Minutes - Council - 12/12/2023 - Laserfiche WebLink

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7. COUNCIL BUSINESS 7.0(A): Adopt Resolution #23-301 Approving Loan to SA Group, Inc. from City RLF - Please Note: this case was moved from the Consent Agenda - 5.15 to the Regular Agenda - 7.0(A) Councilmember Musgrove shared she requested this item be pulled from the Consent Agenda because she had reached out to Economic Development Manager Sullivan with a question on the interest and how this was determined for this loan. She noted that according to the City RLF policy, the amount does not match. She said the policy states that the interest rate should be a fixed rate and equal to the 10-year treasury bond rate at the date of funding but shall not be less than 3%. She noted that Economic Development Manager Sullivan shared that today the treasury bond rate is 4.2%. She added that having a rate in here already is premature based on what the policy states. Economic Development Manager Sullivan stated Councilmember Musgrove is correct. He shared he has not done many RLFs in the City; however, every one that they have done, the rate has been below the 3% threshold so they locked in the 3%. He stated when they started looking at this in July the rate was 3.49%. He noted that in the event that the rate does go up, this would be the rate they should use for the policy. He shared that he supports the action of having this item pulled. Motion by Councilmember Musgrove, seconded by Councilmember Riley, to Adopt Resolution #23-301 Approving a $149,999 loan from RLF (6 years) to SA Group Inc. from City RLF, with the interest rate to be determined based on the 10-year treasury note rate at the time of the loan closing, not to be less than 3%; subject to City Attorney Review. Further discussion: Councilmember Musgrove shared that she is glad that they are able to help out this business in this way. Motion carried. Voting Yes: Mayor Kuzma, Councilmembers Musgrove, Riley, Howell, Olson, Specht, and Woestehoff. Voting No: None. 7.01: Introduce Ordinance #23-19 Amending Temporary Sign Regulations Planning Manager Larson reviewed the Staff report concerning the proposed amendment to temporary sign regulations. Councilmember Musgrove asked about the EDA’s recommendation to double the existing timeframe. Planning Manager Larson explained that the EDA’s recommendation was to take the existing six week timeframe with a four week extension and doubling that to a 12 week timeframe with an eight week extension. He shared that the Planning Commission’s recommendation was the same; however, the eight week extension could be extended further. City Council / December 12, 2023 Page 9 of 12