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HomeMy WebLinkAboutResolution 1998 (15) • • A RESOLUTION ACCEPTING SPONSORSHIP OF A COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG -ED) FROM THE WISCONSIN DEPARTMENT OF COMMERCE (LONG TERM CARE GROUP, INC.. PROJECT) RESOLUTION NO. L L 1 1 / 8) St. Croix County, Wisconsin WHEREAS, the Wisconsin Department of Commerce awards grants to local units of government, including counties, under the Community Development Block Grant Economic Development (CDBG -ED) Program; and WHEREAS, on 17 June 1997 St. Croix County adopted policies and procedures guidelines relating to the future administration of a Revolving Loan Fund that is established with a grant from the Department of Commerce; and WHEREAS, Long Term Care Group, Inc., proposes to invest approximately $10,670,000 to build and create a new service center in Hudson, Wisconsin resulting in the creation of two hundred twelve (212) new full -time positions by 31 December 2001; and WHEREAS, Long Term Care Group submitted a pre - application for a CDBG -ED Loan from Commerce, and subsequently, Commerce completed its financial underwriting and credit analysis of the company and determined that it qualifies for a supplemental Block Grant Loan; and WHEREAS, Commerce Secretary William J. McCoshen has offered Long Term Care Group, Inc., up to one million and 00 /100 dollars ($1,000,000) in supplemental financing assistance; and WHEREAS, Secretary McCoshen has offered to provide the financing assistance through a grant of up to one million six thousand and 00 /100 dollars ($1,006,000) to St. Croix County, which in turn, would loan up to one million and 00 /100 dollars to Long Term Care Group, Inc., and the remaining six thousand and 00 /100 dollars would be retained by St. Croix County or its designated loan fund administrator, to cover eligible administrative costs associated with the loan; and WHEREAS, the collateral to secure St. Croix County's CDBG -ED Loan to Long Term Care Group is an assignment of a Certificate of Deposit held in a Wisconsin bank, or any similar arrangement acceptable to Commerce; the amount of the Certificate will be equivalent to fifty percent (50 %) of the principal loan balance outstanding, adjusted on an annual basis. THEREFORE, BE IT RESOLVED, by the St. Croix County Board of Supervisors that: 1. St. Croix County, Wisconsin approves the sponsorship of a Community Development Block Grant (CDBG) of up to one million six thousand and 00/100 dollars ($1,006,000) from the Wisconsin Department of Commerce. 2. In accordance with standard CDBG -ED loan documents, as prepared by Commerce, up to one million and 00 /100 dollars ($1,000,000) would be loaned to Long Term Care Group, Inc., to assist with building, creating, and staffing a new service center in Hudson, Wisconsin, an investment of approximately $10,670,000. 3. The collateral to secure St. Croix County's loan to Long Term Care Group, Inc., is an assignment of a Certificate of Deposit held in a Wisconsin bank, or any similar arrangement acceptable to the Department of Commerce. The amount of the Certificate will be equivalent to fifty percent (50 %) of the principal loan balance outstanding, adjusted on an annual basis. As a result of the collateral, a default by Long Term Care Group, Inc., will not create a financial liability for St. Croix County. 4. To assist St. Croix County with the management of the CDBG -ED Loan, West Central Wisconsin Regional Planning Commission (WCWRPC) is hereby designated as the administrator of the loan to Long Term Care Group, Inc. Under the direction of the County Administration Committee, WCWRPC is hereby authorized to commence work on the tasks required to implement the CDBG -ED Loan to Long Term Care Group, Inc. 5. The repayment of the Long Term Care Group, Inc., loan shall capitalize a county wide Revolving Loan Fund as a source for supplemental financing for new or existing businesses in St. Croix County, Wisconsin in accordance with previously adopted policies and procedures guidelines. WCWRPC shall serve as the loan fund administrator in order to assist St. Croix County's loan review committee with subsequent loans from the Revolving Loan Fund account. Dated this day of September, 1998 Offered by: Administration Committee NEGATIVE AFFI TIVE Daryl Standafer Linda ey ' omas O'Connell / A 4 1 4 / . Nan ' Bie . gel • Gerald Peterson S't TE Or WISCONSIN CuUN'i f .)F ST. CROIX I, Sue E. Nelson, St. Crobt County Clerk, DO HEREBY CERTIFY that the egoing is a true and correct adopted by the County B ard.p(a 1'17 at their meeting held �� Sue E. Nelson. St. Croix County Cieuk • A RESOLUTION TO APPROVE THE POLICIES AND PROCEDURES GUIDELINES FOR ADMINISTRATION OF A REVOLVING LOAN FUND ESTABLISHED WITH FUNDS FROM A DEPARTMENT OF COMMERCE GRANT RESOLUTION NO. / i7t Cq 1- 6 St. Croix County, Wisconsin WHEREAS, the Wisconsin Department of Commerce awards grants to local units of govenunent, including counties, under the Community Development Block Grant Economic Development (CDBG ED) Program; and WHEREAS, said grants are paid back to the respective local -unit of government according to the terms and conditions of the loans; and WHEREAS, if St. Croix County is awarded a grant, it will establish an economic development revolving loan fund under the guidelines of the Wisconsin Department of Commerce; and WHEREAS, St. Croix County has prepared policies and procedures guidelines, a copy of which is attached to this resolution, to oversee administration of all program income which may accrue to a special revolving loan fund account to be held by St. Croix County. THEREFORE, BE IT RESOLVED, by the St. Croix County Board of Supervisors that: 1. The policies and procedures guidelines relating to the administration of a Revolving Loan fund established with a grant from the Wisconsin Department of Commerce are hereby approved; 2. The Loan Advisory Committee shall have responsibilities as specified in the revolving loan fund guidelines to carry out the administration of the program. Dated this 1 t i day of n u_,r`)-- , 1997 Offered by Administration Co NEGATIVE AFFIRMATIVE D: er STATE OF WWSOONStN T' F f COUNTY OF 3T: CROGC !� .127.f..!_44/ 1, Sue E Nelson St. C obt Lee Kellaher, . �-t-t .< ('�* Cenve 0.14 to CRY CERTIFY that the toregshtp lsahwand!amid of aclopSd by County Board atCupervisas u moos 0 •. =ell a t tar meeting be u.w 1 7, 15'77 Sue E. Nelson. St. Croix County Clock . • • Eligible Applicants/Businesses: Applications may be submitted by a sole proprietor or chief executive officer of any business wishing to expand an existing operation or establish a new operation in St. Croix County. No member of the governing body, loan review committee, or any other official, employee, or agent of the county who exercises decision - making functions or responsibilities in connection with the implementation of this program is eligible for financial assistance under the St. Croix County RLF program. No loans will be made which are in conflict with Wisconsin Statutes (i.e. private interest in a public contract prohibited). Applicants shall not be disqualified based on age, race, religion, color, handicap, sex, physical condition, development disability, sexual orientation or national origin. Eligible Activities: Program loans shall be available to eligible applicants for the following activities: 1) The acquisition of land, buildings, and fixed equipment; 2) Site preparation and the reconstruction of buildings or the installation of fixed equipment; 3) Clearance, demolition, or the removal of structures or the rehabilitation of buildings and other such improvements; 4) The payment of assessments for sewer, water, street, and other public utilities if the provision of the facilities will directly create or retain jobs; and 5) Working capital (inventory and direct labor costs only). Ineligible Activities: Program loans shall not be available for the following activities: 1) Refinancing or consolidation of existing debt; 2) Reimbursement for expenditures prior to loan approval; 3) Specialized equipment that is not essential to the business operation; 4) Residential building construction or reconstruction; 5) Routine maintenance; 6) Professional services such as feasibility and marketing studies, accounting, management services, and other similar services (legal services incurred in the closing of a RLF loan are eligible); and 7) Other activities that the loan review committee may identify during the administration of the program. Jneligible Businesses: Program loans shall not be available for the following businesses: 1) Speculative investment companies; 2) Real estate investment companies; 3) Lending institutions; 4) gambling operations; 5) Non -public recreation facilities; and 6) Other businesses not serving the interests of St. Croix County. J'rivate Funds Leveraged: Loan amounts are subject to the availability of program funds. The applicant must leverage a minimum of one dollar ($1.00) of private funds for every one dollar ($1.00) of loan funds requested. Higher leverage may be required at the discretion of the loan review committee. Loan Funds Per Job Created: At least one (1) full -time position or full -time equivalent must be created for every $15,000 of program funds requested. The loan review committee may require lower cost jobs where warranted (Le. taking into consideration type of jobs, hourly wage, job training required, and business start-up endeavors). Financial Feasibility and Business Viability: The applicant must demonstrate that the proposed project is feasible and the business will have the economic viability to repay the funds. 2 ST. CROIX COUNTY WISCONSIN • COUNTY BOARD OFFICE � ST. CROIX COUNTY GOVERNMENT CENTER °Oti MUM= 1101 Carmichael Road ' �� ` 6 I .,1 !VI ' ""_ i Hudson, WI 54016-7710 1 ■ /`�II�Ir �,1 _ (715) 386 -4610 DATE: 4 June 1997 TO: Honorable Robert Boche, Chair St. Croix County Board of Supervisors FROM: Daryl Standafer, Chair t)• 5. Administration Committee RE: Proposed Policies and Procedures - Revolving Loan Fund Please be advised that the Administration Committee completed its work on the proposed policies and procedures relating to the administration of a revolving loan fund. We respectfully request that the County Board consider adoption of the policies and procedures at the meeting on 17 June 1997. We also request that you keep the following items in mind when you consider the policies: - the County's adoption of the policies does not automatically establish a revolving loan fund. Instead, it merely creates the foundation of a loan fund that a Department of Commerce grant would establish for such a purpose. Without a D.O.C. grant, there is no County administration of a revolving loan fund. In order for the County Board to be comfortable with understanding the terms and conditions by which eligible business may qualify for a supplemental loan, it is necessary to establish the policies and procedures. - the administration of a loan fund does not replace conventional bank financing nor does it mean that the County will be approving high risk loans. The supplemental loans will require -that the bulk of the financing request ( say 60 to 70 %) will be financed by a primary lender. In addition, the small business owner is required to contribute a down payment. The revolving loan fund represents the last piece of the financing puzzle and may include only 15 to 20% of the project. All loan requests will be subjected to stringent credit tests to ensure that potential loans are of reasonable risk. All loans will be backed by pledges of collateral plus personal guarantees and promissory notes from the business owner. - the Department of Commerce reports that 187 different units of government, i.e. towns, villages, cities, and counties administer a revolving loan fund. This is a strong indication that supplemental loan funds are readily used by all units of government in Wisconsin. Please join the Administration Committee in the adoption of the loan fund policies. • • Eligible Applicants/Businesses: Applications may be submitted by a sole proprietor or chief executive officer of any business wishing to expand an existing operation or establish a new operation in St. Croix County. No member of the governing body, loan review committee, or any other official, employee, or agent of the county who exercises decision - making functions or responsibilities in connection with the implementation of this program is eligible for financial assistance under the St. Croix County RLF program. No loans will be made which are in conflict with Wisconsin Statutes (i.e. private interest in a public contract prohibited). Applicants shall not be disqualified based on age, race, religion, color, handicap, sex, physical condition, development disability, sexual orientation or national origin. Eligible Activities: Program loans shall be available to eligible applicants for the following activities: 1) The acquisition of land, buildings, and fixed equipment; 2) Site preparation and the reconstruction of buildings or the installation of fixed equipment; 3) Clearance, demolition, or the removal of structures or the rehabilitation of buildings and other such improvements; 4) The payment of assessments for sewer, water, street, and other public utilities if the provision of the facilities will directly create or retain jobs; and 5) Working capital (inventory and direct labor costs only). Ineligible Activities: Program loans shall not be available for the following activities: 1) Refinancing or consolidation of existing debt; 2) Reimbursement for expenditures prior to loan approval; 3) Specialized equipment that is not essential to the business operation; 4) Residential building construction or reconstruction; 5) Routine maintenance; 6) Professional services such as feasibility and marketing studies, accounting, management services, and other similar services (legal services incurred in the closing of a RLF loan are eligible); and 7) Other activities that the loan review committee may identify during the administration of the program. Ineligible Businesses: Program loans shall not be available for the following businesses: 1) Speculative investment companies; 2) Real estate investment companies; 3) Lending institutions; 4) gambling operations; 5) Non - public recreation facilities; and 6) Other businesses not serving the interests of St. Croix County. Private Funds Leveraged: Loan amounts are subject to the availability of program funds. The applicant must leverage a minimum of one dollar ($1.00) of private funds for every one dollar ($1.00) of loan funds requested. Higher leverage may be required at the discretion of the loan review committee. Loan Funds Per Job Created: At least one (1) full -time position or full-time equivalent must be created for every $15,000 of program funds requested. The loan review committee may require lower cost jobs where warranted (i.e. taking into consideration type of jobs, hourly wage, job training required, and business start -up endeavors). Financial Feasibility and Business Viability: The applicant must demonstrate that the proposed project is feasible and the business will have the economic viability to repay the funds. 2 RESOLUTION AUTHORIZING MARKETING AND REMOVAL OF ARR SITE BUILDING AND EQUIPMENT Resolution No. / 6 rf �1 St. Croix County, Wisconsin WHEREAS, St. Croix County acquired title to the American Resource Recovery waste - to- energy facility property in late 1997; and WHEREAS, options for the property have been studied by the Finance Committee including: keeping the property; keeping the land and selling or disposing of the building and equipment; and selling the land, building, and equipment; and WHEREAS, the Finance Committee has concluded that keeping the land and selling or disposing of the building and equipment is the preferred option. THEREFORE, be it resolved by the St. Croix County Board of Supervisors that the Finance Committee recommendation be and is hereby approved and that the Finance Committee proceed with the plan to sell or dispose of the building and equipment and retain in the County the title to the land; FURTHER, be it resolved that should such disposition of the property require the expenditure of County funds, it shall come back to the County Board for approval. FURTHER, be it resolved that any contract, bill of sale, or other document transferring ownership of the building and equipment be signed on behalf of St. Croix County by the Board Chair and County Clerk. Dated this (. day of 'J , 1998. Offered by: NEGATIVE AFFIRMATIVE IOLA" Ar / 1 Original Resolution was offered by the Finance Committee and amended by the Board of Supervisors prior to adoption.