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
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TITLE IN NAME OF Y Description & Location Acquired Cost of Real Estate I Ins. Carried Bol. Due I Payment Maturity To Whom PoXoble
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PROPERTY COVERED Dote yrn Y Bolonce Due
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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
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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
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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.
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signage, use of colors, and window replace-
ment. -Funding is also available for -interior
renovations.
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• The building must be located within the
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• The building may not be one which has
been identified by the HRA or City for
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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
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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.
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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
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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
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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