Consent 1.K.
Regular City Council Meeting
- Meeting Date:
- 01/13/2020
- TITLE
- Downtown Revolving Loan Wise Wonders/704 Properties LLC for $200,000
- PRESENTED BY:
- Andy Zoeller
- Department:
- Finance
Presentation:
No
PROBLEM/ISSUE STATEMENT
Shawna Bonini of Wise Wonders/704 Properties LLC has requested a loan from the Downtown Revolving Loan fund for the amount of $200,000. She will be providing a letter of personal guarantee and the City will file a lien on the building. Based upon a title search, the City will be a second position lien holder behind a local lender. The Downtown Revolving loan committee met on December 5 and has recommended this loan be approved by City Council.
ALTERNATIVES ANALYZED
City Council may:
- Approve the loan to Shawna Bonini of Wise Wonders
- Disapprove the loan to Shawna Bonini and she will have to secure additional financing elsewhere.
FINANCIAL IMPACT
Approval of this loan will decrease the balance of the cash in the Downtown Revolving loan fund by $200,000 leaving the balance of this fund at approximately $440,000. Current interest rate for loans out of this fund are at 4.25%
RECOMMENDATION
The Downtown Revolving loan committee recommends the City Council approve the loan to Shawna Bonini of Wise Wonders for no more than $200,000.