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<br />6. The outline of the revolving loan proposed for Computype includes the <br />following: <br /> <br />a. An overall loan of$1,150,OOO with First Bank providing $500,000 and <br />the City providing $600,000. (First Bank will service the loan and repay <br />the City montWy). <br /> <br />b. The new coating machine as the City's first security for the teon of the <br />loan. <br /> <br />c. The teon of the loan to be 7 years, with the possible balloon payment <br />earlier to match the teon of the building lease. <br /> <br />d. The interest rate to be fixed at 5-3/4% to 6%. <br /> <br />e. There would be no prepayment penalty. <br /> <br />f. A provision in the loan agreement allowing Computype an incentive to <br />own their building or move to a larger Roseville facility after 4 years, in <br />which the City would peonanently defer all or a portion of the <br />outstanding debt. <br /> <br />g. A penalty clause in which the loan is due and payable immediately if <br />Computype moves its plant from Roseville. <br /> <br />7. The funds to be allocated for this project would be from the TIP pool, <br />preferably in calendar year 1995. <br /> <br />Alternatives: <br /> <br />1. Provide entire loan (no partner). <br />2. Provide smaller portion of loan with number of partners. <br />3. Provide loan (with security) and have bank as servicing partner. <br />4. Finance land and building acquisition/construction. <br />5. Do nothing at this time. <br />