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HomeMy WebLinkAboutV - Community Dev. Funding DATE: BACKGROUND: DISCUSSION: ALTERNATIVES: STAFF AGENDA REPORT V A,B,C,D 86 BONITA J. CARLSON, ASSISTANT CITY MANAGER..' G) CONSIDER APPROVAL OF THE COMMUNITY EVELOPMENT FUNDING APPLICATION TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT MAY 22,1995 The Minnesota Trade and Economic Development Department administers Economic Recovery Fund, a small business fund where a city may apply for a grant on behalf of a developer. If granted, the city offers a loan to the developer. Upon loan repayment to the city the interest and principal can be used for other economic development purposes. The Ed Malone project is the first project in the City of Prior Lake to qualify for funding for Economic Recovery Assistance. The City has made a preliminary application for funding. The documents presented in this agenda item are required to complete the application for funding. The application was prepared by Roger Guenette, Advanced Resources, and he will be available to answer questions regarding the application. 1. Approve application for an Economic Recovery Grant and associated documents 2. Deny approval of grant application RECOMMENDATION: Alternative # 1. ACTION REQUIRED: Motion and second to adopt Resolution 95-31 Authorizing the City of Prior Lake to act as legal sponsor for EM Products. Motion and second to adopt Resolution 95-31 Statement of Residential Anti-displacement, Relocation Assistance and Displacement Minimization. Motion and second to approve the Community Development Housing Needs Certification. .....;, Motion and second to approve the Revolving Loan Fund Plan. /----- - I:\C..Q~ClWAG52295~.DOC 16zuO tagle creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER RESOLUTION 95-31 RESOLUTION AUTHORIZING THE CITY OF PRIOR LAKE AS THE LEGAL SPONSOR FOR E.M. PRODUCTS, INC. FOR PROJECTS CONTAINED IN THE BUSINESS AND COMMUNITY DEVELOPMENT APPLICATION MOTION BY: SECONDED BY: WHEREAS, the City of Prior Lake act as the legal sponsor for project(s) contained in the Business and Community Development Application to be submitted on May 22, 1995 and that Mayor Lydia Andren is hereby authorized to apply to the Minnesota Department of Trade and Economic Development for funding of this project on behalf of the City of Prior Lake. WHEREAS, the City of Prior Lake has the legal authority to apply for financial assistance; and the institutional, managerial, and financial capability to ensure adequate construction, operation, maintenance and replacement of the proposed project for its design life. WHEREAS, the City of Prior Lake has not incurred any costs, has not entered into any written agreements to purchase property. WHEREAS, the City of Prior Lake has not violated any Federal, State, or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. WHEREAS, upon approval of its application by the State the City of Prior Lake may enter into an agreement with the State of Minnesota for the above-referenced projects(s), and that the City of Prior Lake certifies that it will comply with all applicable laws and regulations as stated in all contract agreements and described on the Compliances Section (FP-20) of the Business and Community Development Application. WHEREAS, the City of Prior Lake has obtained credit reports and credit information from E.M. Products, Inc. and Ed Malone. Upon review by the City of Prior Lake and City Attorney Glen Kessel, no adverse findings or concerns regarding, but not limited to, tax liens, judgments, court actions, and filings with state, federal and other regulatory agencies were identified. Failure to disclose any such adverse information could result in revocation or other legal action. NOW, THEREFORE BE IT RESOLVED that Mayor Lydia Andren is hereby authorized to execute such agreements as are necessary to implement the project(s) on behalf of the applicant. Passed and adopted this 22nd day of May, 1995. YES NO Andren Greenfield Kedrowski Schenck Scott Andren Greenfield Kedrowski Schenck Scott Frank Boyles City Manager City of Prior Lake 16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER RESOLUTION 95-43 RESOLUTION ADOPTING A RESIDENTIAL ANTI-DISPLACEMENT, RELOCATION ASSISTANCE AND DISPLACEMENT MINIMIZATION POLICY (FP-180) WHEREAS, the City of Prior Lake has approved a Business and Community Development application to the State of Minnesota Department of Trade and Economic Development; WHEREAS, the Minnesota Department of Trade and Economic Development requires the City adopt a residential anti-displacement, relocation assistance and displacement minimization policy (FP-180) WHEREAS, the City of Prior Lake Residential Anti-displacement, Relocation Assistance and Displacement Minimization Plan is as follows: A. The City will replace all occupied and vacant livable low/moderate income dwelling units demolished or converted to a use other than as low/moderate income housing in connection with an activity assisted with funds provided under the Housing and Community Development Act of 1974, as amended. All replacement housing will be provided within three years after the commencement of the demolition or conversion. Before entering into a contract committing the City to provide funds for an activity that will directly result in such demolition or conversion, the City will make public and submit to the Minnesota Department of Trade and Economic Development. Business and Community Development Division the following information in writing: 1. A description of the proposed assisted activity: 2. The location on a map and number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as low/moderate income dwelling units as a direct result of the assisted activities: 3. A time schedule for the commencement and completion of the demolition or conversIOns: 4. The location on a map and the number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units. If such data are not available at the time of the general submission, the City will identify the general location on an area map and the approximate number of dwelling units by size and provide information identifying the specific location and number of dwelling u.nits by size as soon as it is available: 5. The source of funding and a time schedule for the provision of replacement dwelling units: - 1 - 16200 Eagle Creek Ave., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER N:\BDC\RESANTID.DOC 6. The basis for concluding that each replacement dwelling unit will remain a low/moderate income dwelling unit for at least 10 years from the date of initial occupancy: 7. Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units (e.g., a 2-bedroom unit with two I-bedroom units) is consistent with the housing needs of low- and moderate-income households in the jurisdiction. The City may request the Minnesota Department of Trade and Economic Development to recommend that the U.S. Department of Housing and Urban Development approve an exception to required replacement housing if there is an adequate local supply of vacant low/moderate income dwelling units in standard condition. Exceptions will be reviewed on a case-by-case basis. B. The City will provide relocation assistance to any lower income person displaced by demolition of any dwelling unit or the conversion of a low/moderate income dwelling unit to another use in connection with an assisted activity. C. Consistent with the goals and objectives of activities assisted under the Act, the City of Prior Lake will take the following steps to minimize the displacement of persons from their homes. 1. Enforcement provisions of Uniform Relocation Act. D. Definitions for the purposes of this plan are as follows: "Low/moderate income dwelling unit" is a unit with a market rent, including utility costs, that does not exceed the applicable fair market rent for existing housing and mode~ate rehabilitation, as established under the Section 8 existing housing program. "Vacant livable dwelling unit" is a vacant unit that is in standard condition; or in substandard condition, suitable for rehabilitation; or in dilapidated condition and occupied less than a year from the date of the grantee agreement. "Livable dwelling unit" is a unit that is in standard condition or has been raised to a standard condition from a substandard condition, suitable for rehabilitation. "Standard livable dwelling unit" is a well built unit with adequate space for persons living there. There are no major defects in the structure and only minor maintenance is required. Such dwelling will have the following characteristics: reliable roofs; sound wells and foundations; adequate and stable floors, walls and ceilings; surfaces and woodwork that are not seriously damaged nor have paint deterioration; sound windows and doors; adequate heating, plumbing, and electrical systems which do not present safety hazards; adequate insulation for local climatic conditions; and is in compliance with local building and housing codes. "Substandard condition dwelling unit, suitable for rehabilitation; will show a lot of deferred maintenance with permanent damage to structural items. Conditions contributing to substandard dwelling, include but are not limited to sagging, cracked, rotting or leaking roofs, walls, foundations, ceilings, floors, doors, and windows; deteriorated surfaces and - 2- N:\BDC\RESANTID.DOC woodwork; unreliable heating, plumbing, or electrical systems which present safety hazards or inadequate insulation. The cost of rehabilitation of the unit should be determined as economically feasible. RESOLUTION OF ADOPTION OF RESIDENTIAL ANTI-DISPLACEMENT, RELOCA TION ASSISTANCE AND DISPLACEMENT MINIMIZATION PLAN. NOW, THEREFORE BE IT RESOLVED THAT CITY OF PRIOR LAKE HEREBY ADOPTS THE RESIDENTIAL ANTI-DISPLACEMENT. RELOCATION ASSISTANCE AND DISPLACEMENT MINIMIZATION PLAN FOR CITY OF PRIOR LAKE. I certify that the above resolution was adopted by the City Council of Prior Lake on May 1, 1995 YES NO Andren Greenfield Kedrowski Schenck Andren Greenfield Kedrowski Schenck Frank Boyles City Manager City of Prior Lake - 3 - V' <~-- COMMUNITY DEVELOPMENT HOUSING NEEDS CERTIFICATION As authorized by the Prior Lake City Council, hereby certify that the City of Prior Lake has completed a Housing and Community Development Needs Assessment. A complete record of the process and findings is on file at Prior Lake City Hall. Below is a summary of our findings: The City of Prior Lake has participated in several planning processes involving community residents and businesses in order to determine needs and strategies for addressing housing and community development issues. Among the studies which the City has undertaken are the "Comprehensive Plan" and the "Need for and Location of a Business/Office Park". Both of these efforts entailed community meetings and public hearings to solicit input strategies for establishing policies and implementing development initiatives. Specific issues which were identified in regard to housing and community development needs include: . Provide affordable housing for low/moderate income persons . Expand infrastructure system to enable residential, commercial and industrial development . Maintain economic viability of downtown area . Develop appropriate sites for industrial and corporate businesses to expand . Redevelop PriorDale Mall Following is a summary of significant strategies to meet local housing and community development needs: Strategies: Ways to meet the above needs. . Encourage developers to meet needs for affordable housing for low/moderate income persons through the use of programs such as MHF A financing and Scott HRA Administrative programs. . Implement expended capital improvements program to extend infrastructure in support of residential, commercial and industrial development. . Coordinate efforts on behalf of downtown merchants to increase consumer awareness of exiting businesses. . Establish business/office park. . Work with owner of PriorDale Mall and/or other potential developers to pursue redevelopment strategies. Mayor Date 16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER PRIOR LAKE REVOLVING LOAN FUND PLAN I. Program Elements A. Goals and Objectives 1. The RLF will be used to assist businesses which will create jobs and alleviate economic distress or address other urgent community development needs. 2. To leverage private investment and provide debt financing to projects that otherwise may not occur; especially, to leverage financing for development or redevelopment resulting in the prevention or elimination of slums and blight. 3. To stimulate development for the purpose of job creation with specific empha- sis on benefits to low and moderate income individuals. B. Identification of the Areas Financing Problems Like many communities, businesses in Prior Lake have difficulty securing capital to undertake development ventures. Due to poor returns in distress sale situations area lenders are reluctant to make loans in excess of 50-70% of value. In addition to conservative loan to value ratios area lenders are reluctant to provide long-term financing, even if the proceeds of the financing are to be used for the purchase of long-term fixed assets. These issues are magnified for firms that are embryonic or do not have a long history of operations and profitability. C. Targeting Criteria Requests for loans from the RLF are expected to be many and diverse. The use of the fund should therefore be directed to those businesses which will do the most to solidify and strengthen the economic base of the area, provide permanent full-time employment to persons who are unemployed/underemployed. In its marketing and review process, the RLF will target the following and give funding priority to them. 1. Manufacturing and distribution businesses which serve to diversify the local economy or add value to products. These businesses tend to build on existing resources, diversify and strengthen the economy (manufacturing and distribution). These businesses can also serve as magnets for other business- es especially in the service sector. 2. Businesses with a high number of full-time permanent jobs at good wages. This meets with the goal of increasing employment for under/ unemployed persons and raising the average income. 3. Loans will not be made for retail or commercial activities. Loans to retail businesses may harm existing retailers and, thus not constitute a wise use of public funds. 4. Businesses that provide jobs to persons who are currently unemployed or underemployed. Applicants will be urged to work with Job Training Programs to help persons qualify for available jobs. Again, the goal is full-time perma- nent employment. 5. Businesses owned by minorities, women, and Vietnam era veterans. These persons historically have had difficulty locating capital for business start up and expansion. D. Standards for the RLF Portfolio The RLF portfolio taken as a whole will meet the following standards. At times individual loans may vary from these standards due to highly unusual circumstances or overriding factors which make deviation a necessity. Following are the minimum standards for the RLF portfolio: 1. A minimum ratio of $15,000 in RLF proceeds per job created or retained. 2. Requirement that 51 % of all the jobs to be created through the use of RLF proceeds will result in the hiring or be made available to low and moderate income individuals pursuant to 24 CFR Part 570.208 (a)(4). The determination of income levels will be pursuant to HUD Section Eight guidelines. 3. Job creation with the RLF will be directed toward skilled craft-persons and technicians; semi-skilled workers; and service trade industry workers, rather than part-time or minimum wage jobs. 4. The requirement that $2 of private sector funding be contributed for every dollar of RLF funds. The private funding is defined as financing from banks, investment companies or private investment on the part of the borrower for other firms as a result of the RLF loan. Private funding does not include city, state, or other public funding. 5. RLF funds may be used for acquisition of land, construction or rehab of manufacturing/warehouse facilities, site improvements, professional fees, utilities or infrastructure, purchase of machinery and equipment and working capital. 6. Eligible businesses must be a "for profit" business. No loans will be made for commercial/retail activities. 7. The RLF will strive to encourage the development of the following types of enterprises: Minority owned businesses. Women owned businesses. Businesses owned by Vietnam era veterans. Businesses owned by physically handicapped persons. Business which propose to use loan proceeds for pollution abatement and energy conservation. a. Prior to approval of a loan request the RLF Board will make a determination that the proposed loan is deemed necessary or appropriate pursuant to HUD guidelines as detailed on the attached Exhibit A. This determination must be evidenced through a written analysis that is to accompany any request or recommendation for approval by the RLF Board. 2 E. Financing Policies 1. A minimum loan size of $15,000 and a maximum loan size of $100,000. It is anticipated that the average size of subsequent loans will be approximately $25,000 - $50,000. 2. RLF funds are to be used for fixed asset purchases. Loan guarantees will not be made. 3. Loan terms for fixed assets are anticipated to range between 10-20 years for land and building and 7-10 years for machinery and equipment. 4. Interest rates are to be negotiated ranging from four percentage points below the current money center bank prime rate as quoted in the Wall Street Journal but no less than 4% or the maximum interest rate allowed under state law. 5. The RLF Board may provide deferments on principal repayments and subordi- nation of loans to meet the credit needs of borrowers. 6. The minimum equity requirement for participation on an RLF loan is equal to 10% of project costs. It is the intention of the RLF Board to secure each loan with a first or second mortgage on real estate or a UCC filing on equipment, inventory and/or receivables. 7. RLF loans will only be restructured if the restructuring improves the borrowers repayment ability. 8. While the RLF Board is prepared to consider long-term loans, attempts will be made to structure debt in such a manner as to encourage prepayment or early recapture of the proceeds. One method that this may accomplished is to provide a 5 year term with a 20 year amortization period and work with the borrower to find private sources of capital to replace the RLF loan at the end of the initial term. 9. Interest earnings or other profits earned from the sale of loan will be returned to the RLF fund for relending. An exception to this is that the RLF Board may authorize that up to 25% of the interest earnings or profits may be utilized for administrative costs. 10. The RLF Board may charge a 1.5% loan origination fee to borrowers partici- pating in the RLF program. The use of these funds will be to pay the costs associated with the preparation and structuring of applications and related costs such as accounting to conduct an appropriate review of such applica- tions. Borrowers are also responsible for associated legal fees relating to closing the RLF loan. 11. The RLF Board will require that proposed borrowers provide bank turn down letters and bank commitment letters evidencing the limitation of private capital to their project. 12. Applicants to the RLF fund must also provide evidence of their attempts to utilize and coordinate the use of other public funding sources such as SBA, tax increment financing and other state or local programs. 3 F. Related Activities 1. Technical and management assistance. The RLF Board will provide technical and management assistance to existing or start-up companies by referring them to appropriate organizations such as the Small Business Management Program or Small Business Development Center. These organizations all have professionally trained staff that can provide technical and management consultation to business owners and their executives. 2. Loan packaging. Companies seeking assistance with loan packaging services may be aided by the RLF staff and/or other appropriate public or private sources including Small Business Administration, Prior Lake Business Develop- ment Committee, Minnesota Department of Trade and Economic Development or private consulting firms. 3. Linking jobs to the long-term unemployed. The RLF Board will work closely with the State of Minnesota's Department of Jobs and Training Offices to ensure that recipients of RLF loan proceeds receive referrals with a placement of unemployed and underemployed individuals. In addition the Job Training Offices and the area Vocational Technical Institute can provide other benefits to these companies by identifying and designing specialized training programs to meet both the needs of the companies and their employees. II. Administrative Elements Of The Plan A. Loan Administration Board The Loan Administration Board will consist of representatives of the Prior Lake Business Development Committee who will serve as the board of directors and the loan review committee. These directors are appointed by the Prior Lake City Council. The duties of the RLF board and loan review committee are as follows: 1. Review and approve or deny all applications for loans under the terms of this program. 2. From time to time, amend the RLF program rules as required by necessity. 3. Report to the City Council. B. Staff Capacity Staffing for the RLF will be provided by the City of Prior Lake. Staff duties for the fund include the following: 1. Program Marketing - Staff will market the RLF through local media, speaking engagements, literature, and business visits. The goal is to have every eligible business aware of the program. 2. Loan Structuring and Packaging - Staff will assist applicants in structuring the financial package to coordinate with loans from other programs, bank involve- ment, equity, and other necessary components. Staff will also assist appli- cants in completing the necessary form and documentation for the loan. 3. Management Assistance - Staff will assist applicants in locating additional business, financial and management training as may be needed by the business. 4 4. Linking jobs to long term unemployed - in order to insure that long term unemployed and low and moderate income persons have maximum opportunity to be considered for jobs, staff will encourage all applicants to work with the Minnesota Department of Employment Services and Local Employment and Training providers. 5. Financial Management - staff will provide all financial management of the RLF including, loan disbursements, loan servicing, audits and record keeping. The economic development staff of the City of Prior Lake is currently comprised of Bonita Carlson, Assistant City Manager and Roger Guenette and Ed Tschida, Development Consultants. All three of these individuals have received professional training in the marketing and implementation of economic development. Between them they have 40 years of experience in economic development financing, loan packaging and grant preparation/administration. C. Marketing Strategy The RLF Board will publish an announcement and hold a press conference promot- ing the RLF program. Since the initial strategy of the RLF program is to make a lump sum loan to E M Products, Inc. additional marketing and publicity will be limited until such time as loan proceeds are recaptured and available for relending. Upon the receipt of recaptured proceeds the RLF Board and staff will publicize the program through local media contacts, direct mailings to selected businesses and presentation to local business associations. D. Loan Selection and Approval Process The selection and approval processes will be as follows: 1. Pre-application A brief pre-application will be required of all potential clients in order to determine the proposed structure and eligibility of the project (see at- tached) . All pre-applications will be screened by RLF staff for eligibility and written invitations for full applications or denials will be provided within two weeks of receipt. If denied, the applicant may appeal to the Loan Review Committee. 2. Full application No form is provided. Applicants will need to meet all requirements on RLF checklist. When a full application is invited, a RLF staff site visit and discussion with the business about full application details will take place. When completed applications are received, RLF staff will conduct a thorough review including: * eligibility with RLF plan economic benefits of the proposed project balance sheet/ratio analysis repayment ability * * * 5 * management skill collateral and lien position credit risk of applicant need for special requirements, Le. insurance, personal guarantee environmental review civil rights review * * * * * RLF staff will prepare recommendation to be presented to the Loan Review Board based on its review. The Loan Review Committee reviews full application, staff recommendations and makes decision on the application. RLF staff informs applicant in writing of the Board decision. E. Loan Servicing. Loan closings will be handled by RLF staff and the Prior Lake City Attorney in conjunction with the attorney of the borrower. Loan servicing will be handled by RLF staff in conjunction with the City's Finance Department. A separate accounting system within the City's general ledger will be established. Banking services will be provided through the City of Prior Lake with separate accounts established for the RLF funds. RLF staff will monitor and keep records of all accounts in terms of repayments and special provisions. Monthly reports will be generated for all individual loans including principal, interest, fee payments, etc. Delinquency will be handled in a firm yet flexible way with provIsions for modifying or restructuring consistent with program objectives and responsible money manage- ment. Any modifications of loan terms and conditions must be requested in writing by the applicant and approved by the Loan Review Board. Defaults will be handled on a case by case basis. Specific action will depend on the nature and circumstances, amount and availability of collateral and costs versus benefit of liquidating assets or other collateral. Any action taken will be handled by RLF staff and at the direction of the Loan Review Board. F. Sources Of Funding To Cover Administrative Costs Administrative costs will be financed through application fees of 1.5% charged to the borrower and up to 25% of the interest earnings realized from RLF loans. Initial administrative costs will be financed by the City of Prior Lake. G. Capital Management Strategy As previously mentioned, the initial use of RLF proceeds will be to capitalize the E.M. Products, Inc. development. Upon recapture of those loan proceeds the RLF will have additional capital for relending. One option that may be considered is for the RLF to sell off loans in order to more quickly replenish capital. In addition to the increase in the capital account due to the return on interest the RLF board will attempt to expand the capital base by soliciting additional contributions from various public and private sources. In the event that the Prior Lake RLF has difficulty identifying enough borrowers to effectively impact the economic distress in the area the use of the recaptured RLF 6 . ~1 proceed may be reallocated for other economic adjustment purposes as allowed by HUD. To accomplish the alternative use of RLF proceeds, the Board of Directors will need to develop a Reuse Plan which includes an analysis of the economic adjustment needs for Prior Lake at that point and time and identifies the specific economic adjustment activities which would be undertaken with the proceeds. This Reuse Plan must be drafted and submitted to the regional HUD office within 36 months from the date of original grant award. Specific activities which could be identified in the Reuse Plan include the acquisition of property and infrastructure improvements to facilitate development of industrial parks, the development of specialized training programs to meet the needs of dislocated workers and other activities as allowed by HUD. H. Other Requirements 1. Civil Rights No applicant may be denied a loan on the basis of race, color, national origin, religion, age, handicap or sex. All advertisement and promotion of this program will emphasize this civil rights provision and the targeting criteria established to promote affirmative action. Borrowers from the RLF will be required to complete the Assurance of Compliance for this in ED540 and ED612. RLF will promote this provision on an ongoing basis. 2. Certificate of Non-Relocation Each applicant will be required to complete an "Employers Certificate of Nonrelocation" stating that the project for which funds are being sought will not relocate jobs from one labor market to another. 3. Historical Preservation All loans for construction must be submitted to the State of Minnesota Historic Preservation Office for review and consent. 4. Davis-Bacon All loans for construction must meet the requirements of the Davis-Bacon Act as amended (40 U.S.C. 276a-276a.5). 5. Access for the Handicapped If the RLF finances a construction project to which the public will have access, provisions for access to the handicapped must be included. 6. Flood Plains and Wetlands The Loan Review Board shall not approve loans made for construction in, or alteration of, a wetland or 100 year flood plain as determined by soils mapping, USGA studies or other accepted means if adverse effect would be caused by that construction. 7 The Loan Review Board shall not approve projects which would result in construction of other than underground utilities in the 100 year floodplain as defined by FEMA unless all capacity removed from the floodplain is restored by excavation or other appropriate means. No project shall be approved which results in the alteration of any wetland, or in any adverse impact on a wetland, without prior consultation with, an consent of the U.S. Department of the Interior, Fish and Wildlife Service. When applicable, applicants will be required to purchase flood hazard insur- ance. 7. Air and Water Quality Applicants will be required to comply with all federal, state, and local laws and regulations concerning air and water quality. All required reviews will be completed and permits issued prior to funding. 8. Environmental Review Procedure The staff of the RLF will review each application for conformance with sections E.1 through 7 above. To conduct its review, the staff will contact local (city and county) planning and zoning authorities. site specific maps and the regulations of FEMA, USGS, SCS, SHPO and other applicable agencies will also be consulted. All local, state and federal regulations must be complied with prior to granting a loan. For each loan application, the staff must make a finding of compliance or no adverse impact. If there is a finding of non-compliance, a plan for mitigation acceptable to the regulatory agency must be filed with RLF Board. RLF staff will monitor compliance with the mitigation plan. 8 1 ....-...----.-----.------..--r-----. -.-. -...-----.. PAGE 1 PRIOR LAKE REVOLVING LOAN FUND PRE-APPLICATION " NAME AND ADDRESS OF BUSINESS Type of Business Date Established Telephone No. Structure of Business: Proprietorship Corporation Partnership Business Owners Names and Addresses: 1. Title: Ownership Percent 2. Title: Ownership Percent 3. Title: Ownership Percent Describe the details of the loan you are applying for: Loan Amount: Interest Rate: Term: Collateral available and market value: Special payment terms or conditions: Are the owners of the company willing to disclose their personal financial condition and sign personal guarantees? APPLICANTS NAME (type or print): Signature of Applicant: Date of pre-application: PAGE 2 PRIOR LAKE REVOLVING LOAN FUND PRE-APPLICATION ... Briefly describe the project you are proposing and your current business activity. Indicate information on any existing financial conditions/situations which might affect the credit worthiness of the application. Also describe the reasons that you believe RLF proceeds are necessary to complete your proposed project. PAGE 3 II PRIOR LAKE REVOLVING LOAN FUND PRE-APPLICATION .> PROJECT COSTS: FUNDING SOURCES: Property acquisition $ Owners Investment $ Site Improvements Bank Renovation of an Other financial existing building institutions New Construction Other public funding Purchase machinery and equipment TOTAL $ Professional Fees Working Capital Administration Other (Infrastructure Relocation expense, etc.) TOTAL $ BANK NAME AND ADDRESS: Contact Person: Telephone Number: Job Impact (do not include owners) Jobs created Jobs retained* _ Full time year around _ Full time year around Part time Part time _ Total hours per year for all part time employees _ Total hours per year for all part time employees _ Average wage or salary _ Average wage or salary * Jobs that would be lost if this project is not funded '_<_"'"~'_"_'_""-''-'.''~~---_''_~'''''~''"'--''';'''-''-':~'''''''.'-'-<'"~""'-"~"<"~-"-""~'-"' -