loan application shall be filed with the City Administrator after initial review by the MBDC. If a favorable recommendation accompanies that application, the City Administrator shall advise the MEDA board president of the application and a meeting of the MEDA shall be called. The MEDA board shall be presented to the MEDA board within ten ( 10') days of such filing of a meeting of the MEDA has been called at the time of the application filing. If such meeting falls within said ten day period. 5. MEDA board may accept/reject a loan application or may table action on said application with request for more information. Final action on loan applications shall take place no more than thirty ( 30 ) days from the date the loan application is filed with the City Administrator.. If action on a loan application is tabled with a request for more information, final action on the loan application shall be within thirty ( 30 ) days receipt by the MEDA board of ,the requested information. 6. The City Administrator shall provide written notice of the results of MEDA action to applicants. S I. APPLE VALLEY SMALL BUSINESS REVOLVING LOAN FUND PROGRAM GUIDELINES Adopted: 10-25-90 Editorial Revisions: 4-3-92 Revised Income Table: 6-2-92 OBJECTIVES: The purpose of the small business Revolving Loan Fund (RLF) is to: 1) Foster the creation or retention of jobs for persons from low and moderate income households. 2) Encourage entrepreneurial efforts within the City. 3) Encourage investment in properties which the City has targeted for development or redevelopment. ADNUNISTRATION:' Participation Agreement: An agreement between the participating private lending institution and', the Dakota County Housing Redevelopment Authority (HRA) shall be established. The agreement shall provide for the complete loan package to be disbursed and serviced by the private lending institution. The agreement shall detail the division of lresponsibilities, cost sharing, approval sign -offs, liquidation procedure, legal remedies,,. remittance of RLF portion of loan payments to the HRA, and other pertinent issues. Preapplication:'' The Apple Valley Economic Development Authority (EDA) must provide a resolution of support prior to the approval of any loan by the HRA. The FDA's review shall be limited to a determination of the proposed business's activity being in conformance with local land use regulations and the City's economic development goals. Final application: Completed standardized forms, based on a Small Business Administration' 504 model, must be submitted to the private lending institution. The application must include a business plan and business pro forma. Assistance in preparing a business plan and pro forma may be obtained at the Dakota County Technical College Small Business Development Center. The application shall be reviewed by both the private lending institution and the HRA. Waiver of RLF, program guidelines: Federalequirements - no waivers are permitted. Local requirements - may be waived by the EDA. Waivers to local loan criteria shall be considered only under extraordinary circumstances. Any loan granted a waiver'shall also be ranked as a second priority loan and will be funded only after all other loans meeting the criteria are funded (if funds are available). Reuse of Funds: As the portion of loans attributable to the RLF program are paid off and remitted to the HRA, they will be made available for new small business loans. 1 ANALYSIS: Using standard banking criteria, the private lending institution shall determine if the application demonstrates a fiscally sound loan proposal. A business pro forma provided by the applicant must demonstrate that the business proposal is not feasible using 100% market rate private financing. The extent to which RLF funds are used and the specific loan terms for their repayment must meet the "necessary or appropriate" test established for Community Development Block Grant (CDBG) economic development activities. The HRA shall review the analysis to confirm compliance with these requirements. ELIGIBLE USES OF FUNDS: All forms of small commercial or industrial enterprises are eligible to apply for the loan program. Permitted expenditures of the portion of loan proceeds funded from the private lending institution shall be determined by said institution. Permitted expenditures of the portion of loan proceeds funded from the RLF are subject to the following conditions: Permitted Expenditures Building construction or remodeling. Capital equipment (generally, equipment eligible for 10 year depreciation under IRS rules). Land or building acquisition. Lease -hold improvements. Prohibited Expenditures Movable fixtures, equipment, furniture, or personal property. Refinancing of existing loans. Rolling stock (cars, trucks, etc.). Working capital. EQUITY: The business owner shall raise at least 10% of the total amount of funds necessary for the specific business activity listed in the application from personal assets or through other equity participant(s). All equity amounts listed in the loan application must be demonstrated to be the exclusive property of the applicant and not borrowed. LOAN AMOUNTS: Of the total amount of funds necessary for the specific business activity listed in the application, no more than 40% shall be obtained from RLF proceeds. The balance of the funds necessary for the business activity shall either be made up of the loan proceeds funded from the private lending institution or raised from sources other than the RLF. Loans from the RLF shall be made in the amount of $10,000.00 per permanent full-time job (or equivalent part-time jobs) to be created or retained. The minimum RLF loan amount to any one business shall be $10,000.00 and the maximum amount shall be $50,000.00. 2 LLATERAL: The real property or capital equipment purchased with the loan proceeds shall be pledged as collateral' for repayment. The applicant may also be required to provide a personal note or guarantee as additional collateral. A secondary lien position is permissible for the portion of the loan proceeds originating from the RLF; such a secondary position is not permissible to' a private note from the business owner or other equity participant. When RLF loans are made in conjunction with Small Business Administration (SBA) loans, the RLF loan may be placed in a junior lien position to the SBA loan. TERMS: Terms of the loan shall be structured to provide no more subsidy to the business than is necessary to meet the pro forma business plan. Length: The term shall be established in accordance with generally accepted lending principles and shall not exceed the useful or depreciated life of capital equipment or lease -hold improvements financed. The loan shall be called if the business relocates outside of the boundaries of the City or if the required job creation does not occur within 2 years of the loan closing Equal or balloon principal payments: Equal principal payments shall be the preferred schedule. Balloon payments may be used when necessary to accommodate cash flow projections in accordance with the pro forma business plan. In no case shall a balloon payment schedule be established wherein the useful or depreciated life of the financed equipment results in an undercollateralized loan. Interest rate: Not less than the rate necessary to create a "blended" rate of 1% beneath New York prime for the total combined private lending institution and RLF loans necessary for the specific business activity listed in the application. A variable private lending institution rate may be offset by a variable RLF rate floating in the opposite direction. Origination fees: none for the RLF portion of the loan. JOB CREATION/RETENTION: At least 51% of all jobs created or retained by the business from the $10,000.00 per job RLF loan proceeds must be made available to persons residing in low or moderate income households for at least two years following the loan closing. Special skills must not be a prerequisite for these jobs, other than a high school education. Any skills necessary to perform the jobs must be provided through on-the-job training. Documentation by the assisted business shall be maintained and is subject to audit. Any job hires resulting from referrals from a Job Training Partnership Act (JTPA) agency shall be deemed to satisfy the low/moderate income qualifications without further investigative documentation. EXHIBIT BENEFIT TO LOW AND MODERATE INCOME HOUSEHOLDS The economic development revolving loan program will assist in the financing of small business enterprises which will employ persons residing in households having a gross annual income of no more than 80% of the median income of the Twin Cities Metropolitan Statistical Area (see annually adjusted income table below). The program requirements provide that at least 51% of the jobs created or retained with monies originating from the revolving loan fund must be available to persons residing in such qualifying households. The jobs to be created or retained must not require that applicants have special training or skills beyond a high school education as a condition of employment, unless on-the-job training is provided by the employer. HOUSEHOLD ANNUAL INCOME TABLE (1992) Household Size Income (80% of Median) 1 $27000 2 $30,900 3 $34,750 4 $38,600 5 $41,700 6 $44,800 7 $47,850 8 $50,950 APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA -91-2 A RESOLUTION ESTABLISHING GUIDELINES FOR APPROVAL OF REVOLVING LOAN FUND APPLICANTS WHEREAS, theCity of Apple Valley, in association with the Dakota County Housing a d Redevelopment Authority, has made available monies in a revolving loan fund (RLF) through the Community Development Block Grant (CDBG) program in order to foster employment of persons residing in low` and moderate income households through the assistance of new or expanding business enterprises located in thb City, and WHEREAS, approval of the use of said monies requires a finding by the Apple Valley Economic Development Authority that the applicant business enterprise is in conformance with the City's land use regulations and economic development goals, said formal finding to be in the form of a "Resolution of Support". NOW, THEREFORE, BE IT RESOLVED,by the Board of Commissioners of the Apple Valley Economic Development Authority that the following criteria be used in order to: offer a "Resolution of Support" for an applicant business enterprise for use of CDBG RLF monies: 1. The applicant business enterprise is or will be located on premises' which is properly designated on the Comprehensive Land Use Guide Plan for the use. 2. The applicant business enterprise is or will be located on premises which is properly zoned for the use. 3. The applicant business enterprise is not or will not be located on substandard, conforming premises, as defined by the zoning regulations, unless the purpose of the monies is to improve the premises to bring them into full compliance. 4. The applicant business enterprise is consistent with adopted economi& development goals and policies. 5. The applicant business enterprise is not engaged in an operation inconsistent with community values or morals. 6.• The applicant business enterprise is not of a nature which renders it incompatible with adjacent uses or which conducts its operations in a manner having nuisance characteristics. ADOPTED this 31st day of January, 1991. —;L �L o-1— William F. Holton, President ATTEST; 0 Mary E. VVeller,', Secretary ECONOMIC DEVELOPMENT REVOLVING LOAN FUND PARTICPATING LENDERS First Bank Apple Valley 15025 Garrett Avenue Apple Valley, Minnesota 55124 432.0663 Firstar Bank Eagan 3900 Sibley Memorial Highway Eagan, Minnesota 55122 686-0487 First Federal Savings and Loan 14994 Glazier Avenue'. Apple Valley, Minnesota 55124 432-6840 Midway National Bank 14300 Nicoliet Court Burnsville, Minnesota 55337 892-5585 TCF 7520 149th Street West Apple Valley, Minnesota 55124 823-2265 Marquette Bank Apples Valley 14801 Glazier Avenue' Apple Valley, Minnesota 55124 432-2000 Dakota County Housing & Redevelopment 'Authority 2496 - 145th Street West Rosemount, Minnesota 55068 423-4800 Ms. Sandra Lipsey - President Ms. Gina Gustafson - Commercial loans Mr. Mike Larkin - President Mr. Gary Manney - Commercial loans Mr. Pat Lenertz Mr. Art Nelson - Vice President/Regional Manager Mr. Gary Kluthe - Commercial loans Mr. Greg Bethke Ms. Jeri Slinger - President Mr. Greg Hilding - Commercial loans Mr. Thomas Rybak Commercial loans Ms. Kari Gill - Deputy Director Ms. Diane Nordquist - Project Manager CrNZe- pS'oalCl/ f r�� �4-1-92 H O P K I N S COMMERCIAL REHABILITATION LOW INTEREST LOAN PROGRAM The Hopkins Housing and Redevelopment Authority (HRA) has below market interest rate funding available to encourage building renova- tion and to improve the overall appearance of commercial buildings within the downtown area. e Cz W L 0 E P, W 0 Q, Ln C::c a� O O 4 v o C U) 0-0 C:X LL O O N � � O U X(6 a)U) X C O CO O m Q. C - c 0 i .E T i C: 0 to 0 _-0C W Q (n (o E O C L 0 �i C (n M O 0) d ro a� _ (� p co o O N E O N 0 � i WHO'S ELIGIBLE N T C r E OCO 0 - N O O a O -0 The emphasis of this program is to facilitate Y `° O the renovation of exterior facades including O building cleaning, painting, sandblasting, signage, use of colors, and window replace- ment. -Funding is also available for -interior renovations. T • The building must be located within the o E o 0 E City of Hopkins Commercial Rehab pro- o a, o 0) - ject boundaries (see rrnap). LO CO Q O .- s a O a O M C7• The applicant must be lOCated in a small or :D 2 22 a 2 T medium sized (-orljriiercial/retail building. • The building may not be one which has been identified by the HRA or City for o o possible acgUisition. O O N O C L 0 �i C (n M O 0) d C (LS _ (� p O N E O N 0 � �.-�, i xM O 3 6 -0 C E OCO 0 - N O O 0 O -0 i) Y N 0 0= O U p HOW TO APPLY Depending upon the scope of the project it is possible to begin the renovation within two months of the initial application review. •- Obtain an application at Hopkins City Hall._ 935-8474. • Prepare preliminary design plans. • Return the completed application and design plans for staff review. The completed application will be reviewed to determine the applicants ability to repay the loan. The proposed improvements will be review- ed by City staff, Hopkins Business Council and the HRA Board of Commissioners for final approval. FOR MORE INFORMATION CONTACT: THE CITY OF HOPKINS COMMUNITY DEVELOPMENT DEPARTMENT 1010 1ST STREET SOUTH HOPKINS, MINNESOTA 55343 (612) 935-8474 L 0 �i i O � i C LU HOW TO APPLY Depending upon the scope of the project it is possible to begin the renovation within two months of the initial application review. •- Obtain an application at Hopkins City Hall._ 935-8474. • Prepare preliminary design plans. • Return the completed application and design plans for staff review. The completed application will be reviewed to determine the applicants ability to repay the loan. The proposed improvements will be review- ed by City staff, Hopkins Business Council and the HRA Board of Commissioners for final approval. FOR MORE INFORMATION CONTACT: THE CITY OF HOPKINS COMMUNITY DEVELOPMENT DEPARTMENT 1010 1ST STREET SOUTH HOPKINS, MINNESOTA 55343 (612) 935-8474 C I T Y p F H O P K I N S COMMERCIAL SIGNS REHABILITATION GRANT PROGRAM Questions — Call 935-8474 The Planning & Economic Development Department PURPOSE Eligible projects shall include the following: • New signage for rear entrances. The City of Hopkins provides funds to assist business owners in improving their commercial • New signage to replace legal, non -conforming signs (i.e. grandfathered signs that violate the ex- signs. isting zoning ordinance, but remain due to the WHO'S ELIGIBLE grandfathered clause). The sign must meet City Zoning code specifications and the design 1. The building must be located within the Grant guidelines. boundaries shown on the enclosed map. • New tenants replacing all existing signage. - -: Z. -T -he applicant must be a business owner or tenant - • -Removal of signs no longer in use. of a commercial/retail business. • Repair and maintenance of existing signs (see in - TERMS eligible projects). • Window signs which are an integral part of the The sign must comply with all zoning and design business name. guidelinesr.Qfating to size, appearance, etc. The following projects are eligible for a grant. Signs that meet the guidelines and receive ap- However, the Design Committee will review them propriate approval can qualify for a grant covering carefully to determine if they are compatible with the 5010 of the cost of the sign or $1,000, whichever is building and neighboring signs. less. • Repair and maintenance of old neon signs. Any work completed prior to approval will not be con- • Construction of new illuminated and neon signs. sidered for grant money. • Replacement of faces on old illuminated/neon signs (illuminated = backlighting or internally.) PROCEDURES 1. Contact the Planning and Economic Develop- ment Department to obtain an application 935-8474. 2. Complete application and return with appropriate materials. ELIGIBLE IMPROVEMENTS This grant program is intended to encourage new signs at rear entrances, the repair and maintenance of old signs, and the upgrading of store front signage. Even small, relatively inexpensive improvements show that you care enough about your business to keep it in good repair. Ineligible projects include: • Semi -permanent -signs, window signs, posters and/or banners and billboards. • Signage for new constructin (building) projects. • New construction of pylon or pole signs. Signs that display the symbol, slogan or trademark of brands or beverages or other products will not qualify. E 0 d c as C9 C co a� a C in U N E E 0 U m 0 C 0 U .Q fl. M C C co C 0 C E 0 e 0 E <u E -o C5 a) 0 W Y N C 0 m co CL Cn w X Q � Z Q O X a I A' �1.'..1L ECONOMIC DEVELOPMENT REVOLVING LOAN FUND PARTICPATING LENDERS First Bank Apple Valley 15025 Garrett Avenue Apple Valley, Minnesota 55124 432-0663 Firstar Bank Eagan 3900 Sibley Memorial Highway Eagan, Minnesota 55122 686-0487 First Federal Savings and Loan 14994 Glazier Avenue Apple Valley, Minnesota 55124 432-6840 Midway National Bank 14300 Nicollet Court Burnsville, Minnesota 55337 892-5585 TCF 7520 - 149th Street West Apple Valley, Minnesota 55124 823-2265 Marquette Bank Apple Valley 14801 Glazier Avenue Apple Valley, Minnesota 55124 432-2000 Dakota County Housing & Ms. Sandra Lipsey - President Ms. Gina Gustafson - Commercial loans Mr. Mike Larkin - President Mr. Gary Manney - Commercial loans Mr. Pat Lenertz Mr. Art Nelson - Vice President/Regional Manager Mr. Gary Kluthe - Commercial loans Mr. Greg Bethke Ms. Jeri Slinger - President Mr. Greg Hilding - Commercial loans Mr. Thomas Rybak - Commercial loans Redevelopment Authority Ms. Kari Gill - Deputy Director 2496 - 145th Street West Ms. Diane Nordquist - Project Manager Rosemount, Minnesota 55068 423-4800 aH.scJe't'-� ��p�t-�i n`CiW� ., S (its +6ot4 I re 0 `w C/ 4-1-92 IL The City of Hopkins („CityI and Hopkins Housing and Redevelopment Authority ("Authority" have established a Development Account to assist in providing a source of funding to be used to foster and promote development and redevelopment activities within the City of Hopkins. Account is a revolving fund established b P The Development administered by the AuthY the City and Authority, and ority: The bevelopment Account is intended to Provide 'Ian on-going source of funding to be used to reduce the need for or extend 'the long-term debt Issued in connection with the Authority's development activities. The Development Account also serves as s centralized accounting system to provide financial overview and control in connection with assisted projects and programs. The purpose of these Guidelines is to set forth in general terms requirements regarding the funding of the Development Account and use of funds contained therein. The Authoritymay Guidelines 8t any time y modify the terms of these provided, that any change in Section II below shall require the consent of the City Council. The source of funds used to create and to maintain the Development Account consists generally of the proceeds from the repayment of oans, Other project revenues Including payments received from the sale of real and personal property, recycled federal and state grants and other funds as .designatett Brom time to time by the City Council of the City and Board of COMMissibners of the Authority. In particular, the following sources of funds will be used to hued and maintain the Development Account: A. Interest earnings on various projects andr P ogram accounts; B. Proceeds from the sale or resale of real andpersonalProperty connection with development and redevelopment projects; ►n C. lncbme derived from the repayment of loans and grants under various couhtY, state and federal loan and grant pr og Federal Economic Development GrantArms, including the ograCommunity Development Block Grant Program;m and the Federal D. Loan repayments and other program income from the following Programs.. Commercial Loan Program, the City's Sign Rehabilitatin Program, and income derived from rental properties owned by the Authority. 1 Other funds may from time to time be direr#ed to 'be .laced Into - t Development Account by action of the City Council and Authority's -Board of Commissioners. The City Manager and City staff and Executive Director and Authority staff are directed to take all actions necessary to fend and mainta n the fend balance in the Development Account. To the extent that funds :n the Development Account are subject to restrictions as to their use by virtue of the source of such funds, the Development Account will contain sub -ace ounts to ensure that such restrictions as to re -use of funds are met. III. Obieati l ,.a. As a matter of policy, the Development Account will only be used to assist Proposed projects which meet one or more of the following uses: A. To redevelop blighted or under-utilized areas of the community. • To meet the following housing -related uses: 1. 2. 3. 4. To. provide a diversity of housing adjacent to the Hopkins downtown area. To provide a variety of housing ownership alternatives and housing choices. To promote affordable housing for low or moderate income Individuals. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading in existing housing stock In residential areas. To remove blight and encourage redevelopment in the commercial and industrial areas of the City In order to encourage high levels of Property maintenance and private reinvestment In those areas. To increase the tax base of the City in order to ensure the long-term ability of the City to provide adequate services for its residents while lessening the reliance on residential property tax. To 'retain local jobs, increase the local job base and provide diversity in tact job base. To increase the local business and industrial market potential of the City of Hopkins, G. To provide adequate short term business and shopper parking and residential parking. H. To encourage additional unsubsidized private development in the area either directly or through secondary "spinoff" development. L To promote the potential future usage of a public transit system light rail ''line through maximizing the development potential of parcels adjacent to the sytem stations. 2 J. TO offset increaaod o costs that a developer swould incura of t npa rm�iver ndabove bur ase development. ban K. To acCelerate the development process and to achieve dm oh sites which would not be developed without this assistance. evelaP errt �. To meet other uses of public polfcy, as adopted by the Authority from time to time, Including promotion oft a�,ehitectural desl quality urban design,: quality gr4 energy conservation, decreasing the Capital and operating coats of local government, etc. IV. Use of Dnvelo merit Account The following general guidelines will be followed in connection with of funds f' Onl the Development Accounts the use A. The types of uses of the Development Account will include, but be'limited to, the followings (i) the making of loans at interestrates below or at market rates of Interest In order to strengthen the financial feasibility of proposed projects; (ti) the guaranteeing of loans; (Ili) the provision of secondary or gap financing for particular projects; (Iv) the financing of land acquisition and acing soma and the construction of public Improvements and utilities to Bid proposed projects; (v) administration of economic development programs; and NO any other uses as permitted by applicable law. B. To the extent possible, funds from the Development Account will b allocated to a number of projects and r e risk that funds to be repaid will not be available for efuut re use - C. The 11 Development Account may be used to provide short-term financing of the public cost of particular projects so as to allow te h sale of bonds to provide long --term financing of such costs at a time and rate most economically beneficial to the City and Authority. D- All funds from the Development Account will be adequately secured by liens, tax increment, letters of credit and other forms of reasgnable security. E• Ever_* attempt will be made to ensure that all funds from Development Account will be r the established from time to time by the Authority. erest at interest rates 3 1. Meet with the proje schedule, necessary CITY OF HOPEINS DEVELOPMENT ACCOUNT PROCEDURES appropriate City/HRA staff to discuss the scope 't, public participation being requested, time project feasibility and other information as may W47 be 2. Completion of Preliminary Application for Use of Tax Increment Completion Financing',ior Development Account Funds.* This form shall be submitte&to the Director of Community Development. i 3. The request shall be reviewed by City/HRA staff on a preliminary basis as to the feasibility of the project. The staff shall prepare a report on the project. 4. The application shall be placed on the City Council/HRA agenda for concept review. The applicant may make a formal presentation of the project. The staff will present its findings.: 5. completion of a formal Tax Increment/Development Account Completion Application form accompanied by a fee of, $1000.00 which shall only be refunded at the time of signing a redevelopment contract; should the project be approved. 6. If determined appropriate, the applicant shall, at this time, make application to the Zoning & Planning Commission for Concept Review. 7. Following the necessary financial analysis and preparation of detailed plans, the City Council and HRA, if necessary, shall take action on the project. If approved, the staff will be directed to undertake the following steps: - prepare a redevelopment agreement based upon the terms' :approved i At this time a $1000-00 deposit (cash or letter of credit) shall be required to defray costs involved with this step, which shall also be refunded at the time a redevelopment contract is signed, should the project be approved. 8. If a redevelopment plan or zoning action is required, the Zoning and:Planning Commission, City Council and HRA shall take the appropriate action at the same time that the redevelopmdht agreement is considered for approval. $100.00 pre-4,pplication fee DEVPROCD CITY OF HOPKINS PRE -APPLICATION FOR USE OF TAX INCREMENT FINANCING ASSISTANCE OR DEVELOPMENT ACCOUNT FUNDS Legal name of applicant: Address; Telephone number: Name of contact person: Type of assistance requested: Addendum shall be attached hereto addressing in detail the following: 1. A map showing the exact boundaries of proposed development. 2. Give a general description of the project including: size and location of building(s); business type or use traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. 3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property will be zoned. 4. A statement identifying how the tax increment or development fund assistance will be used and why it is necessary to undertake the project. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation, new jobs to be created and other community assets. 6. A written perspective of the developers company of corporation, principals, history and past projects. A $100.00 fee shall be paid at the time the Pre -application is submitted. SIGNATURE Applicant's signature: Date: 1. Meet wit the proj schedule CITY OF HOPKINS DEVELOPMENT ACCOUNT PROCEDURES appropriate City/HRA staff to discuss the scope of ct, public participation being requested, time •project feasibility and other information as may be 2. Completion of Preliminary Application for Use of Tax Increment Financing or Development Account Funds. This form shall be submitted to the Director of Community Development. 3. The request shall be reviewed by City/HRA staff on a preliminary basis as to the feasibility of the project. The staff shall prepare a report on the project. 4. The application shall be placed on the City Council/HRA agenda for concept review. The applicant may make a formal presentation of the project. The staff will present its findings.' S. Completion of a formal Tax Increment/Development Account Application form accompanied by a fee of $100.00 which shall only be refunded at the time of signing a redevelopment contract; should the project be approved. 6. If determined appropriate, the applicant shall, at this time, make application to the Zoning & Planning Commission for Concept Review. 7. Following',the necessary financial analysis and preparation of detailed plans, the City Council and HRA, if necessary, shall take action on the project.' If approved, the staff will be directed to undertake the following steps: - prepare a redevelopment agreement based upon the terms approved At this time a $1000.00 deposit (cash or letter of credit) shall be required to defray costs involved with this step, which shall also be refunded at the time -a redevelopment contract is signed, should the project be approved. 8. If a redevelopment plan or zoning action is required, the Zoning and, Planning Commission, City Council and HRA shall take the appropriate action at the same time that the redevelopment agreement is considered for approval. CITY OF HOPKINS Application for Use of Tax Increment Financing or Development Account Funds GENERAL INFORMATION• Business Name: -Date: — Address: Type (Partnership, etc.) Authorized Representative: Phone: Description of Business: Legal Counsdl• Address: Phone: FINANCIAL BACKGROUND: 1. Have you,ever filed for bankruptcy? 2. Have you ever defaulted on any loan commitment? 3. Have you applied for conventional `financing for the project? 4. List financial references: a. b. C. S. Have you ever used Hopkins Development Account funding or Tax Increment financing before? If yes, where and when? 1. Type of assistance requested: 2. Location of Proposed Project: 3. Amount of (Assistance request? 4. What will lassistance be used for? S. Present ownership of site: HOPKI S MAINSTREET SIGN REHABILITATION GRANT PROGRAM 1992 Business signs are a very important part of the image created andjgiven to a community. Improving your signs by following these design guidelines will; attract customers for your business, show customers that you care about them and, in addition, help give the City of Hopkins a fresh new look. One that people will notice. Your sign becomes part of the building it is mounted on. A good sign can enhance the appearance of your building if it is'designed'',with the proper colors, proper size, neat lettering and careful construction and mounting. It is recog: general per essential f, communicati: availabilit- orientation because of environment on occasion The intent provide mor which enhar appearance. ized by the City of Hopkins that signs in orm certain functions in the community which are r the public safety and general welfare; such as g messages, providing information about the of goods and services and providing It is further recognized by the City that heir potential detrimental impact on the retail exterior signs need to be upgraded and improved f the Sign Rehabilitation Grant Program is to y for the repair or replacement of old signs e the building's character and Hopkins' overall The program'',is intended to reduce sign clutter and provide a strong, clear identification for the business. The program is in placel,to help improve the image of the City and enhance each businesses pride in itself. GUIDELINES If the project is approved, a grant shall be provided for either 50% of the cost of an eligible project or $1000.00, whichever is less. Money received through the City's Commercial Rehabilitation Loan Program may not be used by the recipient to match the 50% needed for the grant. The Hopkins',Mainstreet Sign Rehabilitation Program shall apply to the all commercial buildings within the area defined by Shady Oak Road on the west, Highway 18 to the east, First ',Street N. to the north and County Road 3 to the south (see appendix A). The provisions of this program are supplementary to those of the Zoning Code and Hopkins Mainstreet Sign Design Guidelines,'and the most restrictive provision shall apply. Avoid overly large signs. The sign should not dominate your storefront; '',its shape and proportions should fit the architectural style and historic character of your building. It is necessary to meet the City Zoning Code and the Hopkins Mainstreet Sign Design Guidelines for design criteria. Basically, business signs should be no more than two feet six inches (2' x 611) in height. Projecting signs should have no greater dimension than eighteen inches wide by sixteen inches high (18' x 1611) and should not be mounted lower than ten feet from ground level. SIGN REVIEW'COMMITTEE The applicant's proposals shall be reviewed by the City of Hopkins Office of Community Development for compliance with the zoning ordinance. The review of sign design and style will be conducted by the Downtown Business Council Design Committee. ,The Design Committee will be reviewing the sign to make sure it complies with the Sign Design Guidelines and to verify that it does not deter from the historic and/or architectural character of buildings. Sole discretion on whether to approve or deny shall rest with the Design Committee. City staff will review the plans with the Design Committee within 14 days of submission and notify the applicant of the decision to' approve or disapprove the plans. The worthiness of the sign',and the conditions to be imposed for the sign to be considered for a grant, shall be determined by the Design Committee and the Office of Community Development. The department may, at it's discretion, establish a reasonable fee, not to exceed one percent of total project cost. This'fee would be used to cover the cost incurred in reviewing the application. Funding of a project shall be contingent upon how it meets Program criteria. If denied the individual may appeal a decision by the Office of Community Development and Design Committee to the City Council. Applicants for a Rehabilitation Sign Grant shall agree to an inspection of the subject property by the City of Hopkins prior to approval. A final inspection will take place after the work is ',completed. These inspections will be done to determine that the sign meets all established program guidelines.', GRANT COSTS'' Any costs incurred before the time of application will not be considered part of the total sign costs. * No grant shall be considered by the City if a sign permit has been issued prior to application. No work shall begin until final ''approval and a notice to proceed order is received by ',the applicant. ANY SIGN PUT IN PLACE BEFORE APPROVAL WILL NOT RECEIVE GRANT MONEY. ELIGIBILITY Applicants located within the program boundaries must comply with the following terms to qualify for participation in the sign rehabilitation grant program: 1. The property must be located within the area designated by the Hopkins City Council, (Appendix A) and it must not be subject to future acquisition by the H9A. 2. The recipients interest in the property shall include ownership, partnership, corporation, or tenant; tenants must be engaged in the conduct of a business or commercial enterprise within said building. 3. Eligi - new - new (i. zon gra Zon gui - new rem rep ine Win bus le projects shall include the following: signage for rear entrances. signage to replace legal, non -conforming signs grandfathered signs that violate the existing ng ordinance, but remain due to the dfathered clause). The sign must meet City ng code specifications and the design elines. tenants replacing all val of signs no longer it and maintenance of igible projects). ow signs which are an ness name. existing signage. in use. existing signs (see integral part of the The following projects are eligible for a grant. However the Design ommittee will review them carefully to determine if the are compatible with the building and neighboring signs. repair and maintenance of old neon signs. - construction of new illuminated and neon signs - replacement of faces on old illuminated/neon signs. (illuminated = backlighting or internally) 4. Ineligible projects shall include the following: - semi permanent signs, window signs, posters and/or banners. - new construction (building) projects. - New construction of Pylon or pole signs 5. Plans and specifications in satisfactory form shall be submitted by the applicant and be in compliance with ''City Zoning codes and applicable Downtown Hopkins Design Standards. At the minimum, the following information needs to be provided: A) A''front elevation (front view) drawing of the sign drawn to scale. This can usually be obtained from the sign company, an architect, or a graphic arts company. The minimum scale is one inch = one foot. While the City will not recommend a company who may help '',you with your sign, it can provide you with a list',of all sign companies who are members of the Twinwest Chamber of Commerce. The Admasters Alan Signs Signs Now 1009�Mainstreet 1721 Mainstreet 10100 6th Avenue Hopkins Hopkins Suite 104 938-j106 935-2376 Plymouth 591-6080 Image Now Signs & Design Lake Way Signs & Display 5730 ''Duluth Street 10810 Wayzata Blvd Suite 205 Minnetonka Golden Valley 544-8405 546-9657 B) Either a front elevation drawing to scale of the building with the proposed sign located on it (minimum scale 1/4 inch = l foot) or a photo of the building front. C) A',specification sheet describing sign materials, (wood, metal, etc.) exact letter size, and colors to be used. D) A',completed application. APPLICATION PROCEDURES FOR THE HOPKINS SIGN REHABILITATION GRANT PROGRAM 1.) Applications and guidelines for the sign grant program are available at the City of Hopkins. The City encourages applicants to talk to local sign companies to illustrate the final project, bid on the work and help complete the application' 2.) Final project will get City approval from the Community Development 'Department. 3.) Completed applications with approval from the Office of Community Development, which do not meet the Downtown Design Standards, will be returned to the applicant with suggestions '',and comments for review and/or re -design. 4.) A City Sign Permit shall be obtained. 5.) When the work is completed, a final inspection made, and presentation of an invoice, a check will be issued for either $1000.00 or 50% of the project, whichever is less. APPLICATION FOR SIGNAGE IMPROVEMENT GRANT PROGRAM DATE: / BUSINESS OWNER INFORMATION Name: DBA Name: Address: Phone: Owner of Property: Phone: TYPE OF IMPROVEMENT New Signage. Rear Front New signage'',to Replace legal Non -conforming Signs: Repair & Maintenance of existing signs: APPLICATION CHECKLIST 1. If tenant, letter of acknowledgement from owner. 2. Signed bid from sign company. 3. Affront elevation drawing of the sign drawn to scale. 4. Drawing of the entire building indicating sign proportion and placement. 5. A'specification sheet describing sign materials Does it meet: 6. City Building Code Specifications(Sign Ordinance)? City Sign Inspector's Signature: 7. Downtown Design Guidelines? 8. City Permit/ Council Approval TOTAL COST OF BID:$ AMOUNT OF GRANT 50% OR $1000 :$ SIGNATURE: DATE: / / Application OFFICE USE ONLY SIGN REHABILITATION GRANT PROGRAM 1.) Application Received: 2.) Review for Eligibility: STAFF: SIGN INSPECTOR CITY ORDINANCE DESIGN GUIDELINES 3.) Staff Comments: 4.) Staff Report Prepared: Council(Meeting: 5.) Check Amount: $ Check #: Issue To• Check Received By: DATE: T COMMERCIAL REHABILITATION LOAN PROGRAM GUIDELINES FOR THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF HOPKINS JULY 27, 1990 Planning and Economic Development Department 1010 First Street South Hopkins, MN 55343 (612)-935-8474 summary: TO provide low interest, long term loans as an incentive for tenants and owners to upgrade the appearance of commercial properties and the commercial area as a whole. Loan Terms and Conditions: A. Housing and Redevelopment Authority of the City' of Hopkins (HRA)/bank participation - The HRA and/or bank will participate in a loan on a matching basis. (In a $100,000 loan, the HRA's share and the banks share each will be $50,000). B. Loan Maximum - No loan shall exceed 80% of the market value of the property upon completion ofthe rehabilitation, less the outstanding balance of any prior encumbrances. The maximum loan guaranteed by the HRA shall not exceed $50,000 unless City Staff can verify and justify any of the following: - Substantial deterioration of building. - The size of the building is larger than 30,000 Sq Ft. - The building has been vacant for one year or longer. If the applicant can show hardship because of any of the above or any other unique situations or circumstances as determinedby the HRA, the HRA has the ability, but is not required, to increase the maximum loan. This maximum is on a per business and/or building basis which means each building can incur no more than $200,000 HRA debt share at any given time from this program no matter how many businesses occupy that building. C. Interest Rate - Rates will be either 3% or 6%. The rate will be :i determined by the type of project being completed: ** See Below D. Term - The maximum term allowed shall be up to 20 years. The bank and/or HRA shall make the determination, for appropriate terms based upon a pro forma analysis of -the project. ** Because the City would like to encourage the upgrading'of exterior facades, applicants. desiring funds for these exterior improvements shall have the opportunity to receive a rate & terms more favorable than an applicant seeking interior improvements only. A mixed intsrior/exterior project will have to be at least 51% exterior work to receive the lower terms/rates. E. Collateral Required - The bank and the HRA shall determine the appropriate collateral on a case by case basis. - The bank shall have senior lien on any collateral required.. - The HRA will have identical collateral, but subordinated to bank. Bank will file for the HRA any liens required on collateral. - HRA stuff may require that bank secure specific additional collateral in some instances. Eligibility Criteria A. APPLICANTS 1. To be eligible for a commercial loan the applicant must be located within the City of Hopkins Redevelopment Project Boundaries shown in exhibit A. 2. The applicant must be located within a small or medium sized commercial/retail building having a principal commercial/retail character and contain less ,than 30,000 usable square feet. 3. The building to be rehabilitated may not be one which has been identified by the HRA for possible acquisition in a redevelopment project/proposal. 4. The horrower's interest in a building may be and shall, include individual ownership, partnerships, corporations, and contract for deed vendees. (A tenant can initiate a rehab loan, but the building/property ownermustalso sign the note). 5. An, applicant must have the ability to repay the loa and be an acceptable credit risk as determined by he bank. HRA staff also have. the right to request financial information and determine if an applicant is an acceptable credit risk. 6. An applicant's property must conform to use under the City's Zoning Ordinance. All plans and specifications required, must be in conformance with Hopkins City Codes and subject to approval by the ',Chief Building Inspector. 7. Upon completion of improvements, the applicant's property must comply with all applicable code, permit and license requirements and must have a current Certificate of Occupancy. (applicable code items would be those items detailed by the inspections department prior to and during the rehabilitation) 8. The applicant must demonstrate the building is insured for its full replacement value. 9. All associated loan costs detailed below are eligible expenses on a rehabilitation loan. However, such costs shall not be used in calculating the required facade improvements. A.'Attorney Fees B.'',Appraisal Fees C. Credit Reports D.,Abstract and Filing Fees E. Mortgage Registration F.'Title Insurance Premiums G.IService Charges H. Fees for Credit Approval I.IInspections J. Interest K.',Environmental Survey L. Architectural/engineering B. IMPROVEMENTS 1. Exteriorll',Commercial Improvement Loan Under this type of loan an applicant may improve the exterior appearance of the building and property and will not be required to do any interior improvements if applicant provides a valid Certificate of Occupancy. Staff aproval of exterior design and all improvements is necessary. (The project must be reviewed by the Hopkins Business Council and meet all appropriate design guidelines detailed in exhibit A). This loan is at a rate of 3% interest. The following are eligible expenditures under this loan; a. All Work must be on the front, rear or sides of a commercial building. b. Cleaning, painting and staining of exterior surfaces. C. Masonry repairs. d. Repairing or replacing of cornices,, entrances, doors,, windows, decorative details and awnings. e. sign',removal, repairing or replacement. (The Sign Grant', Program can not be used -simultaneously with this program). f. Architectural design services for plans and specifications. g. Building identification. h. Other', items that are viewed necessary to compliment exterior. i. Building permits. j. Energy Audits. 2. Exterior - Interior Commercial Improvement Loan Upon thel, correction of all applicable health and safety code deficiencies, an app leant may include other fixed interior, improvements among his work. If the cost of interior, improvements is larger than 50% of the total loan, the interest rate of the loan will be b%. In additionito the eligible expenditures listed previously under the exterior commercial improvement loan, the following additional expenditures are eligibles a. Fixed improvements including the repair and/or upgrading of walls, ceilings, floors, lighting, windows, doors, entrances, electrical, plumbing, mechanical, air-conditioning, architectural change, energy improvements, etc.. b. Repair of parking lots, including lighting, surfacing and landscaping. (No new construction) This, will be considered as part of the interior improvement loan. C. Roofing is to be considered as part of the interior improvement loan. d. Expansion of a commercial structure will be allowed if 1. Exterior improvements and applicable health and sa',fety code deficiencies will be corrected as part of the loan 2. The expansion or addition will not detract from the appearance of either existing structure or thle surrounding area. 3. That it meets all zoning, parking, permit, license requirements, etc.. 4. The cost of the expansion is less than 25% of the loan amount. 5. The expansion is for the purpose of correcting an functionally obsolete building. 3. Interior Commercial Improvement Loan The items', listed in Subsection a., from the Exterior Interior Commercial Improvement Loan listed above, are the only 'eligible expenditures under this loan. This loan is at a 6% rate of interest. a. Refinancing b. Non -Fixed improvements c. Working Capital d. Inventory e. Sweat Equity - payment for the applicant's own labor and performance for construction or improvements. f. Improvements completed prior to loan closing. CONTRACTING AM CONSTRUCTION A. All applicants shall provide the HRA with information on the "Loan Application Form" detailing, applicants interest. regarding rehabilitation of building, giving permission for code inspection and any other requested supplements necessary to achieve the HRA approval for this subject. B. A document (Scope of Work) is to be submitted to the HRA and/or bank detailing the work to be performed, estimated cost, and any other documentation necessary to achieve the HRA's approval for this project. C. Contractors and all Sub -contractors providing work under this program are to be licensed and must meet the insurance, and bonding requirements of the City of Hopkins. The contractor and/or sub -contractor is to be knowledgeable of and/or responsible for quality and workmanship, conducting proper business practice and be financially capable. D. The quality and progress of the work is to be monitored throughout the term of the contract by the loan recipientand general contractor. E. Payment requests (either partial or final) cannot be made by the contractor until a written request for payment is made and the loan recipient, the bank and the HRA have accepted the eligible improvements in writing. Verification should also be obtained from an inspecting architect.) If the contractor requests periodic draws on completed, work, the draws shall be limited in amounts equal to the value of materials furnished and/or services performed at the time of request. Draws will be limited to a monthly draw. All payments may be subject to a final 10% holdback. The holdback may be used to I correct unsatisfactory work, or defray costs to obtain a replacement contractor and/or to complete the project., The contractor is to furnish the necessary lien waiver for all payments. F. All chance orders must be approved by the Bank, the City and the owner. G. All worki,is to be covered by the normal required permits and approvals of affected agencies. H. All work must be inspected by the City Building Department to insure conformance with code and must be verified for proper completion by HRA staff to insure compliance with specifications prior to final payment. The final inspection cannot be scheduled until all permits taken out have signed off by field inspectors. I. All eligible improvement work performed pursuant to a commercial rehabilitation loan must provide a 12. month warranty from the date of accepted completion by the loan recipient and the HRA. This warranty must cover the quality of materials used and workmanship in performing the work. This warranty is the responsibility of the loan recipient and a copy of this .warranty document should be provided to the city prior to final payment. The city is acting only as an lending agency in this project and is not a guarantor of the project and as such is not responsible for complaints of unfinished or defective workmanship or products. Application Commercial Rehabilitation Loan Program Applicant's Name Home Address Name of Business Business Address_ Type of Business ( Number of -Years Oper Current Number of En Estimate Number of j Home Phone Business Phone ibe) ting at Present Business Address Years loyees Full Time Part Time bs to be created over next year. _Full Part Owner of Property (name) Phone (address) Is Building Occupied? Yes No If No, how long has it been vacant? Months Years Does the Business Occupy the Total Building? Yes No If you answered NO to the above, What percentage does it occupy? and What Occupies the Balance of Space? Will this Rehab ProJect replace any housing units? Yes No If Yes, the number of units is Use of Loan proceeds (including the Bank's portion) 1. Demolition $ 2. Exterior Improvements 3. Code Deficiencies' 4. Interior Improvements (excluding #3) 5. Engineering &.Architect 6. Other Costs: TOTAL Bank of Business Account and Address: Commercial Loan Off�cer: Phone Number Certifications: Applicant: All information in this application and the exhibits are true and complete to the best of my knowledge and are submitted to the City of Hopkins so the City can decide whether to participate with a lending institution in a loan to me. Applicant authorizes City to receive, review and examine all information submitted to and obtained by participating lender pursuant to applicant's loan request. By Date BY Date Building Owner: The owner of the building mentioned in this loan Lo lication grants permission for all City inspections e in conjunction with this rehab project, Date Submit to: City of Hopkins Department of Planning and Economic Development 1010 First Street South Hopkins, MN 55343 Application Received': Date: Recommendation: Approve FOR CITY USE ONLY Financial Review: Date Deny If denied, why: Loan Amount ,Rate Term years Monthly Payment Is this loan an assumnption of a current loan? Amount Program: Exterior R hab Interior Rehab Ext -Int Rehab Scope of work/plans received: Date: City Planner Review:; Date: If Denied, why Approved Denied Signature: g Date: City Building Inspector Review: Date: Approved Denied If denied, Why: Signature: Date: Health and Safety Inspection: Date: Approved Denied Comments or Orders: Signature: Date: HRA Board review: Date: Approved Denied If denied, Why: Signature: Date: City Approval Letter to Bank: Date Bank Commitment Letter Received: Date: Building Permit Issued: Date: City Check Issued: Date: Final Inspection: Date: Approved: Denied: Applicant's Name____! Home Address Name of Business Business Address ; Application commercial Rehabilitation Loan Program Home Phone Business Phone Type of Business (Describe) Number of Years Operating at Present Business Address Years i Current Number of Employees Full Time Part Time I Estimate Number of 'jobs to be created over next year. Full Part Owner of Property (name) Phone (address) Is Building Occupied? Yes No If No, how long has it been vacant? Months Years Does the Business Occupy the Total Building? Yes No If you answered NO:,to the above, What percentage does it.occupy? and What Occupies the Balance of Space? Will this Rehab Project replace any housing units? Yes No If Yes, the number 'of units is Use of Loan procee4s (including the Bank's portion) 1. Demolition $ 2. Exterior Improvements 3. Code Deficiencies i 4. Interior S. Engineering & 6. Other Cost: (excluding #3) .tect TOTAL Bank of Business Account and Address: Commercial Loan Officer: Phone Number Certifications: Applicant: All inf6rmation in this application and the exhibits are true and complete to the best of my knowledge and are submitted to the City of Hopkins so the City can decide whether to participate with a lending institution in a loan to me. Applicant authorizes City to receive, review and examine all information submitted to and obtained by participating lender pursuant to ',applicant's loan request. BY Date BY Date Building Owner: The owner of the building mentioned in this loan application grants permission for all City -inspections made in conjunction with this rehab project. LIM Date Submit to: City of Hopkins Department of Planning and Economic Development 1010 First Street South Hopkins, MN 55343 FOR CITY USE ONLY Application Received: Date: Financial Review: Date: Recommendation: Approve Deny If denied, why: Loan Amount Rate % Term years Monthly Payment Program: Exterior Rehab g Interior Rehab Ext -Int Rehab Scope of work/plans received: Date: City Planner Rev If Denied, why: : Date: Approved Signature: Date: City Building I If denied, Why: Signature: Denied Review: Date: Approved- Denied Health and Safety', Inspection: Date:. Comments or Orders; Signature: Downtown Busines If denied, Why:_ Date: Approved Denied Date: Council Review: Date: Approved Denied Signature: Date: HRA Board review:,Date: Approved Denied If denied, Why: Signature: Date: City Approval Letter to Bank: Dates Bank Commitment Lletter Received: Date: s Building Permit Issued: Date: City Check Issued',: Date: Payments made: Date: Date: Date: Final Inspection:,Date: Approved: Denied APPENDIX B DOWNTOWN HOPKINS DESIGN GUIDELINES FACADE STANDARDS: The recommended general -design standards forstructuresand sites in downtown Hopkins are as follows: 1. Facade standards apply to building fronts and exposed sides and rear walls. 2. The distinguishing original qualities or character of a building and its site, where still in existence, should not be 'destroyed, removed'or altered. 3. All building structures and sites should be recognized as products of their own time and it is the intent of these standards to pre- serve, as nearly as possible, the architectural features of such time. However, changes which are evidence of the history and develop- ment of a building, structure or site and. its environment, shall be Preserved, when possible, if those changes have -acquired a recognized and respected significance of their own. 4. It is not the intent of these standards to exclude modern design or to inhibit creative initiative. In instances where faithful restora- tion or replication isnot practical, historically or economically justified, remodeling may be done in a contemporary manner, sym- pathetic,, with and complimentary to the general character of the Nall. Such renovations or alterations should not destroy significant historical, architectural, or cultural material. Buildings should be considered as total units from grade to cornice line and should be designed in a way that the total facade is a harmonious unit. S. Distinctive stylistic features of a building should be preserved when- ever possible in a condition or appearance as near as possible to their original appearance. Deteriorated architectural features should be repaired and restored rather than replace, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture and other visual qualities,,. Repair or replacement of missing architectural features should be',based on accurate duplications of such features where possible and appropriate. However, new show windows, lighting, hardware, details, ornament,, doors, and other elements may be designed in a way sympathetic and complementary with the spirit and character of the building. 6. Solid, permanently enclosed or covered facades will not be approved. All* upper 1 level windows should be fully exposed. Windows should be replaced or repaired as necessary and maintained in a condition to give an "occupied" look, A minimum of .401 of the area of the Ground Floor shall be comprised as doors and/or transparent material. Doors may be solid or opaque, or a combination of both. Opaque or translucent windows or material shall not'be considered transparent. FUNCTIONAL STANDARDS: The general sunctional standards for structures and sites Should be as follows: 1. All structural and decorative elements of building fronts and sides exposed' to view should be made structurally sound. Deteriorated or missing portions Should be repaired or replaced in a workmanlike manner. All facade elements and elements exposed to view should be well maintained, cleaned and painted as required, 2. All lightii boxes and conditionic non-functic 3. The surface damaging me not be used materials s 4. Roofs: Roo be repaired street shou walls. Tel, spicuous mai DESIGN GUIDELINES PAGE TWO g and electrical elements including wiring, conduits, junction 11 elements of mechanical equipment including pipes, ducts, air g units, should where possible, be concealed from view. All ning elements should be removed. cleaning of structures must be undertaken with the least thod possible. Sandblasting and other cleaning methods should as these methods can unalterably damage historic building 'ch as brick. .s and chimneys or other auxiliary structures on the roof should and cleaned as required. Any construction visible from the A be finished so as to harmonize with othervisiblebuilding .vision and radio antennae should be located in an incon- ner. SIGNS: The general design standards for signs shall be as follows: 1. Definitions a. Sign: The word "sign" means any letters, pictorial representation, symbol, flag, emblem or illuminated device displayed in any manner whatsoever, which directs attention of persons off the premises on which the sign is displayed to any object, subject, place, -persons, activity'I, service, institution, organization, or .business. b. Dimension of a sign: The words "dimension of a sign" means total dimensions enclosing the extreme limits of letters or perimeters of backgrounds, borders, emblems, color or frame or any device used to distinguish the sign from the building surface on which it is placed. Except as stated, structural supports shall be considered part of the sign. 2. General: a. It is not the intent of these standards to create uniformity of signage or to inhibit creative initiative. b• Signs should be designed and placed so as to appear an integral part of the building design, to be consistent With the period of the building, to respect neighboring properties and the district in general.Signs shall be designed with appropriateness relative to the services of the establishment served. 3. Recommended`Sgnage: a. Signs that are determined to be original part of the existing building facade should be retained and maintained. A sign will be considered to be an "original part", if it was included as a component of the existing facade design and construction. b. Primary Signs: Each Ground Floor occupant in a building should have'no'more than one sign oriented to each public right-of-way on which the premises have frontage. This (these) sign(s) should identify the predominant use of the occupant or identify the building as a whole. 1) Primary signs may extend the entire length of the facade but should have a total vertical dimension of no more than two feet six inches (2'6"). Primary signs should not overlap horizontally. 2) Primary signs should be mounted no lower than eight feet (8') above the elevation of the Ground Floor and no higher than the elevation of the Second,Floor. 3) Primary signs may be painted directly on glass show windows or entry doors, in which case they may be located at any point below the eleva- tion of.the Second Floor but must be painted ;directly on the glass. Such signs should have a vertical dimension no greater than one foot (1'), DESIGN GUIDELINES PAGE THREE c. Secondary Signs: Each building may have one or more secondary signs. These signs should identify occupants on upper floors or occupants not considered the primary building user. 1) Each occupant may have not more than one sign painted directly on glass of upper windows. Upper window signs should consist of individual letters not over six inches (6") in height painted vertically on glass. Total sign dimension should be not greater than fourteen inches (14") in height. 2 In addition to upper window signs, each occupant may have one ground floor entry sign located at entryway With individual letters painted or located directly on glass, door, plaque or directory. Total dimensions of entry sign$, regardless of number of occupants identified, should not exceed two feet six inches wide and one foot six inches high (2'6'.' X 1' 6"). d. Overhanging signs: Overhanging signs are permitted at horizontal intervals along the front property lines of not less than twenty-five feet (25' O"). Overhanging signs should be no greater dimension than eighteen inches wide by sixteen inches high (18" X16"), shall extend no more, than twenty-four inches (2'4") from property line and shall be mounted no lower than eight feet (81 014 ) from elevation of Ground Floor. 4. Signage Not Recommended: a. No signs should be used other than those identifying a property where they are installed or identifying the use conducted therein. Advertising by material or product manufacturers is not recommended. b. No sign of light should move, flash, or make noise. (Goth the exception of signs displaying time, temperature, public information and barber totems.) C. Plastic or transparent "panel" signs will be reviewed for appropriateness for the particular building on an individual basis. They will be dis- couraged on buildings with historic character. 5. Illumination:' Any sign lighting shall be properly shielded :or diffused so as to eliminate glare. 6. Exceptions fo the sign recommendations: The following are appropriate in r.dd for to those signs listed above: a. Names of buildings, dates of erection, monumental citations, and commemora,tiv( tablets which do not exceed 20 .square feet in area when made a permanent in- tegral part of a building. b. Educational signs not exceeding 10 square feet � q providing bulletin or poster display space, identifying or explaining local history or. processes going on out of sight within the building. PROJECTIONS BEYOND ', PROPERTY LINE: There should be no projections beyond the property line other than as 'described below: 1. Sun protection/weather protection devices may be permitted only in the form of awnings on existing buildings. Awnings shall be operable or. retractable, and they shall be of convas on metal frame. Awnings should have a minimum slope of twenty degrees (200) to the horizontal. Awnings should be located no higher than sixteen feet (16') and should extend no lower than eight feet (8').! Awnings.should be designed in a way to appear an integral part or the building facade design, � r +I DESIGN ESi N GUIDELINES PACE FOUR 2. Fixedlcanopies or marquees are not recommended. but will be considered on an individual basis. 3. Overhanging signs as described above may be used. 4. Individual wall lighting fixtures projecting beyond property lines -may be used providing that fixtures are consistent with the period of the design of the building facade; that the total wattage per fixture does not emit glare,or harsh bright spots; that the fixture is mounted no lover than six feet six inches (6' 6") nor higher than nine feet (V 0") above ehe elevation of the Ground Floor; and provided that the fixture extends from the property line not more than sixteen inches (16") nor have any dimension greater than sixteen inches (16"). GENERAL: 1. Uses: 'Nothing contained in this article shall effect the present use of any property therein. Use classifications for all property included within the district are governed by the Zoning Ordinance of the City of 'Hopkins and the procedures therein established. 2. Other Standards: These guidelines are recommended for use a a supplement and complement to the Building and housing Codes of the Ctiy. Nothing contained herein shall be construed as repealing the applicability of any provision of the Building Codes. Instead, the design guidelines are in addition to such standards as are set forth in the Building Codes of the City of Hopkins. 2/84 GUIDELINES FOR APPLICATION APPROVAL Thank you for your inquiry regarding the City of Hopkin's Commercial Rehabilitation Loan Program. The program is designed to provide an incentive to businesses to upgrade and rehabilitate their businesses properties. Below, I have provided you,with a list of steps necessary to process your Commercial Rehabilitation Loan application. I have enclosed a copy of the guidelines and the City application forms. A. Initiate',Review of Project 1: The interested building owner meets with the HRA staff (City Hall, 035-8474) and/or the local lending institution to discuss the proposed project and obtain application forms. The HRA staff will coordinate all steps of the application process. Copies of the program regulations and design guidelines will be provided to the applicant. 2. Preliminary draft plans and drawings should be completed for review and provide to City staff. These drawings are required to be completed by an architect or design professional.i, 3. Preliminary Bank Review During the above review of the plans, the applicant will meet with a lending institution to discuss th,e project and arrange for preliminary interest in participating. Please have the bank you intend to work with call me regarding this project. If you are not using a bank for you matching share, the City will direct you to an appropriate lending institution to review your application. 4. The drawings, plans, specifications and statements will be reviewed by the City Building Official, the City Planner, and the HRA staff. They will recommend approval or state conditions they require for approval, in writing, to the applicant. 5. An inspection of the area of the building which is being rehabilitated will be completed by the Chief Building Inspector. The inspector will provide in writing the comments and orders noted to the applicant and staff. 6. Final bank approval for the project will be obtained. 7. Assuming all reviews are acceptable, the application will be presented to the HRA Board for final approval. 8. Upon receiving Board approval, the HRA will submit an approval letter to the bank regarding your project. 9. Document Preparation - The lender arranges the loan according to, normal procedures for the institution. If the loan is approved, a bank commitment letter indicating loan amount, interest rate, security & collateral, and terms will need to be submitted to the HRA. 10. Prior to, providing applicant with final authorization, applicant must secure a building permit from inspections. 11. A city check will than be requested to be issued on the loan amount. 12. Closing- Once the City's check is received, it shall be deposited with the participating bank and an escrow account shall be set up with release of funds subject to City approval as work is completed. No funds shall be advanced without City',approval. 13. Draws - I submit the p4 the contract( inspecting a completed ani aware that nc approval. 1raws can be made on a monthly basis. Please y request, which should include an invoice from r to me, and I will have a City Inspector 'and chitect verify that the work has been properly authorize the release of funds. Please be funds may be advanced without City and Bank 14. You _should not start anv'work before closed. Any,work started before City and Bank approval will ' be ineligible for financing under the Commercial Rehabilitation Loan Program. 15. Repayment of the principal and interest to the City begins one month after completion of the project. Interest is payable monthly during the interim construction period. If you have any further questions, please call me at 935- 8474. Sincerely, City_ of Madelia TEL:507-642-8556 Jul 08 92 11:48 No.005 P.02 MADELIA REVOLVING LOAN FUND FOR ECONOMIC DEVELOPMENT 1. EUREQ3 IT 15 THE PURPOSE OF THIS DOCUMENT TO ESTABLISH A LOCAL, REVOLVING LOAN FUND FOR ECONOMIC DEVELOPMENT FOR THE CITY OF MADELIA. 2L:"_Td�ElkN� THE CITY OF MADELIA RECOGNIZES THE NEED TO STIMULATE PRIVATE SECTOR INVESTMENT INTO MANUFACTURING FACILITIES AND EQ01PMENT IN ORDER TO CREATE NEW .SOBS AND RETAIN EXISTING JOBB FOR LOCAL RESIDENTS AND BOOST PRODUCTIVITY; TO PROVIDE Ar+ FORDADLE LOANS FOR EXPANS 10H AND/OR REHABILI'T"IATON OF COMMERICAL AND DETAIL BUILDINGS IN ORDER TO MAINTAIN THE COMMERCIAL VIABILITY OF MADELIA'S CENTRAD BUSINESS DI`3TRICT. 3. T+.C:UN()f Ifr I)T+� Ij:T.C)I'Mr:N'I' REVOLVING LOANS CAN BE USED FOR LAND ACQUI STION, BUILDING CONSTRUCTION, MACHINERY. EQUIPMLNT AND FIXTURES, INVENTORY, RENOVATION AND MODERNIZATION OF BUILDINGS, VXTERIOR RENOVA'T'ION OF RETAIL, COMMERICAL, AND INDUSTRIAL, BUILDINGS, OR PUBLIC INFRASTRUCTURE NEEDED FOR ECONOMIC DEVELOPMENT EXPANSIONS ANY PRC)JECT MEETING TME DEFINI'T'ION IN THE ABOVE PARAGRAPH AND LOCATED WITHIN THE CITY LIMITS OF MADELIA IS ELIGIBLE', TO APPLY FOR AN ECONOMIC DEVELOPMENT REVOLVING LOAN. A. EXPENDITURES FOR THE CONSTRUCTION AND/OR RENOVATION OF XESIDENTAL UNITS. B. WORKING', CAPITAL, OR THE RRYINANCING OF EXISTING DEBT. 4. MINIMUM LOA13 AMOUNT WILL BE $ 2,000.00 AND THE MAXIMUM AMOUNT WILL, BE $ 10,000.00. IF THE TOTAL PROJECT COST IS OVER $ 60,000.00, THE LOAN AMOUNT CAN BE 20% OF THE TOTAL PROJECT COST UP TO A MAXIMUM OF $ 35,000-00- A 5,000,00.A LOAN CANNOT EXCEED 00% OF 'T'HE ESTIMATED MARKET VALUE OF THE PROPERTY UPON COMPLETION OF THE PROJECT, LESS THE OUTSTANDING BALANCE OF ANY PRIOR MORTGAGE& City_ of Madel is * * RATIO OF PRIVA'T'E FUNDS TU MADELIA ECONOMIC DEVELOPMENT 'REVOLVING LOAN FUNDS (MINIMUM THRESHOLD: $ PRIVATE FUNDS FOR $ 1. MAllXb1A ECONOMIC DXVE1DPMtNT REVOLVING LOAN FUNDS). ** SUF F I C T'E'NT CAS U FLOW TO COVER PROPOSED DEBT SERVICE AS DEMONSTRATED BY FINANCIAL STATEMENT:' AND PROJECTIONS. ** BUSINESSES TO BE ASSISTED MUST SHOW A POSITIVE NET WORTH. TEL:507-642-8556 Jul 08 92 11:49 No.005 P.03 **** LETTER 'UF COMMI'T'MENT FROM APPLICANT PLEDGING TO COMPLETE THE PROJECT DURING PROPOSED PROJECT DURATION, IF THE LOAN ' APPLICATION 15 APPROVED. **** LETTER OF COMMITMENT FROM REGULATEDFINANCIAL INS'T'ITUTION',STATING TERMS AND CONDITIONS OF THEIR PARTICIPATION IN PROJECT, IF APPLICABLE, **** SUFFICIENT COLLATERAL. C. ALL OTHER INFORMATION AS REQUIRED IN THE APPLICATION'' AND/OR ADDITIONAL, INFORMATION AS MAY BE REQUESTED BY THE STAR CITY FINANCE COMMITTEE OR THE MADELIA CITY COUNCIL. D. PROJECT COMPLIANCE!. WITH ALL CITY CODES AND POLICIES. E. P,ROORAM OBOECTIVES - THE APPLICANT MUST MEET ALL REVOLVING LOAN FUND CRITERIA AND DEMONSTAT'E BOW THE PROPOSED ACTIVITIES WILT. MEET AT LEAST ONE OF THE FOLLOWING OBJECTIVES. 1.'', JOB CREATION AND/OR RETENTION. 2 MEET ANY CITY APPROVED ECONOMIC OR ANT PLANS. ,3.'' PREVENTION OR ELIMINATION OF KtMS AND BLIGHT. & INCREASING LOCAL TAX BASE. 5 REQUIRED COMPLIANCE WITU AN EXISTING BUILDING CODE VIOLATION. City of Madelia TEL:507-642-8556 Jul 08 92 11:49 No.005 P.04 THE INTEREST. RATE FOR ANY LOANS WILL BE NEGOTIATED, FINANCING TERMS WILL NOT EXCEED TEN (10) YEARS FOR LAND AND BUILDINGS AND SEVEN (7) YEARS FOR MACHINERY, EQUIPMENT AND FIXTURES. 5. REGULAR'IONS_F0R_INL'RVEME TE ALL BUILDING CONSTRUCTION OR RENOVATION IS TO BE BROUGHT INTO CONFORMANCE WI'T'H CITY CODES AND POLICIES. REPAIRS MAY INCLUDE '',THE FOI..LOWING SYSTEMS AND PORTIONS OF REAL PROPERTY. A. MECHANICAL, HEATING, PLUMBING AND ELECTRICAL. B. STRUCTURAL - INCLUDING THE FACADE OF THE STRUC'T'URE AND ENERGY RELATED IMPROVEMENTS. APPLICANT MUST BE ABLE TO SECURE THE LOAN WITH AT LEAST A JUNIOR MORTGAGE UPON THE BUILDING AND/OR ASSETS INVOLVED, OR OTHER APPROVED COLLATERAL. APPLICANT MUST DEMONSTRATE THE: FINANCIAL, MEANS TO REPAY THE LOANS AS DETERMINED BY TIME STAR CITY FINANCE COMMITTEE. THE APPLICANT MUST DEMONSTRATE THAT THE ASSETS INVOIVED ARE; INSURED'' FOR AN AMOUNT NOT LESS THAN TOTAL OUTSTANDINGI LOANS. 7. NO PROJECT 'MAY COMMENCE; UNTIL THE CITY OF MADELIA TIAL+ APPROVED THE: LOAN APPLICATION. ANY COSTS INCURRED BEFORE THE 'IIOAN APPLICATION HAS BEEN APPHOVED ARE NOT ELIGIBLE EXPENDITURES. NO R11ILDINC CONSTRUCTION MAY COMMENCE UNTTL THE REQUIRED CI'T'Y PFRMITS ARE SECURED, THE APPLICANT WILL BE RESPONSIBLE FOR ALL LEGAL, RECORDING AND OTHER FEES REQUIRED FOR PERFECTING A SECURTY INTEREST IN A LOAN. City of Madelia TEL:507-642-8556 Jul 08 92 11:50 No.005 P.05 B. MGEM&��_�?���L��E�^E9�..�P��►���� _Q�1��d�Pk��Y�I� A) APPLICATION AND REVIEW 1. AN INTERESTED LOAN APPLICANT WII.1, MEET WITH THE MADELIA 'CITY STAFF TO OBTAIN INFORMATION ABOUT THE MADELIA ECONOMIC DEVELOPMENT' REVOLVING LOAN FUN", DISCUSS THE ''PROPOSED PROJECT AND OBTAIN APPLICATION FORMS . 2. A COMPIXTED APPLICATION FORM to FORM OF WHICH IS ATTACHED ',fIERETO) , TOGETHER WITH A PROCESSING FEE EQUAL TO 1% ';OF THE AMOUNT REQUESTED, MUST BE SUBMITTED TO TILE CITY '',OF MADELIA PRIOR TO REVIEW ANIS CONSIDERATION. THE FEE IS USED TO COVER CITY EXPENSES FOR PROCESSING SAID APPLICATION AND WILL. BE REFUNDED UPON APPROVAL OP THE LOAN, IF THE LOAN IS NOT APPROVED, FEE IS NOT REFUNDED. 3. THE APPLICATION IS REVIEWED BY THE CITY STAFF TO DETERMINE TUT IT CONFORMS TO ALL CITY POLICIES AND ORDINANCES AND TO CONSIDER THE FOLLOWING A. ,THE AVAILABILITY AND APPLICABILITY OF OTHER GOVERNMENTAL, GRANTS AND/OR LOAN PROGRAMS. B. WHETHER THE PROPOSED PROJECT WILL RESULT IN CONFORMANCE'WITH THE BUILDING AND ZONING CODES. B.) PROJECT REVIEW I. THE MADELIA STAR CITY FINANCE COMMITTEE WILL REVIEW EACII APPLICATION IN TERMS OF ITS CONSISTENCY WITH THE GOALS OF THE MADELIA ECONOMIC DEVELOPMENT PLAN AND IN RELATION TO THE PRO.IECT- S IMPACT ON THE MADELIA ECONOMIC COMMUNITY, 2. THE MADELIA STAR CITY FINANCE COMMITTEE WILL. ALSO EVALUATE THE PROJECT APPLICATION IN TERMS OF THE FOLLOWING: ; A. PROJECT DESIGN - EVAI.,UATION OF PROJF,CT DESIGN WILL INCLUDE REVIEW OF THE PROPOSED ACTIVITIES, TIME LINES, ANT) CAPACITY TO IMPLEMENT. B. FINANCIAL FEASIBILITY - AVAILABILITY OF FUNDS, PRIMATE INVOLVEMENT, FINANCIAL PACT.AGING AND COST EFFECTIVENESS City of Madelia TEL:507-642-8556 Jul 08 92 11:50 No.005 P.06 9. THE STAT CITY FINANCE COMMITTEZ WILL SEND IT'S RECOMMENDATION TO THE MADELIA CITY COUNCIL FOR FINAL REVIEW AND APPROVAL. 10. THE ABU'VE CRITERIA WILL RE REVIEWED ON AN ANNUAL BASIS. THIS hof},VOLV I'NG LOAN FUND CRITERIA WAS AMP'1 ED THIS 27TH DAY OF APRIL 1987 AND AMENDED ON THE 11TH DAY of FEBRUARY 1991. PURPOSE: To stimulate private sector investment in order to create new jobs and retain existing jobs and to provide affordable loans for expansion and/or rehabilitation of commercial and retail buildings in the central __business _district. PROJECT ELIGIBILITY: Land Acquisition Building Construction Machinery Equipment Fixtures Inventory Renovation and modernization of buildings Exterior renovation of retail, commercial, and industrial buildings Public infrastructure expenditures PROGRAM OBJECTIVES: one of the following objectives must be met: 1. Job creation or retention 2. Meet any city approved economic or redevelopment plans 3. Prevention or elimination of slum and blight 4. Increasing local tax base 5. Required compliance with an existing building code violation LOAN AMOUNT: Minimum loan amount will be $ 2,0001.00 and the maximum amount will be $ 10,000-00. I€ the total project cost is over $ 50,000.00, the loan amount can be 20% of the total project cost up to a maximum of $ 15,000-00. INTEREST RATE --Rate is negotiated on an -individual basis. FINANCING TERMS: 10 Years maximum on land and buildings. 7 Years maximum for machinery► equipment, and fixtures PROCESSING FEE: 1% of the amount requested If the loan is approved the fee is refunded PROJECT REVIEW: Loan application will be reviewed by the Madelia Star City Finance Committee prior to the recommendation being made to the Madelia City Council APPLICATION FORMS: Application forms are available at City Hall during normal business hours FUND CRITERIA: A maximum of 90% of the market value of the project and a ratio of $ 2.00 private funds to $ 1.00 in loan funds. A detailed document explaining the program criteria is available at City Hall during normal business hours. City of Madelia TEL:507-642-8556 Jul 08 92 11:51 No.005 P.08 Ey z 1 N O h! Ln iV w r� (A N Jul 08 92 11:51 No.005 P.08 Ey z City of Madelia TEL:507-642-8556 Jul 08 92 11:51 No.005 P.09 MADELIA._._REVOLVING LOAN FUND APPLICATION APPLICANT ADDRESS S CITY STAVE - ZIP CODE CONTACT PERSON (S) BUSINESS PHQNJ� HOME PRONE. AMOUNT REQUESTED TERMS REQUESTED SOCIAL SECURITY NUMBER FED TAX ID # STATE TAX ID t 1« Type of Project: Con$tructian/News Business Expansion/Existing Business Equipment/Machinery/Fixtures Remodel/Commercial Retail /Industrial Other 2. Describe Project: Page 4 1 City of Madelia TEL:507-642-8556 Jul 08 92 11:52 No.005 P.10 MhDELIA REVOLV i ING LOAM rUXD APPLICATION PACE j 2 3. Purpose of Loan; 4. ---------- Cost of Project: A) Land B) Buildings :,(attach plans & costs) C) Equip. /Mac4./Fixtures (Attach list & costs) D) Remodeling (attach plans a costs) E) other (attach description) F) Other (attach description) $ TOTAL COSTS 5. Proposed Vinancing: SOURCE NAME TERMS AMOUNT A) State Grant/Loan B) Fed Grant/loan C) Bank Loan D) Bank Loan U) other Priv4te F) Other G) This Loan M. Revolving Fund H) APPLICANT CONTRIBUTION TOTAL FINANCING City of Madelia TEL:507-642-8556 Jul 08 92 11:52 No.005 P.11 4 hiADELIA REVOLV111G LOAN FUND. APPLICATION Page t 3 6. Collateral' to be assigned (Describe and show lien position): A) To State, E) To Federal'', Government C) To Bank_ _— D) To Hank E) To Private F) To others G) To This Loon Fund 7. Value of Collateral: *If loan is for Joky Retention Orly, Explain in Business Plan. 9. Attorney, Accountant (Names, addre'sss,phone): 10. Bank an& Other References (names, addresses, phone): COST BOOK VALUE EXISTING LIENS A) Land $ S S B) Buildings C) Mach. 6 Equip. $ $ $ D) Other E) Other $ S $ 8. *Employment: Present Number of Employees Total Payroll -- After Project''',* of Employees Total payroll_ _ *If loan is for Joky Retention Orly, Explain in Business Plan. 9. Attorney, Accountant (Names, addre'sss,phone): 10. Bank an& Other References (names, addresses, phone): pity of Madelia TEL:507-642-8556 Jul 08 92 11:52 No.005 P.12 • MADELIA REVD VING LOAN FUND PAGE 4 11. Attach and include the following: A) Written Business Plan: 1 ownership 2.''' bate established 3.', Description of business C Products/Services S. Management 6. Future Plans B) Financial Statements for past Two Years C) Financial Projections for Five Years'* D) Resume of Owner/Management E) Personal Financial Statements of proprietor, partners, guarantors F) Letter of commitment from applicant pledging to complete during the proposed project duration G) Utter of commitment from the other sources of financing, stating terms and conditions of their participation in this project. H) Other I) Other 3) Fee (1% of amount of loan request, refundable upon approval of the application,- NON REFUNDABLE if -thy: loan is not approved.) +" If under $15,000.00 - Three Year projection will be required. City of Madelia TEL:507-642-8556 Jul 08 92 11:53 No.005 P.13 =W E1.IA Rvt7r%T vYNG T -^X J FUND ] V1'LIGAT7CN PAGE 5 MAD 3/we certify that all information pxovided in this application, is true and correct to the best of my/our knowledge. I/vie authorize the',City of Madelia and the Star City Finance Committee to check credit references and verify financial and other information. I/We agree to provide any additional information as may be requested by the City of Madelia and the Star City'IFinance Committee. DATE Applicant riamC Signature of ,Applicant