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-332- <br /> <br />3. Personal Guarantees of the Principles. The principles involved in the project have a~eed to <br /> provide personal guarantees on the loan received from the City. Legal Counsel for the City, is <br /> in the process of draking guarantees that will be meaningful to the City as a lender on 'the <br /> project. <br />4. Receipt and Acceptance of the Appraisal for the Project. The borrower has provided the City <br /> with a summary, of the sources and uses of funds for the project. The appraisal will provide <br /> the City with information to evaluate the leverage associated with the project. This leverage <br /> must be within acceptable limits before the loan is approved. <br /> <br />Robert Foster, Principal and Attorney for Sunfish Commons, stated that their building is located <br />on a corner in the City that was considered less than appropriate and they made an attempt to <br />purchase the property, and move forward with the project. They asked for the assistance from the <br />City with the ki~ cost of demolition of the land and some environmental issues that had to be <br />addressed. With a change in TIF laws, TIF was not available for this project, which is why the <br />issue of the revolving loan fund was brought up. They will pay the loan back from the generated <br />cash flow as well as the ownership ~ving personal guarantees. They are asking for assistance to <br />make it a slightly getter project by decreasing the amount of equity they have to put into it. <br /> <br />Councilmember Hendriksen inquired as to what level of commitment occurred prior to the <br />demolition of the new facility. <br /> <br />Mr. Foster replied that the level of commitment was that there was a possibility of the loan and <br />that staff would bring the issue to a Council meeting. Staff never made a firm commitment. <br /> <br />Councilmember Hendriksen welcomed them to the City and noted that the building was a benefit <br />to the area. He stated that the only part that concerns him is the sequence of events because it <br />appears that the owners of Sunfish Commons have already made the commimaents, and typically <br />the City makes the loans before the project proceeds. <br /> <br />Mr. Foster replied that they would have liked to have been in before the Council sooner, but they <br />did develop the project with the expectation that staff would come forward and recommend the <br />loan. <br /> <br />Councilmember Zimmerman inquired as to why TIF was not used for the project. <br /> <br />Mr. Foster replied that the laws pertaining to TIF have changed recently, which made it <br />unavailable for their project. <br /> <br />Motion by <br />Revolving <br />Mulrooney <br />by the City <br /> <br />Mayor Gamec, seconded by Councilmember Anderson, to authorize a $150,000 <br />Loan to Sunfish Commons Partnership, subject to the recommendations of Mr. <br />dated November 19, 2001, being met as well as all loan documents being approved <br />Attorney and Economic Development Consultant Mr. Mulrooney. <br /> <br />Ci~ Council/November 27, 2001 <br /> Page 8 of 22 <br /> <br /> <br />