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PROGRAM <br /> <br />CITY OF RAMSEY <br />REVOLVING LOAN FUND <br /> <br />OB.IECTIVES AND UNDERWRITING CRITERIA <br /> <br /> The Commumy.y Development and Finance Departments analyze a development proposal to <br /> determined e e~ent to which the proposal meets the program objectives and whether the proposal <br /> is financiall', fe~ible. As to program objectives, there is an emphasis on the creation and retention <br /> of jobs, tax las~ '~and economic development throughout the City. <br /> As to consi~Ler'a.t~ons of what will make a project economically feasible, the initial review of the <br /> items in the loan Package will include: <br /> <br /> 1 Marl~et Feasibility Study (Business Plan) <br />2 Fina~icialIAnalysis and Breakdown of Project Economics (5 year) <br />3 App~isal; <br />4 PlanS, Specifications and Cost Estimates of Proposed Project <br />5 Purchase .~greement <br />6 Soil ~¢stS, Asbestos Tests, Environmental Assessment <br />7 Title ~r . <br />8 Surv,~y ; <br />9 Insu~nee~on Project <br /> ORnOWZR <br /> <br />1. Narrative ion Company, Owners <br />2. Past ~rce!(3) year financiM statements (Signed and dated, tax returns) <br />3. P~$c~nal!~inancials (Signed and dated, tax returns) <br />4. Tenant roll Lease Data (Tenant financial statements and copies of leases) <br /> <br />The elemen~ ofithe loan package become the initial materials we review. This review can <br />eenerally eliI~ainate any projects which the EDA would not want to undertake based on economic or <br />~)ther consid~atic~ns. ~owever, there are often projects which may appear mareinal based on this <br />initial revieV,,~ bfft[which ma), be workable if the financing can be structured in or'her ways. <br />In reviewingi, a Pioject, the EDA looks at three general categories in any proposed financing, <br />realizing tha¢ we i~eed to adjust our demands for information based on the type of project being <br />financed. <br /> L <br />As to the peOpled we look for owners/managers who are experienced in their field or indusu3'. A <br />detailed resu~me, C'edit history and personal business contacts can help establish a good track <br />record. <br /> <br />As to the nature and quality of the real estate, some of the items to examine are: <br /> <br /> A. Loe, ation <br /> B. Building size <br /> C. Land to building ratio <br /> D. Qu.~Iity of Consm.~crion <br /> E. MUlti-purpose character of the project <br /> F. BUilding quality <br /> G. SUpporting leases, if any <br /> <br /> RLF <br />Page 3 of 7 <br /> <br /> <br />