The Billings Depot, Inc. has had 2 previous loans from the Downtown Revolving Loan Fund. The first loan was for the financing of the Depot Passenger Station and the second loan in April 2011 was to add $45,500 for the lease and improvement of the Depot west parking to make the total loan for $123,383. The Billings Depot, Inc has been making monthly payments on this loan and is current. The balloon payment is due May 20 for $78,686.98. The Billings Depot, Inc. would like to refinance this balloon for an additional 5 years with a balloon payment due at that time. The Downtown Revolving Loan Committee met on March 27, 2019 and recommended this loan be approved by City Council. Currently there is a security agreement for the parking lot that is in place for collateral.

City Council may:

• approve the loan to Billing Depot, Inc. or
• not approve the loan to Billings Depot, Inc. If the loan modification is not approved, then the Billings Depot may default on their balloon payment.

The financial impact of this loan modification would mean the repayment of the balloon payment, $78,686.98, would not occur this year, but monthly payments would occur for an additional 5 years, at which point the remaining balance would be due. No new monies will be issued with the modification of this loan. The balance of the Downtown Revolving Loan fund is currently $508,000.  The City will be continuing to collect interest on this loan for the next 5 years. Currently the loan rate is 4.25%.

The Downtown Revolving Loan Committee recommends that the City Council approve the loan modification to the Billings Depot, Inc. for no more than $78.686.98.