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August 15, 2017. They are proposing the construction of a new 9,100 square foot children's academy/ childcare <br />center in The COR, located on a roughly 0.85-acre city -owned property. Stone Brook is currently near the finish <br />line with the "entitlement process" (site plan and plat). The last major hurdle for Stone Brook is closing out <br />financing approval (i.e. City of Ramsey and SBA). <br />Notification: <br />NA <br />Observations/Alternatives: <br />LOAN REQUEST DETAIL (ITEM #6) <br />INTRODUCTION <br />The intent of the EDA RLF program is to provide gap financing in situations in which conventional/ normal <br />financing is not available for small/ medium sized businesses, to make good projects "GO." <br />APPLICANT/BUSINESS <br />Please see emailed credit analysis/ underwriting was completed by Mike Mulrooney of the Central Minnesota <br />Development Corporation (CMDC) for detailed information. Below is a summary. If the Council has specific <br />questions/ concerns regarding the credit analysis, please contact staff before the meeting (we would like to avoid <br />discussing personal financial information in an open meeting as much as possible). Also, if you would like to <br />personally review detailed financials, please contact staff --we will arrange for you to meet with CMDC before the <br />EDA meeting. NOTE: staff does not possess detailed financial statements in-house (intentionally). <br />EDA LOAN SUMMARY <br />(1) Amount:$100,000 <br />(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. Land/ Building need to be appraised. If enough value doesn't exist, a lien will be <br />placed on personal 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 $37K <br />per year in total annual property taxes). This project doesn't need to establish job wage goals ($150,000loan is the <br />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 />Funding Sources: <br />Items 1-3 no funding sources needed. <br />Item 4: TIF District #14 <br />Item 5: EDA Revolving Loan Fund <br />Recommendation: <br />