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(2) Total Project Costs: $2.36M <br />(3) Loan toTotal Costs: 4.24% <br />(4) Term: 15 years <br />(5) Interest Rate: 3% <br />(6) Payments: $690.58 per month <br />(7) Total Interest to be Paid: $24,304 <br />(8) Collateral: land/ building <br />Land/ Building need to be appraised. If enough value doesn't exist, a lien will be placed on personal <br />property. Additionally, like all EDA loans, a personal guarantee will be required. <br />(9) Policy Goals: job creation occurring at 15-20 jobs, and tax base creation at estimated $1.75M (estimated <br />$37K per year in total annual property taxes). This project doesn't need to establish job wage goals ($150,000 <br />loan is the threshold). <br />(10) Personal Credit History: appears to be good <br />(11) Personal Assets: appear to be good <br />(12) Debt Coverage: appears to be good (1.9 yr 1, and 2.2 yr 2), plus owners will retain full time jobs to begin. <br />(13) Owner Equity: sufficient (greater than 10%) <br />Funding Source: <br />EDA RLF: about $300,000 balance. <br />Recommendation: <br />In summary, Mr. Mulrooney was satisfied with the credit -worthiness of Stone Brook Children's Academy and <br />Childcare Center (MK Johnson Properties LLC). Please see emailed CMDC MEMO. <br />Action: <br />Motion to recommend the City Council: <br />Approve a Ramsey EDA Loan to MK Johnson LLC consistent with the terms and conditions outlined in this case. <br />-and- <br />To direct staff to draft proper loan agreements and loan documents for approval by the City Council. <br />Attachments <br />Amortization <br />Stone Brook Project <br />EDA RLF Guidlines <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Jo Thieling 07/07/2017 11:29 AM <br />Patrick Brama (Originator) Patrick Brama 07/07/2017 11:32 AM <br />Kurt Ulrich Kurt Ulrich 07/07/2017 11:59 AM <br />Form Started By: Patrick Brama Started On: 07/06/2017 04:13 PM <br />Final Approval Date: 07/07/2017 <br />