Agenda - Council - 02/28/2017 - Laserfiche WebLink

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Councilmember Kuzma stated that five percent equity is pretty low for the owner. Mr. Mulrooney provided additional input on the funding process. He stated that the company has a fairly good growth history but there is a funding gap. He stated that this expansion will allow the business to be more competitive and gain the equipment necessary to stay competitive. He stated that the borrower lacks liquidity and the RLF can fulfil its mission of filling the gap in funding. Councilmember LeTourneau appreciated the questions asked tonight and the input of the EDA. He noted that there is a substantial vetting process to line an applicant up with this funding that is a great tool to allow small businesses to grow in the community, create more jobs and become more successful. Motion by Councilmember LeTourneau, seconded by Councilmember Riley, to approve the draft loan agreement with American Print & Digital and approve an EDA RLF loan in an amount up to $72,500 (not to exceed 5% of the project cost), subject to the following: the borrower providing a second mortgage on his residence to secure the loan, the borrower receiving approval of the project loan by the bank and the SBA, and review and approval of the loan agreement by the City Attorney and the CMDC. Further discussion: Councilmember Kuzma stated that he has concerns that the applicant would be taking on a tremendous amount of debt with the building and machines. He stated that the profit margins would typically be smaller because they work with print brokers and therefore would not support this. Councilmember LeTourneau stated that he is comforted by the commitment for the business owner to place his residence as collateral to help mitigate the risk and therefore believes this is worthwhile. Motion carried. Voting Yes: Mayor Strommen, Councilmembers LeTourneau, Riley, Johns, Shryock, and Williams. Voting No: Councilmember Kuzma. 7.08: Consider Adopting Resolution #17-02-045 to Hire Two Patrol Officers Police Chief Katers reviewed the staff report and recommendation to hire Mr. Robert Pullar and Ms. Melissa Stephens as City of Ramsey Police Officers, on or near March 1, 2017 at $25.06 per hour, which is step one of the wage scale. Councilmember Kuzma stated that he is excited that they are able to bring two new members to the department to strengthen the office. Motion by Councilmember Kuzma, seconded by Councilmember Shryock, to adopt Resolution #17-02-045 to Hire Two Police Officers. City Council / February 14, 2017 Page 10 of 13