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Mr. Mulrooney stated the City would be in the second position because there is a first mortgage <br /> on the property now so anyone looking for additional collateral in the home would have to take a <br /> junior position to the Ramsey Revolving Loan Fund or ask for a subordination. <br /> Member Riley suggested if the EDA does approve this that it be contingent upon approval from <br /> the bank and SBA. <br /> Mr. Mulrooney agreed and stated from a funding standpoint this is going to be a little trickier also. <br /> Typically, the Revolving Loan Fund is used as a permanent or take out financing and in this <br /> particular case; it will have to go in on the front end because it is being viewed as equity in the <br /> transaction. They would not fund until they are sure the deal is going to close and all of the other <br /> funding sources are in line. He recommended that from a credit standpoint,it meets the standards <br /> set forth in their current policy and if the EDA moves forward with approval to make sure it is <br /> contingent that all the other loans are approved as well. <br /> Chairperson Steffen asked if the collateral would be on his home. <br /> Mr. Mulrooney stated he was offering that up for consideration as a way to secure the loan. <br /> Motion by Member Skaff, seconded by Member Burandt,to approve the draft loan agreement with <br /> American Print& Digital for $72,500; contingent that all the other loans are approved as well as <br /> securing a second mortgage on the house and subject to final review and amendments by the City <br /> Attorney. <br /> Further Discussion: <br /> Member Riley stated they have these funds to be used and he thought this was a good use of it to <br /> be bringing in jobs and fixing up a building. He stated this does put the City in a funny position <br /> where the City is now acting like a bank. He thought they needed to be prudent with their money <br /> because these are City funds. He sometimes questions how much sense it makes to put a lien on <br /> the home and where that puts the City between being prudent and causing issues but if the borrower <br /> does not object then he does not object. <br /> Chairperson Steffen asked who owned the building and asked if it was vacant. <br /> Mr. Mulrooney stated the real estate is listed as other real estate owned so it is owned by a bank <br /> and vacant from his understanding. <br /> Motion carried. Voting Yes: Chairperson Steffen, Members Skaff, Burandt, Brunt, Riley and <br /> Williams. Voting No: None. Absent: None. Abstain: Hardin. <br /> 4.02: Information Interview: IAG Commercial <br /> City Administrator Ulrich stated this case is a follow up to the EDA's ongoing discussion RE <br /> marketing strategies for The COR, and the sale of City-owned land. <br /> Economic Development Authority/February 9, 2017 <br /> Page 6 of 10 <br />