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TO: Mayor Richard C. Irvin
FROM: David Dibo, Economic Development Director
DATE: March 9, 2020
SUBJECT:
A Resolution Authorizing the Specific Implementation as Outlined in the Attached Redevelopment Agreement (RDA) as to How Disbursements Will Be Made for the Previously Approved $600,000 Loan (Resolution #19-421) And Other Details Regarding the Payback and Loan Mechanics. (Craft Urban / Bernie Laskowski - 20-0193 / AU22/3-20.052-AG/I - AM - WARD 6)
PURPOSE:
The purpose is to memorialize a document that details how the aforementioned City Council approval is to administered and implemented.
BACKGROUND:
Since resolution R19-421 was approved last December 17, 2019 Bernie Laskowski has completed his purchase of 41 South Stolp and COA completed its purchase of its adjacent lot. With a number of moving parts and the year-end approaching Council approved the loan that gave Mr. Laskowski the comfort to close on his transaction and enabled COA to come to terms with the adjacent lot owner assuring that a combined project could move ahead. Staff indicated that it would bring forth an RDA after it had been vetted between COA and Mr. Laskowski; funds have not yet been dispersed on the loan. Aside from purchasing 41 S. Stolp, Bernie and his investors are responsible for funding tenant improvements estimated at an additional $300,000.
DISCUSSION:
The highlights of the RDA are:
Aside from provisions that would be expected in a loan agreement (boilerplate plus affirming obligations such as the guarantee, loan terms, insurance, etc.,) here are some provisions worth noting:
1. The inclusion of a specific timeline highlighting key dates for completion
2. The inclusion of a budget (that will be refined once final plans are completed)
3. The allowance of the release of $50,000 "upfront" to complete drawings and apply for permits
4. Subsequent payments will be made on a "draw" basis, upon receipt of invoices/waivers of lien for work performed on the project ...
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