Urban Frontier Development Venture, L.P is requesting a payoff extension from the Downtown Revolving Loan Fund.  The loan was originally to be amortized over 20 years with a balloon payment at ten years, due on March 1, 2012.  The loan was for property improvements at 2723 Minnesota Avenue.  A personal guarantee will be provided by W. Randall Hafer, General Partner. The extended loan terms will be for monthly payments of $1,386.75 per month for 60 months with a balloon payment and 5% interest, adjusted annually.  The current loan balance is $130,744.78.  The existing loan is current and has not been delinquent in the last 24 months.  The property is for sale and the loan would be paid in full in the event of the sale.  The Downtown Revolving Loan Committee met on March 1, 2012, and recommends an extension of loan terms for the loan to Urban Frontier Development Venture, L.P. 

Council may:

•Approve the loan extension terms; or
•Not approve loan extension terms. If Council does not approve the loan, the applicant will have to find financing at a bank which could delay principle payment.

Subsequent to approval of this loan extension, the loan fund will have an available balance of approximately $3,200,000.  This amount does not include loans of $600,000 that are approved but not issued.
 
The interest rate will be adjusted annually to the Prime Rate plus 1%.

The Downtown Revolving Loan Committee recommends that the City Ccouncil approve the loan extension terms for Urban Frontier Development Venture, L.P.