09. Resoluton 5158 - Community Development Revolving Loan AgreementCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax (406)758-7758
REPORT TO:
The Honorable Mayer Pamela B. Kennedy and City Council
FROM:
i
Sandra K. wheeler, Community Redevelopment Manager
James H. Patrick, City Manager
SUBJECT:
Rural Development Lean
MEETING- DATE:
November 6, 2006
BACKGROUND:
City Council passed Resolution 4758, May 5th of 2003 which
established an Economic Development Revolving Loan
Program for small business retention and expansion assistance M
the City of Kalispell and a surrounding service area. This
program is a tool to stimulate economic development activity by
assisting the private sector where a funding gap exists and
alternative sources of public and private funding are not adequate.
RECOMMENDATION: Council to authorize the City Manager to enter into a loan
Agreement with the United States Department of Agriculture,
Rural Development Agency in the amount of $750,000.
FISCAL IMPACT: Five loans of $150,000 each could be leveraged with the private
sector and approximately $686,000 in revenue could be
generated from fees paid thru application submittal, loan closing
and interest generated over a ten year period.
ALTERNATIVES: As suggested by Council.
Respectfully submitted,
Sandra K. reeler es H. Pa 'c
Community Redevelopment Manager City Manager
Date Memo Prepared: October 31, 2006
RESOLUTION NO, 5155
A RESOLUTION AUTHORIZING THE CITY MANAGER To ENTER INTO A LOAN
AGREEMENT WITH RURAL DEVELOPMENT IN ORDER To PARTIALLY FUND
THE ECONOMIC DEVELOPMENT REVOLVING LOAN FUND FOR SMALL
BUSINESS RETENTION AND EXPANSION.
WHEREAS, the City Council passed Resolution 4780 on May 5, 2003, which established an
Economic Development Revolving Loan Fund for small business retention and
expansion in the City of Kalispell and created an Economic Development Loan
Review Committee; and
WHEREAS, Rural Development and CDBG Economic Development Block Grant sources
have funding available for the creation of revolving loan funds for small business
retention and expansion which may stimulate economic development activity by
assisting the private sector where a funding gap exists and alternative sources of
public and private financing are not adequate; and
WHEREAS, the USDA Rural Development Agency's Intermediary R.elending Program is
loaning the City of Kalispell the amount of $750,000 in order for the City to assist
at least five small business projects, as determined by the Economic Development
Loan Review Committee, with their financing needs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City Manager is hereby authorized and directed to enter into a
loan agreement With the United States Department of Agriculture, Rural
Development office, in the amount of $750,000 and comply with the
conditions as set forth in the attached Letter of Conditions.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 6TH DAY OF NOVEMBER, 2006.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk