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HomeMy WebLinkAboutCity Council Resolution 2018-230 C ITY OF P LYMOUTH R ESOLUTION N O. 2018-230 R ESOLUTION A PPROVING THE I SSUANCE OF A L OAN TO CEL P UBLIC R ELATIONS, I NC. THROUGH THE P LYMOUTH E CONOMIC D EVELOPMENT R EVOLVING L OAN F UND 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 loan fund has a current balance of $109,104.08 to be used toward new loans; and WHEREAS, the City has received an application from CEL Public Relations, Inc. for a loan from the City under the Economic Development Revolving Loan Fund to provide working capital related to the hiring of five (5) to ten (10) additional employees over the next twenty-four (24) months; and WHEREAS, the amount of loan requested by CEL Public Relations, Inc., which will be personally guaranteed by Cynthia S. Leines, in the amount of up to $100,000.00 and equal to $10,000.00 per additional full time position created with an anticipated interest rate of 5.0% for a term of five (5) years; and WHEREAS, the loan to CEL Public Relations, Inc. will meet the following objectives of the Plymouth Economic Development Revolving Loan Fund Guidelines: A. Creation or retention of permanent private-sector jobs B. Stimulation or leverage of private investment ; and WHEREAS, the loan to CEL Public Relations, Inc. will meet the following criteria of the Plymouth Economic Development Revolving Loan Fund Program: A. To provide loans for credit worthy businesses that create new jobs B. To assist new or existing industrial and commercial businesses to improve or expand their operations C. To provide loans in situations in which a funding gap exists ; and WHEREAS, the loan by the City of Plymouth to CEL Public Relations, Inc. will comply with the Plymouth Economic Development Fund Guidelines. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA that the loan from the City of Plymouth using the Plymouth Economic Development Fund in an amount up to and including $100,000.00, which loan shall have an anticipated interest rate of 5.0% and a term of five (5) years, with repayment beginning after the initial twenty-four (24) month hiring period is approved. B E IT FUTHER RESOLVED that the Mayor and 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 by the City Council on this 26th day of June, 2018. 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 June 26, 2018 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