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CITY OF RAMSEY <br />REVOLVING LOAN FUND <br /> <br />P! <br /> <br />The Commm <br />determine the <br />is financially <br /> <br />tOGRAM OBJECTIVES AND UNDERWRITING CRITERIA <br />tity Development and Finance Departments analyze a development proposal to <br />exte~nt to which the proposal meets the program objectives and whether the proposal <br />mSible. As to program objectives, there is an emphasis on the creation and retention <br /> <br />of jobs, tax ba.~e arid economic development throughout the City. <br /> .i <br />As to considemtiohs of what will make a project economically feasible, the initial review of the <br />items in the lo~m g~ckage will include: <br /> [ <br /> <br />1. Marke~ Feasibility Study (Business Plan) <br />2. Financial Analysis and Breakdown of Project Economics (5 year) <br />3, Apprai~;al~:, <br />4 Plans, ~p ~eq, ifications and Cost Estimates of Proposed Project <br />5 PurchaSe Agreement <br />6 Soil: T~sts~ ~sbestos Tests, Environmental Assessment <br />7 Title <br />8 Survey~ <br />9 Insurance O~ Project <br /> <br />1. Narrati.~e o,n Company, Owners <br />2. Past th ,~ee (3) year financial statements (Signed and dated, tax returns) <br />3. Person/~l F.i/Sancials (Signed and dated, tax returns) <br />4. Tenant!hnd Lease Data (Tenant financial statements and copies of leases) <br /> <br />The elements lof the loan package become the initial materials we review. This review can <br />generally elimigate iany projects which the EDA would not want to undertake based on economic or <br />other consido~fion~. However, there are often projects which may appear marginal based on this <br />~mnal remew, ~Ut ~hmh may be workable ~f the financing can be structured in other ways. <br /> <br />In reviewing a~ pr6ject, the EDA looks at three general categories in any proposed financing, <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 peop!e, .~,e look for owners/managers who are experienced in their field or industry. A <br />detailed result, ~edit history and personal business contacts can help establish a good track <br />record. <br /> <br />As to the natur~ andquality of the real estate, some of the items to examine are: <br /> <br />B. <br />C. <br />D. <br />E. <br />F. <br />G. <br /> <br />Location <br />Buii~ng size <br />Land to building ratio <br />ua~ty of Construction <br />u!g-purpose character of the project <br />Build/ng quality <br />.$uPPorting leases, if any <br /> <br /> RLF <br />Page 3 of 7 <br /> <br /> <br />