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HomeMy WebLinkAboutRe-appointments to the Revolving Loan Fund Committee.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Aimee Kissel, Deputy Clerk / Citizen Advisory Board Coordinator Stacy Ulmen CMC, City Clerk SUBJECT: Reappointment of two members to the Revolving Loan Fund Committee managed by the Prospera Business Network. MEETING DATE: August 1, 2011 (moved from July 25, 2011) AGENDA ITEM TYPE: Action RECOMMENDATION: Reappoint Brian LaMeres and Brit Fontenot to the Revolving Loan Fund Committee. BACKGROUND: The Bozeman Revolving Loan Fund is an economic development program of the City of Bozeman. The fund began from loan payments made by recipients of Economic Development Block Grants received from the City through the State of Montana Department of Commerce. The fund provides financing to eligible businesses located within the Bozeman city limits, with priority given to businesses engaged in activities creating "quality jobs" with more than half of their gross revenues coming from outside Gallatin County. All final lending decisions for the fund are made by the independent Bozeman Revolving Loan Fund (RLF) Committee. The Gallatin Development Corporation, doing business as the Prospera Business Network administers the fund and RLF Committee through a sub-recipient agreement, most recently updated in June, 2011. Guidelines are also established pursuant to Commission Resolution No. 3488 with the 2011 agreement superseding the Resolution. The composition of the RLF Committee was changed in the 2011 Sub-Recipient Agreement with Prospera to ensure compliance with applicable federal regulations. The composition of the Committee consists of two city appointees and five Prospera appointees, all appointed to two year terms. City of Bozeman Finance Controller, Brian LaMeres and city of Bozeman Economic Development Director, Brit Fontenot have previously served on this Committee and are uniquely qualified to best represent the city on the Committee. For this reason, staff recommends the reappointment of Brian LaMeres and Brit Fontenot. 343 UNRESOLVED ISSUES: None at this time, though this is an ideal time to reappoint these members as new procedures will be discussed by the Committee in August and two new applications reviewed. ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: None with this appointment beyond the additional time and energy commitment required by city staff Brian and Brit. Attachments: · Sub-Recipient Agreement with Prospera for Community Development Block Grant Revolving Loan Fund · Resolution No. 3488. Report Compiled on: July 13, 2011 344 SUPRECIPIENT AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT REVOLVING LOAN FUND June 2011 June 2013 THIS AGREEMENT is entered into this Sk day of June 2011 by the CITY OF BOZEMAN MONTANA whose address is 121 N Rouse Bozeman MT 59715 herein referred to as the City and the GALLATIN DEVELOPMENT CORPORATION doing business as PROSPERA BUSINESS NETWORK whose address is 222 East Maim Street Suite 102 Bozeman MT 59715 a nonprofit economicdevelopmentcorporationherein referred to as the SubRecipient WITNESSETH THAT WHEREAS the City has applied to and has been approved by the Montana Department of Commerce MTDOC for the receipt of grant funds under the Montana Community Development Block Grant Economic Development CDBG Program and WHEREAS the City wishes to use present and future CDBG grants and loan fund revenue to further develop the CDBG Revolving Loan Fund RIT which is designed to leverage private investment in new business for the purpose of generating new jobs within the City of Bozeman and WHEREAS the City has previously entered into an Agreement with the Sub Recipient to subgrant the CDBG funds to the SubRecipient and engage the SubRecipient to administer the City of Bozeman WF jointly on their behalf for a period of twenty four months and WHEREAS to maintain accountability professional management and program performance it is deemed to be in the best interests of the City to extend the Agreement with the SubRecipient for two additional years as hereinafter provided and WHEREAS the City desires to continue to subgrant the CDBG funds to the Sub Recipient and engagetheSubRecipienttoadministertheRlFontheCitybehalfand WHEREAS there exists City of Bozeman Economic Development Revolving Loan Fund Guidelines established pursuant to Commission Resolution 3488 which are hereby included in this agreement and WHEREAS pursuant to Resolution 3488 there exists a City of Bozeman Revolving Loan Fund Comraittee the RIX Conunittee to evaluate the feasibility and investment potential of proposed economic development projects and WHEREAS the parties to this Agreement understand that neither of them has in any way expressly or impliedly abrogated any of its individual powers and further agree that this Agreement does not create anyneworganizationorlegalentity Page 1 of 7 345 NOW THEREFORE in consideration of the mutual covenants and conditions set out in this Agreement the parties agree that the foregoing statements of fact are true and correct and further agree as follows A SPLCIAL PROVISIONS The City agrees under the terms and conditions of this Agreement to sub grant to the Sub Recipient the CDBG loan funds as a grant for gap financing and technical assistance to eligible borrowers and does hereby transfer assign and convey to SubRecipient all of the Citys interest in and to its existing RIF loan portfolio B INDEPENDFNT CONIRACTOR It is understood by the parties hereto that the SubRecipient is an independent contractor and that neither its principals nor its employees if any are employees of the City for purposes of tax retirement system or social security FICA withholding It is further understood that pursuant to section 3971401 MCA the SubRecipient has obtained and will maintain at its expense for the duration of this Contract coverage in a workers compensation plan for its principals and employees for the services to be performed hereunder C SCOPE OF SERVICES be Sub Recipient will perform the following services The Sub Recipient will be responsible for all facets of the CDBG financing program as described in the Management Plan for the CDBG project a copy of which the City has delivered or will deliver to Sub Recipient prior to execution of this Agreement The SubRecipient will also be responsible for all aspects of the Revolving Loan fund program including the following a Develop apply and enforce written Policies and Procedures as they relate to the City of Bozeman RLF program and or administering the RLF program under the local CDBG grant program including the creation and operation of an RLF Loan Committee to review and act upon loan requests b Application process through approval a Assist prospective borrowers in completing loan application materials b Conduct 1v1CC lien searches if applicable and pertinent to the proposed loan collateral c Provide a project analyses to the RLF Loan Committee d Coordinate monthly RTY Loan Committee meetings and e resent proposed projects to RLF Ioan Committee for loan approval or denial Decisions as to loan approval or denial are the sole responsibility of the RLF Loan Committee and the City shall have no authority or ability to intervene in the loan approval or denial process c Loan Closing and Documentation a Completion of loan documentation using loan documentation software b Loan closing to be conducted by a title company or by Sub Recipient c Funds disbursement and payment processing utilizing the GMS Loan Accounting software and d Collection and retention for Sub Recipients use of loan fees and charges as provided in Sub Recipients Policies and Procedures d Loan Servicing Oversight a Gather and analyze monthly or quarterly financial reports from borrowers as required by the applicable loan agreement Page 2 of7 346 b Tracy and monitor status of borrower insurance policies c Track and monitor UCC financing statement filings and renewals and d Provide monthly loan updates to RLF Loan Corn ittee e Process monthly loan payments a Track receive process and account for all monthly loan payments b Track hate payments mailing late notices and calling delinquent borrowers as needed c Work with delinquent borrowers to cure defaults and where appropriate develop a workout plan subject to approval of the RIF Loan Committee f Monitor and process all forfeitures of loam collateral and use commercially reasonable efforts to collect delinquent and defaulted loans including the filing of creditors claims in bankruptcy where applicable subject to the approval of the RLF Loan Committee 2 The SubRecipient shall maintain eligibility as a CommunityBased Development Organization pursuant to Title 24 Part 504 CFR and shall ensure all activities conducted pursuant to this Agreement comply with all federal and state regulations regarding community development block grants During the term of this Agreement the Sub Recipient will maintain reasonable records of its performance under this agreement in a manner consistent with generally accepted accounting principles tie Sub Recipient will provide the City or its authorized representatives access to these records at any time during normal business hours Upon written request of the City the SubRecipient will submit to the City in the format prescribed by the City semi annual status reports on its performance under this agreement 4 Except as set forth in Section 4 below the SubRecipient will retain administer manage record and account to the City for all RLF loan fund revenue received subsequent to the date of this agreement including principal and interest received from borrowers Sub Recipient will use such revenue to enhance the RLF program for the benefit of all eligible borrowers located within the City of Bozeman As payment for the services rendered by Sub Recipient the SubRecipient shall retain either 3200000 or eighteen percent 18 of the total of payments on interest and principal from loan repayments and interest earned on the principal balance whichever is greater The Sub Recipient may retain and pay such compensation to itself in installments not more frequently than monthly In no case except for the SubRecipients expenses for attorney fees and attorney costs related to collection efforts as described in subsection 6 of this section shall the payment for services to the Sub Recipient result in a decrease in the base principal amount of the fund as determined on a yearly basis 6 Sub Recipient is entitled to use RLF funds for any costs incurred by SubRecipient in connection with the collection of delinquent or defaulted loans including but not limited to any filing fees or legal fees and costs It is specifically agreed and understood that any such use of RLF funds in this manner by the SubRecipient is separate and distinct from the payment Sub Recipient will be receiving for its services that is to say costs and fees incurred in connection with the collection of delinquent or defaulted loans will be paid by RLF Funds and not by the SubRecipient D EFFECTIVE DATE AND TIME OF PTRFORNLINCF This agreement supersedes all previous agreements whether written or oral between the Cit and the Sub Recipient dealing with the City of Bozeman RLF program The term of this Agreement shall be twenty four 24 months commencing on the date of execution by the parties This Agreement will terminate upon expiration of its initial term unless extended in writing by mutual agreement of the parties or if either pam fails to meet the conditions of this Page 3 of 7 347 Agreement or if an Event of Default occurs after notice and opportunity to cure as provided in Section N below E CONFLICT OF INTEREST The SubRecipient covenants that it presently has no interest and will not acquire any interest direct or indirect in the CDBG project that would conflict in any manner or degree with the performance of its services hereunder The SubRecipient further covenants that in performing this Agreement it will employ no person who has any such interest F CIVIL RIGHTS ACT OF 1964 fie SubRecipient will abide by the provisions of the Civil Rights Act of 1964 which states that under Tide VI no person may on the grounds of race color or national origin be excluded from participation in be denied the benefits of or be subjected to discrimination under any program or activity receiving federal financial assistance G SECTION 109 CAF THE HOUSING AND COMMUNITY DEVELOPMENT ACT CAF 1974 The Sub Recipient will comply with the following provision No person in the United States may on the grounds of race color national origin of sex be excluded from participation in be denied the benefits of or be subjected to discrimination under any program or activity funded in whole or in part with the funds made available under this title Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to provided in Section 504 of the Rehabilitation Act ofanotherwisequalifiedhandicappedindividualaspr 1973 will also apply to any such program or activity H NONDISCRIMINATION In addition to the requirements of subseciton G above the Sub Recipient will not discriminate against any employee or applicant for employment on the basis of race color religion creed political ideas sex age marital status or national origin or because of actual or perceived gender sexual orientation or gender identity or disability The Sub Recipient Ilentagreesthis provisio will apply to the hiring and treatment of the SubRecipients employees and shall be included in all loan agreements with borrowers and apply to the use and expenditure of RIX funds L REPORlS AND INFORMATION The SubRecipient will maintain accounts and records including personnel property and financial records adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by the City to assure proper accounting for all project funds These records will be made available for audit purposes to the Cit or it authorized representative and will be retained for three years after receipt of final payment for the services rendered under this Agreement unless permission to destroy them is granted by the City J ADMINISTRATION 1 For purposes of implementing this Agreement the City will appoint a local government project representative that will work with the SubRecipient The parties will meet as necessary to provide for the efficient and smooth implementation of this Agreement and the activities contained herein 2 The parties agree the RLF Committee shall have final decision making authority regarding the loaning of RLF funds and shall follow guidelines set forth in Commission Resolution No 3488 except that this Agreement supersedes the requirements of Commission Resolution 3488 only in SO far as it relates to any provision in Resolution 3488 in conflict with this Agreement Page 4 of 7 348 3 To ensure the composition of the RLF Committee complies with applicable federal regulations the Committee shall consist of seven members two of tivhich shall be appointed by the City Commission with the remaining fine to be appointed by the Sub Recipient 4 The Sub Recipient will comply with the Certifications for Application signed by the City and submitted with the application for economic development assistance to the Montana Department of Commerce 5 The Sub Recipient shall ensure that all borrowers to whom Sub Recipient lends RLF funds after the effective date of this Agreement comply with the State of Montana Department of Commerces Community Development Block GrantEconomic Development Program Application Guidelines pertaining to low and moderate income persons G The Sub Recipient will comply with Procurement Standards as outlined in Chapter 3 and Chapter 8 of the CDBG Administration Manual before entering into any agreements to remodel to purchase equipment or material or to retain the services of a consultant or Sub Recipient 7 The Sub Recipient will contract with an independent accounting firm to conduct an annual audit sufficient to obtain an unqualified opinion of the RLF loan fund and program as conducted by Sub Recipient under this Agreement K TERMINATION DISPOSITION OF ItEAI PROPERTY OR EQUIPMENT ACQUIRED Upon the expiration or termination of this Agreement the SubRecipient will transfer to the City the then existing RLF loan portfolio and all related loan records together with the then existing balance in the Sub Recipients RIF loan fund less any unpaid portion of Sub Recipients compensation under this Agreement to the date of expiration or termination L INDEMNIFICATION The parties agree to waive any and all claims and recourse against one another including the right of contribution of loss or damage to person or property arising from growing out of or in any way connected with or incidental to the parties performance of this Agreement Each party shall indemnify defend and hold harmless the other party including such other partys affiliates partners officers directors employees agents and representatives against any claims and or liabilities of any nature including reasonable attorneys fees arising out of the performance of this Agreement The City specifically agrees that RLF loan decisions are the prerogative of the RLF Loan Cominittee and that the SubRecipient has no liability of any kind for decisions and actions related thereto including loan decisions that were shade prior to this Agreement M TERMINATION OF AGREFMINI If any of the following events occur the City may in its sole discretion declare such event a default under this agreement Event of Default F Any representation or warranty made by the Sub Recipient in this Agreement or in any request or certificate or other information furnished to the City under this Agreement proves to have been incorrect in any material respect or 2 The SisbRecipient fails in any material respect to carry out its obligations under its proposal to the City for the assistance provided under this Agreement If the Sub Recipient fails to perform any of its duties under this Agreement or if any Event of Default occurs the Cty maT declare the Sub Recipient to be in default and thereafter give the Sub Recipient written notice setting forth the action or inaction that constitutes the default and giving the Sub Recipient 45 days in Page 5 of7 349 which to correct the default If the SubRecipient fails to correct the default within 45 days of receipt of such notice die City may terminate this Agreement Without further notice subject to the terms of Section L above The parties agree that this Agreement provides for reasonable and sufficient notice to be given to the Sub Recipient in case of the Subrecipients failure to comply with any of its covenants and that this notice is sufficient for the Sub Recipient to rectify its actions or inactions of default The waiver by the City of any default by the SubRecipient does not constitute a waiver of a continuing breach or a waiver of a subsequent breach Any agreement contrary to this Agreement is not binding upon either party unless it is in writing and signed by both parties N CONSTRUCTION AND VENUE This Agreement will be construed under and governed by the laws of the State of Montana llic City and the SubRecipient agree that performance of this Agreement is in the County of Gallatin State of Montana and that in the event of litigation concerI119 it venue is in the District Court of the Judicial District in and for the City of Bozeman Montana This Agreement has been approved by City Commission and by Subrecipients Board of Directors each of which has authorized the undersigned persons to execute this Agreement on its behalf 0 A170RNEYS FEES In the event that either party incurs legal expenses including the costs expenses salary and fees of the inhouse counsel to include City Attorney to enforce the terms and conditions of this Agreement the prevailing party is entitled to recover reasonable attorneys fees and other costs and expenses whether the same are incurred with or without suit including fees on appeal P PUBLIC MEETINGS AND ACCESS JO PUBLIC RECORDS The SubRecipients RLF Loan Committee shall comply with the open meeting requirements of Montana law including those set forth in Title 7 Chapter 1 Part 41 MCA and Title 2 Chapter 3 MCA To help ensure compliance the Sub Recipient shall provide R1F Cornnuttee meeting agendas to the City Clerks office no later than 72 working hours prior to meeting for notice on the Citys official Posting board and any other sites deemed reasonable by the Clerks office In addition meeting minutes will be kept by the SubRecipient and provided to the City Clerks office no later than 45 days after the meeting These minutes shall be posted and niade available to the public by the City Clerks office except for those minutes taken during a closed meeting in accordance with 714144 MCA Nlinutes taken during a closed meeting shall also be provided to the City Clerks office but shall be handled on accordance with the City Clerks regular executive session protocol and kept privateinasecuredcabinet In accordance with 714144 MCA and subject to any applicable legal obligation to protect and preserve individual confidential or private information upon reasonable request and at reasonable times during normal business hours SubRecipient shall make such RLF loan documents and records available for inspection and copying by members of the public SubRecipient may charge for such copying in accordance with the policies of the city which SubRecipient hereby adopts for such purposes To determine whether a meeting or part of a meeting may be closed to the public and to determine whether information contained in RLF loan documents is protected by law from disclosure the Sub Recipient mayIPI consult with and seek the advice of the City Attorney at no cost to SubRecipient The advice and consultation shall be on behalf of the RLF Committee and not Gallatin Development Corporation Page 6 of 7 350 Q i i ELIGIBILITY The SubRecipient certifies that the SubRecipient and the Sulrecipients principals are not debarred suspended voluntarily excluded or othervise ineligible for participation in federally assisted contracts under Executive Order 12549 Debarment and Suspension 24 CFR 24505 IN WITNESS W1 IEREOF the parties hereto have executed this Sub Recipient Agreement on the day ofJune 2011 SUBRECIPIWE pwcll Date reI Board of Directors Gallatin Development Corporation DBA Prospera Business Network CITY 77 Chris Kukulski Date City Manager City of Bozeman Attest Lar Mikiola Date SecretaryTreasurer Board of Directors Gallatin Development Corporation DBA Prospera Business Network I I Attest 13 0 27Cityrk City 7IN co Approved as to Form Bozeman Date CityBozmanCity Attorney Page 7 of 7 351 COMMISSION RESOLUTION NO 3488 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN MONTANA REVISING GUIDELINES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT ECONOMIC DEVELOPMENT REVOLVING LOAN FUND AND SUPERSEDING COMMISSION RESOLUTION NO 3200 WHEREAS the City of Bozeman has received six economic development grants totaling 1 098 000 from the Community Development Block Grant program administered by the State of Montana Department of Commerce to fund specific loan requests and WHEREAS the City of Bozeman is now beginning to receive payments on these loans with said payments going into the Community Development Block Grant Revolving Loan Fund and WHEREAS the City Commission did on the 9th day of December 1991 establish guidelines for the Community Development Block Grant Revolving Loan Fund by adopting Commission Resolution No 2852 and WHEREAS the City Commission did on the 15th day of September 1997 revise the guidelines by adopting Commission Resolution No 3200 and WHEREAS the City Commission has determined that additional revisions of the guidelines for the Community Development Block Grant Revolving Loan Fund are needed NOW THEREFORE BE IT RESOLVED by the City Commission of the City of Bozeman Montana that the revised guidelines for the Community Development Block Grant Revolving Loan Fund attached hereto as Exhibit A and by this reference made a part hereof are hereby adopted PASSED AND ADOPTED by the City Commission of the City of Bozeman Montana at a regular session thereof held on the 22nd day of October 2001 MA ofJJvOl ATTEST L Clerk of the Commission 352 EXHIBIT A CITY OF BOZEMAN ECONOMIC DEVELOPMENT REVOLVING LOAN FUND GUIDELINES l INTRODUCTION The City of Bozeman has received several grants from the Montana Community Development Block Grant Economic Development Program During the period from 1 987 to 99Z 11 I the City received five jx Economic Development Grants and with those funds awarded loans to Schnees Boot Works ILX Lightwave Corporation Lattice Materials Corporation two loans 3nd CVR Oak Designs qtJI@ j qt ror Q Qpt qQ fl q9 ID9 Payments from these loans have been deposited into an interest bearing Economic Development Revolving Loan Fund hereinafter referred to as Fund Interest earnings and income generated from these investments have been reinvested into the Fund and these funds are loaned to local businesses for the purpose of furthering economic development in the Bozeman jurisdictional area By Resolution of the City Commission an Economic Development Loan Review Committee hereinafter referred to as Committee was formed to evaluate the feasibility and investment potential of proposed economic development projects Committee members include A Director of Planning or designee B Director of Operations or designee C A representative of the Gallatin Development Corporation D A representative of a local commercial lender organization E A representative of H R D C F A representative of the Capital Opportunities Board of Directors and G A principle owner partner of a business which has previously received an economic development loan from the City or County The members will be appointed by the City Commission and will serve two year terms Members may serve more than one two year term if re appointed by the City Commission Any organization which provides contract administration of the Fund shall waive its representation on the Committee for the period of the administrative contract The Committee will serve in an advisory role in recommending attractive economic development investment projects to the Bozeman City Commission The City Attorney shall serve as legal counsel to the Committee The City shall at a minimum maintain the following records regarding the Fund 353 sources of program income including interest earned a schedule of anticipated program income receipts e g a loan amortization schedule for each outstanding loan designated person s or entity ies responsible for tracking loan payments and servicing the loan s h policies and procedures for determining how the program income funds will be expended and for what activities names of the person s or board s responsible for ensuring compliance with applicable requirements dates and amounts of program income deposits and disbursements and the activities funded with program income ll ADMINISTRATION The Fund will be administered by the City Manager or by a consultant or contractor working under the supervision of the City Manager A maximum of ten percent of the fund balance may be used for administrative costs including but not limited to A Personal Services salaries benefits etc B Office Costs supplies postage telephone printing C Consulting D Legal assistance E Financial planning and loan packaging technical assistance F Travel and Training G Project Monitoring All costs shall be itemized including time and only the documented costs will be eligible as administrative costs All program income received by the City after close out of a CDBG Economic Development project is subject to the provisions of Title I all CDBG requirements that applied during the project until all CDBG grants received by the City are closed out by the Department of Commerce Annual reports explaining the activities of the fund shall be made to the Montana Department of Commerce Economic Development Division ll ELIGIBLE ACTIVITIES Priority will be given to businesses engaged in basic economic activities 50 or more of the gross revenues are derived from outside Gallatin County that provide quality jobs Quality jobs are defined as those where the combination of wages benefits and workplace environment contribute to a productive and satisfying work experience for employees The cost per job to be created or retained must not exceed 20 000 per job Loans that assist for profit entities must be determined to be appropriate as defined in and determined by following the procedures contained in the current Montana CDBG Application Guidelines and current HUD policy The City shall retain records to document compliance with this 2 354 requirement including the financial analysis conducted to determine whether the financial assistance to the for profit business was appropriate Typical eligible activities include land acquisition public facilities and other improvements such as water and sewer lines and access roads specific to the project loans for acquisition construction rehabilitation expansion or installation of commercial and industrial buildings facilities equipment or working capital and employee training The funds also may be used as a match to other funding sources as long as they are contingent upon approval of the other funding source IV ELIGIBLE APPLICANTS Eligible applicants are businesses located within the Bozeman City County Master Plan Area Applicants who do not meet eligibility criteria for the Fund will be referred to appropriate financing sources V APPLlCATION PROCEDURES All applicants should discuss their project with the staff prior to submittal of an application The applicant shall provide all information as requested in the application form which includes a business plan financial information employment projections and the source use and terms of all funds VI LOAN TERMS The maximum loan amount granted to anyone project from the City s Fund shall generally not exceed 1 00 000 00f4PQiQQP The Revolving Loan Fund amount must be matched on a 1 1 basis from another source i e private funds bank loan SBA other grants etc The term interest rate and repayment of the loan shall be determined after review of the application and shall be based on the project needs In no case will the minimum allowable interest rate be less than 5 All loans must be secured with a personal guarantee and any other reasonable source of available collateral VII APPLlCATION REVIEW These Funds will be open for application on a continuous basis Applications will be reviewed by the Economic Development Loan Review Committee within 30 days of the receipt of a complete application See AppendixWithin 15 days of completing its review of the application the Committee will then provide a written report of their recommendation for determining project 3 355 eligibility to the Bozeman City Commission If the recommendation is supportive of a loan the Committee will suggest the term and interest rate of the loan The report will be made at a regular meeting of the City Commission with a notice of the City s scheduled review of the application published in a newspaper of general circulation in the Bozeman area not less than seven 7 days prior to the regular meeting However confidential information such as financial data will not be made available for public review The objective of the Fund is to aid in the provision of quality employment opportunities for all qualified persons including those who currently have low incomes Applications will be reviewed on the following criteria The need for Fund assistance and the feasibility of the project as demonstrated by the Business Plan Experience and qualifications of the management team The company s growth potential and resultant community impact Degree of leverage with other investment including public and private sources Commitment to provide quality jobs The cost per job created or retained Increased tax base The Bozeman City Commission will make the final determination on all applications If there is not an adequate balance in the fund to finance an application the Commission may conditionally commit the available funds to a project as well as enough future funds to adequately support the project VIII ADOPTION AMENDMENT OF THESE GUIDELINES These Guidelines have been reviewed at a public meeting of the Bozeman City Commission and have been adopted by Commission Resolution No 3486 dated 2001 The Guidelines may be amended after review at a regular meeting by a majority vote of the Bozeman City Commission a notice of which shall be published in a newspaper of general circulation in the Bozeman area not less than seven days prior to the meeting 4 u 356 APPENDIX A CITY OF BOZEMAN ECONOMIC DEVELOPMENT REVOLVING LOAN FUND APPLlCATION FORM NAME OF APPLICANT NAME OF BUSINESS ADDRESS CONTACT PERSON TELEPHONE NO A GENERAL BUSINESS INFORMATION 1 Type of business business description 2 Number of years in business 3 Form of Business Organization Sole Proprietorship Partnership Corporation Other Names of Proprietor Partners Officers 5 Number of current employees Full Time Employees Part Time Employees EXPLANA TION OF NEED FOR LOAN 1 Provide a complete Business Plan which includes business description and products services offered discussion of present or proposed market including future projections with explanation of how the information was developed market surveys etc Document all identified potential markets with contracts letters etc 2 Provide a complete budget of project including the source use terms and payback of all funds for the entire project 3 Provide the following Financial Exhibits for the last three years Balance Sheet Profit and Loss Statement Cash Flow Statement Reconciliation of Net Worth Aging of Accounts Receivable and Payable 357 The above documents must be compiled or reviewed by an independent CPA with full disclosure notes All financial information must be signed by a responsible officer of the business 4 Provide the following earnings projections for 3 years Balance Sheet Profit and Loss Statement Cash Flow Statement There must be no time period gaps between the historical statements and the projected statements The financial statements must not be dated more than 90 days prior to the date of application Earnings projections must include a projected monthly cash flow analysis for at least one year and until the break even point is projected to be reached A businesses that experiences regular or occasional cyclical variations in cash flow must provide a narrative explanation of the reason s for the occurrence of the cycles and the effects if any on the business ability to meet its debt obligations 5 Provide descriptions of all existing and projected debts and lenders annual debt service amount and any related loan requirements 6 Provide information on working capital needs and verify through cash flow projections explaining changes in inventory and receivables 7 Provide current personal balance sheets for each individual with 10 or more ownership in the project as well as a release from principal owners of the business allowing a personal credit history check by the City as part of the application review b HIRING AND TRAINING PLANlNFORMATION The City of Bozeman Human Resource Development Council and the Bozeman Branch of the Montana Job Service will coordinate the development and implementation of Hiring and Training Plans for businesses seeking Economic Development Revolving Loan Fund assistance from the City of Bozeman It is required that businesses agree to comply with and follow their final Hiring and Training Plan 358 u NOTICE OF INTENTION TO ADOPT REVISED GUIDELINES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT CDBG ECONOMIC DEVELOPMENT REVOLVING LOAN FUND NOTICE IS HEREBY GIVEN that the City Commission of the City of Bozeman intends to consider adoption of Commission Resolution No 3488 revising guidelines for the Community Development Block Grant CDBG Economic Development Revolving Loan Fund superseding Commission Resolution No 3200 at its regular meeting to be held at 6 00 p m on Monday October 22 2001 Copies of the revised guidelines are on file with the Clerk of the Commission of the City of Bozeman for inspection by the public Any and all interested persons are invited to attend and to state their support of or opposition to the adoption of the revised guidelines for the Community Development Block Grant Economic Development Revolving Loan Fund For additional information please contact Robin Sullivan Clerk of the Commission at 411 East Main Street Bozeman Montana or telephone 582 2320 If you have a disability that requires assistance please contact the City of Bozeman s ADA Coordinator Ron Brey at 582 2305 TOO 582 2301 DATED this 10th day of October 2001 ROBIN L SULLIVAN Clerk of the Commission Legal Ad Publish Sunday October 14 2001 359