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PROGRAM <br /> <br />CITY OF RAMSEY <br />REVOLVING LOAN FUND <br /> <br />OBJECTIVES AND UNDERWRITING <br /> <br />CRITERIA <br /> <br />The CommU~nity Development and Finance Departments analyze a development proposal to <br />determine the extent to which the proposal meets the program objectives and whether the proposal <br />is fmanc~!!y[feasible. As to program objectives, there is an emphasis on the creation and retention <br />of jobs, tax b./cse axtd economic development throughout the City. <br /> <br />As to considerations of what will make a project economically feasible, the initial review of the <br />items in the loan package will include: <br /> <br />1. Market Feasibility Study (Business Plan) <br />2. FinanCial Analysis and Breakdown of Project Economics (5 year) <br />3. Appraisal <br />4. Plans,; Specifications and Cost Estimates of Proposed Project <br />5. Purc~e Agreement <br />6. Soft Tests, Asbestos Tests, Environmental Assessment <br />7. Title <br />8. Survey <br />9. Insurance on Project <br /> <br />1. Narrative on Company, Owners <br />2. Past ~._ (3) year financial statements (Signed and dated, tax returns) <br />3. Perso0al Financials (Signed and dated, tax returns) <br />4. Tenant and Lease Data (Tenant financial statements and copies of leases) <br /> <br />The elements of the loan package become the initial materials we review. This review can <br />generally eliminate any projects which the EDA would not want to undertake based on economic or <br />other eonside~tions. However, there are often projects which may appear marginal based on this <br />initial review, rbutwhich rnoy be workable if the financing can be structured in other ways. <br /> <br />In reviewing ~t project, the EDA looks at three general categories in any proposed f'mancing, <br />realizing that we need to adjust our demands for information based on the type of project being <br />financed. <br /> <br />As to the people, we look for owners/managers who are experienced in their field or industry. A <br />detailed resUme, credit history and personal business contacts can help establish a good track <br />record. <br /> <br />As to the nature and qu_a_lity of thc real estate, some of thc items to examine are: <br /> <br />B. <br />C. <br />D. <br />E. <br />F. <br />G. <br /> <br />:Location <br />Building size <br />:Land to building ratio <br />! Quality of Construction <br />Multi-purpose character of the project <br />Building qu_~_lity <br />' Supporting leases, ff any <br /> <br /> RLF <br />Page 3 of 7 <br /> <br /> <br />