2009-36RESOLUTION 2009 - 36
COUNCIL MEMBER ABBOTT INTRODUCED THE FOLLOWING RESOLUTION:
WHEREAS, pursuant to the Community Development Block Grant Program as
administered by the State of Nebraska, the City of Blair adopted a Reuse Revolving Loan
Fund Program and that the Mayor and City Council of the City of Blair, Nebraska deem
it to be in the best interest of the City to amend such Loan Fund Program.
BE IT RESOLVED that attached hereto, marked Exhibit "A" and incorporated by
this reference herein, is the amended Community Development Block Grant Reuse
Revolving Loan Fund Program for the City of Blair, Nebraska.
BE IT FURTHER RESOLVED that the City Clerk is hereby authorized to
forward a copy of this Resolution and the attached Reuse Revolving Loan Fund Program
to the Department of Economic Development with the State of Nebraska.
COUNCIL MEMBER KEPHART MOVED THAT THE RESOLUTION BE ADOPTED
AS READ, WHICH SAID MOTION WAS SECONDED BY COUNCIL MEMBER
FANOELE. UPON ROLL CALL, COUNCIL MEMBERS SHEPARD, STEWART,
FANOELE, KEPHART, CHRISTIANSEN, WOLFF, ABBOTT AND JENSEN
VOTING "AYE ", AND COUNCIL MEMBERS NONE VOTING "NAY ", THE
MAYOR DECLARED THE FOREGOING RESOLUTION PASSED AND ADOPTED
THIS 24TH DAY OF NOVEMBER, 2009.
CITY OF BLAIR, NEBRASKA
B
w £'
JA . REALPH, MAYOR
ATTEST:
B'I ENDA R. WHEELER, CITY CLERK
(SEAL)
STATE OF NEBRASKA )
) :ss:
WASHINGTON COUNTY )
BRENDA R. WHEELER hereby certifies that she is the duly appointed, qualified and
acting City Clerk of the City of Blair, Nebraska, and that the above and foregoing
Resolution was passed and adopted at a regular meeting of the Mayor and City Council
of said city held on the 24th day of November, 2009.
BRENDA R. WHEELER, CITY CLERK
CITY OF BLAIR
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
REUSE REVOLVING LOAN /GRANT PROGRAM
(Revised 4/23/03 Approved by State DED 4/28/03)
(Revised 11/24/2009)
The City of Blair is committed to the enhancement of economic development and job creation in the
City's zoning jurisdiction and to the elimination of slum and blighted conditions in the City's
redevelopment area. The City actively supports efforts to assist businesses in reaching their maximum
potential. Funds available shall come from the repayment of principal and interest on CDBG loan
funds and loans from the fund.
I. TYPE OF PLAN
A. Blair's plan is a local plan. Projects must be located within city limits or the city's two -mile
zoning jurisdiction.
II. GOALS AND OBJECTIVES
A. Applications for loans and /or grants from the fund shall meet one of the following National
Objectives to be eligible:
1. 51% of jobs created or retained must be held by or available to low to moderate income
persons; or
2. Projects must help eliminate slum and blighted conditions in the City's designated
redevelopment area.
B. Local Objectives
1. To provide financing for start-up and existing businesses that cannot obtain
conventional financing or to attract new businesses to the community.
2. To create and retain jobs principally for low to moderate income persons.
3. To encourage the redevelopment of vacant or blighted buildings and land.
4. To promote entrepreneurship and new business development.
5. To provide necessary public infrastructure to businesses.
6. To improve substandard public infrastructure in the redevelopment area to help
eliminate slum and blighted conditions.
7. To assist businesses with job training costs for new employees or to upgrade skills of
existing employees.
III ELEMENTS OF THE PLAN
A. Eligible Business /Applicants
1. Industrial, manufacturing, food processing, agricultural processing, commercial,
service, telecommunications, transportation, retail businesses, restaurants.
2. Public infrastructure projects in designated redevelopment area for elimination of slum
and blighted conditions.
B. Eligible Activities
Acquisition of real estate, land and buildings, fixed assets, machinery and equipment,
renovations, remodeling, site preparation, working capital, public infrastructure, public parking,
street, roads, storage and distribution systems, water pumping stations, storm sewer, sanitary
sewer, sanitary treatment systems, sanitary pre- treatment systems, sidewalks, elimination of
accessibility barriers to public and private buildings, and job training costs.
C. Types of Assistance Available
Direct loans, deferred loans, performance based loans, loan guarantees, grants for public
infrastructure, and grants for job training. City may assume a second position to the primary
lender.
D. Minimum Assistance
$25,000
No minimum — City Infrastructure Projects
Maximum Assistance
$100,000 / Private
Unlimited / City Infrastructure Project
E. Percentage of Eligible Cost
20% / Private
100% / City Infrastructure Project
F. Required Equity Injection
20% / Private
Not Applicable / City Infrastructure Project
G. Interest Rate
0% up to 1 /2 of Bank/Lending Institution Rate
H. Loan Terms - Shall be same as Primary Lender
Sidewalk Improvement Projects
Working Capital
Machinery and Equipment
Land and Buildings
Up to 1 Year
Up to 3 Years
Up to 7 Years or useful life, whichever is less
Up to 15 Years
IV. PLAN ADMINISTRATION
A. Application Process
1. Applications available at City Clerk's Office.
2. Application Review: All applications shall be reviewed by the LB840 Review
Committee. The applicant may be asked to be present at the meeting to answer
questions.
3. Applications for the program will be accepted and reviewed on a continual basis.
Applications will be reviewed on a first come /first serve basis. When all funds are
committed, the application process will cease until additional funds become available.
4. Applications must be filed with the City Clerk at 218 South 16 Street, Blair, NE
68008.
5. City staff, including the City Attorney's office and Executive Director of Gateway
Development Corporation, will conduct an initial review of an application to make sure
it is complete and that the project is eligible for consideration.
6. Applications will then be forwarded to the LB840 Review Committee, who will make a
recommendation to the City Council to approve or deny the application. A vote of 3 /4
majority of the City Council (6) will be required to reject a recommendation for
approval by the LB 840 Review Committee.
7. The application process is expected to take between 45 -90 days from date of application
delivery to loan closing.
8. The LB 840 Review Committee reserves the right to make its recommendation based on
the credit worthiness of the applicant or rely on information provided by the primary
lender.
B. Loan Closing
1. Loan closing will be completed by City staff under the direction of the City Attorney.
The City Attorney will prepare all legal documents and security instruments (loan
agreements, promissory notes, guarantees, contracts, mortgages, financing statements,
UCC forms, etc.)
2. City Treasurer YY closing Cit Treasurer will disburse funds t applicant upon completion of loan closin as
[. v
directed by City Administrator and City Attorney.
C. Grants
1. Grants for public infrastructure improvements shall be reviewed utilizing the same
procedures as for loans.
2. Grants shall be disbursed from the funds monthly as needed, reimbursing the applicant
for expenditures.
D. Project Monitoring
1. City staff shall be responsible for loan servicing and monitoring job creation/retention
requirements
2. City staff shall be responsible for compliance on such issues as environmental review
and Davis Bacon compliance, if applicable.
3. City shall utilize a CDBG certified program administrator to monitor all loans and
grants.
E. Program Amendment
This CDBG Reuse Revolving Fund Program may be amended from time to time upon the
affirmative vote of the City Council following a public hearing.
V. REPORTING TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT
1. Reuse Program shall be submitted to DED for approval.
2. City staff, utilizing certified CDBG program administrator, shall be responsible for
filing all Semi - Annual Program Income Reports to DED by July 15 and January 15.
CITY OF BLAIR LOAN APPLICATION
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
REUSE REVOLVING LOAN FUND
(revised 4/7/03)
I. PROJECT INFORMATION
Name
Address
Telephone #:
Start Up
Existing
Number of Years in Business
Number of Existing Employees
Number of Jobs to be Created /Retained
Number of Jobs to Meet LMI
Type of Business
Fax #:
❑ Objective: Job Creation/Retention ❑
❑ Elimination of Slum/Blighted ❑
Conditions
Total Project Cost
Bank/Conventional Financing
Primary Lender Address
Proprietorship
Partnership
Corporation
O wner Equity
Amount of Reuse Loan Requested
Brief description of the location where the project will take place:
Street
City
II. ALLOCATION/USE OF FUNDS
Land Acquisition $
Building Acquisition $
Remodeling /Renovation $
New Construction $
Working Capital $
Other $
Brief Summary of Project:
III. REQUIRED INFORMATION
Borrower shall provide the following attachments:
Personal Financial Statement
Balance Sheet and Profit and Loss Statement for previous three years (existing business
only)
A current balance sheet and current operating statement no older than 90 days (existing
business only)
Accounts payable /accounts receivable
A monthly cash flow analysis for the first year or three months past the break even point
The last two fiscal year financial statements or two years tax returns
Ratio summary — quick ratios, current ratios, debt to worth, debt to assets requested
NOTE: Additional information will be requested if necessary