Billings Depot, Inc. is requesting a loan from the Downtown Revolving Loan Fund for the purpose of purchasing the lease of the Depot west parking lot from Computers Unlimited.   Mike Schaer of Computers Unlimited made improvements to the lot for approximately $91,000 and the Depot Inc. issued him a lease for the parking lot that could be cancelled by repaying him for the improvements. The Billings Depot, Inc. will pay one half of the cost with cash and wishes to borrow the other half from the Revolving Loan Fund.  That loan would be for $45,500 at 5% interest for 98 months.   The Depot Inc. borrowed from the revolving fund to finance the Depot Passenger Station restoration and the loan has a current balance of $77,883.  That loan has no collateral.  The new loan will refinance the past loan and add the new amount to equal $123,383.  Billings Depot, Inc. intends to lease 30-40 spaces to Computers Unlimited and the remaining spaces to other parties. Those leases will be assigned to the loan fund as collateral. The existing loan is current and has not been delinquent in the last 24 months. The Downtown Revolving Loan Committee met on February 4, 2011, and voted to recommend the new loan to Billings Depot, Inc.

Council can either approve the loan to Billings Depot, Inc. or not approve the loan to Billings Depot, Inc.

Subsequent to approval of this loan, the loan fund will have an available balance of approximately $2,184,000. ($3,200,000 fund total and $1,016,000 outstanding)

The Downtown Revolving Loan Committee recommends that the City Council approve the loan to Billings Depot, Inc. for no more than $45,500 and have the Mayor sign the lease agreement.