HomeMy WebLinkAboutCity Council Resolution 2009-053CITY OF PLYMOUTH
RESOLUTION No. 2009-053
A RESOLUTION TO APPROVE THE ISSUANCE OF A LOAN TO ELLIOT VENTURES, LLC AND SEACOLE-CRC,
INC. THROUGH THE PLYMOUTH ECONOMIC DEVELOPMENT REVOLVING LOAN FUND
WHEREAS, THE CITY OF PLYMOUTH CREATED THE PLYMOUTH ECONOMIC
DEVELOPMENT REVOLVING LOAN FUND IN 1997 IN CONJUNCTION WITH A LOAN FROM
THE STATE OF MINNESOTA'S DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT;
and
WHEREAS, THE TERMS OF THE STATE'S LOAN PROGRAM REQUIRED THE FIRST
$100,000 TO GO TO THE CITY TO ESTABLISH ITS OWN REVOLVING LOAN PROGRAM; and
WHEREAS, THE LOAN FUND HAS A CURRENT BALANCE OF $178,406, WHICH WAS
DERIVED FROM THE INITIAL INVESTMENT OF $100,000 AND INTEREST EARNINGS; and
WHEREAS, THE CITY HAS RECEIVED AN APPLICATION FROM ELLIOT VENTURES,
LLC AND SEACOLE-CRC, INC. FOR A LOAN FROM THE CITY UNDER THE PLYMOUTH
ECONOMIC DEVELOPMENT REVOLVING LOAN FUND, TO ASSIST WITH THEIR
RELOCATION TO PLYMOUTH; and
WHEREAS, THE AMOUNT OF THE LOAN REQUESTED BY ELLIOT VENTURES, LLC,
WHICH WILL BE GAURNTEED BY SEACOLE-CRC, INC.IS IN THE AMOUNT OF $178,000
WITH AN INITIAL ADJUSTABLE INTEREST RATE OF 3.00 PERCENT THAT IS 200 BASIS
POINTS BELOW THE PRIMARY FINANCING AND WILL ADJUST IN CONJUNCTION WITH
THE PRIMARY FINANCING (WELLS FARGO MORTGAGE) FOR A TERM OF 20 YEARS, and
WHEREAS, THE LOAN TO ELLIOT VENTURES, LLC BY THE CITY WILL MEET THE
FOLLOWING OBJECTIVES OF THE PLYMOUTH ECONOMIC DEVELOPMENT LOAN FUND
GUIDELINES:
A. CREATION AND RETENTION OF PERMANENT PRIVATE SECTOR JOBS.
B. STIMULATION OF LEVERAGE OF PRIVATE INVESTMENT.
C. INCREASE LOCAL TAX BASE.
and
WHEREAS, THE LOAN TO ELLIOT VENTURES, LLC, INC. BY THE CITY FROM THE
PLYMOUTH ECONOMIC DEVELOPMENT FUND WILL MEET THE FOLLOWING CRITERIA
OF THE PLYMOUTH ECONOMIC DEVELOPMENT FUND PROGRAM:
A. PROVIDE LOANS TO CREDIT -WORTHY BUSINESSES THAT CREATE NEW JOBS.
B. PROVIDE LOANS FOR CREDIT -WORTHY BUSINESSES THAT WILL INCREASE
THE COMM[_]NITY TAX BASE.
C. PROVIDE LOANS TO BE USED AS A SECONDARY SOURCE OF FINANCING THAT
IS INTENDED TO SUPPLEMENT CONVENTIONAL FINANCING.
D. PROVIDE FUNDS FOR ECONOMIC DEVELOPMENT THAT CAN BE USED TO
ASSIST IN OBTAINING OTHER FUNDS SUCH AS SMALL BUSINESS
ADMINISTRATION LOANS
and
WHEREAS, THE LOAN BY THE CITY OF PLYMOUTH TO ELLIOT VENTURES, LLC
WILL COMPLY WITH THE PLYMOUTH ECONOMIC DEVELOPMENT FUND GUIDELINES;
and
WHEREAS, THE LOAN REQUESTED BY ELLIOT VENUTES, LLC MEET THE
FOLLOWING PRINCIPLES AND CRITERIA OF THE CITY OF PLYMOUTH AND THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH:
I . THE PROJECT IS CONSISTENT WITH THE CITY'S COMPREHENSIVE PLAN,
THE HRA' S STRATEGIC PLAN AND THE CITY'S DEVELOPMENT PLANS
AND OBJECTIVES.
2. THE USE OF THE LOAN OR SUBSIDY IS NECESSARY FOR THE PROJECT
AND WILL RESULT IN ENHANCEMENT OF IMPROVEMENT TO THE
PROPOSED PROJECT.
3. THE PROJECT WILL CREATE NEW JOBS THAT CREATE PAY WAGES AT A
LEVEL BENEFICIAL TO THE COMM[_]NITY.
4. THE PROJECT WILL PROTECT AND/ORENHANCE PROPERTY VALUES AND
THE TAX BASE OF THE CITY.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF PLYMOUTH, MINNESOTA THAT IT HEREBY APPROVES THE LOAN FROM THE CITY OF
PLYMOUTH USING THE PLYMOUTH ECONOMIC DEVELOPMENT FUND IN THE AMOUNT OF $178,000,
WHICH LOAN SHALL HAVE AN INITIAL ADJUSTABLE INTEREST RATE OF 3.00% THAT IS 200
BASIS POINTS BELOW THE PRIMARY FINANCING AND WILL ADR JST IN COMILINCTION WITH THE
PRIMARY FINANCING WELLS FARGO MORTGAGE FOR A TERM OF 20 YEARS.
BE IT FURTHER RESOLVED THAT THE MAYOR AND THE CITY MANAGER MAY EXECUTE ANY
AND ALL DOCUMENTS NECESSARY IN THE OPINION OF THE STAFF OF THE CITY OF PLYMOUTH AND
THE CITY ATTORNEY TO CLOSE THE LOAN.
APPROVED THIS 24TH DAY OF FEBRUARY 2009.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth,
Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the
Plymouth City Council on February 24, 2009, with the original thereof on file in my office, and
the same is a correct transcription thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this
day of
City Clerk