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REQUEST FOR COUNCIL ACTION DATE: 9-26-94 ITEM NO.: Department Approval: Manager Reviewed: Agenda Section: Report and Recommendation Item Description: Computype Revolving Loan Agreement - Conceptual Approval. Background: 1. The City of Roseville has been approached by one of the community's faster growing companies, requesting assistance from the Industrial Development Revolving Loan Program. Computype's main plant and headquarters is located at 2285 W. County Road "C" and has nearly 100 employees in their 55,000 sq. ft. leased building. The company designs, makes, and services precision identification products such as bar coding and labeling in the United States and Europe. At this time, the company is not interested in owning a building. 2. In the near future, Computype must decide whether to renovate their leased site and add 20,000 sq. ft. on the existing site (and 20 to 50 new jobs) or move to a new leased location in a northern suburb (the median wage at Computype is $16.00). In addition, Computype needs to add another made-to-order piece of coating machinery to serve their continued growth. 3. The City staff has met with Computype Chief Operating Officer Rick Huntsinger and their real estate and financial consultants. First Bank of S1. Paul provides Computype's credit line. The City staff and First Banks are attempting to assemble a loan package to help keep the company in the current Roseville location and expand at that site. A conceptual approval of the loan agreement is necessary at this time. 4. The Industrial Development Revolving Loan Program has been used in the past, either by the City alone or in coordination with Ramsey County. 5. The loan would be used for building renovation and improvements to the heating and ventilating system ($350,000 estimate) and for new coating equipment ($800,000).