HomeMy WebLinkAboutPromissory Note, Loan Agreement, and Draw Certificate 1 with Board of Investments for South 8th Avenue
Commission Memorandum
REPORT TO: Honorable Mayor and Commission Members
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Authorize City Manager to Sign the Promissory Note, Loan Agreement,
and Draw Certificate No. 1 with the Board of Investments of the State of
Montana – INTERCAP LOAN, for financing the reconstruction of South
8th Avenue.
MEETING DATE: June 25, 2012
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve City Manager’s Signature on the Promissory Note, Loan
Agreement, and Draw Certificate No. 1 with the Board of Investments of the State of Montana,
for financing the reconstruction of South 8th Avenue.
BACKGROUND: The Montana Board of Investments - Intercap Program has approved the
City’s request for a loan of up to $1,700,000 for the reconstruction of South 8th Avenue. The
City Manager is designated to sign the Promissory Note, Loan Agreement, and Draw Certificate
No. 1 document after the Commission’s adoption of Resolution No. 4385 (also on the agenda.)
These agreements are integral to receiving the loan funds from the Board.
25
FISCAL EFFECTS: Once the Promissory Note, Loan Agreement, and Draw Certificate No. 1
are signed, the City will receive the amounts necessary to pay for up to $1,273,000 for the
reconstruction project. We anticipate a series of draws over this summer, as construction bills
are paid. Interest will accrue from the date of our loan draws, and semi-annual payments will be
due to the Board.
Report compiled on: June 15, 2012
Promissory Note
Loan Agreement
Draw Certificate No. 1
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48