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CASE #7: <br />REQUEST FOR FUNDS FROM REVOLVING LOAN FUND; <br />CASE OF RAMSEY ECONOMIC DEVELOPMENT COMPANY <br />By: Bill Goodrich, City Attorney <br />Anne Norris, Community Development Director <br />Background: <br />As you recall, the Ramsey Economic Development Company is using Community <br />Development Block Grant (CDBG) funds to establish a revolving loan fund for <br />economic development activities. The Company has received one application for <br />these funds, has reviewed all the necessary documentation, and has recommended <br />approval of the loan. The specifics of this loan are as follows: <br />Applicant: Gordon Oftedahl, GO Racing <br />Amount: $22,500 <br />Term: Seven (7) years <br />Interest Rate: One (1) point below First St. Paul's prime rate at time of <br />closing <br />Uses: Renovation of building and clean up of site at 14050 <br />Basalt Street NW <br />Security: Subordinated mortgage on the property, assignment of rents <br />and leases, and personal guarantee by Mr. Oftedahl <br />Observations: <br />All applications for the revolving loan fund approved by the City Council are <br />also subject to review and final approval by Anoka County. <br />All approved loans are required to enter into a loan agreement prior to release G: <br />of any funds. <br />Recommendation: <br />Council Action: <br />Motion to: <br />Approve/deny the request for funds. <br />Review Checklist: <br />Administrator x Chief of Police <br />Attorney g Finance Officer <br />Engineer Public Works Superintendent <br />Community Development Director X Economic Development Company x <br />