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<br />" <br /> <br />5. The loan would be used for building renovation and improvements to the <br />heating and ventilating system ($350tOOO estimate) and for new coating <br />equipment ($800,000). <br /> <br />6. The outline of the revolving loan proposed for Computype includes the <br />following: <br /> <br />a. An overall loan of$l,150,OOO with First Bank providing $450,000 and <br />the City providing $700,000. (First Bank will service the loan and <br />repay the City monthly). <br /> <br />b. The new coating machine as the City's first security for the term of the <br />loan. <br /> <br />c. The tenn of the loan to be 8 years, with the possible balloon payment <br />earlier to match the tenn of the building lease. <br /> <br />d. The interest rate to be fixed at 6% and 6-1/2% (2 points under prime). <br /> <br />e. There would be no prepayment penalty. <br /> <br />f. <br /> <br />A provision in the loan agreement allowing Computype an incentive to <br />own their building or move to a larger Roseville facility after 5 years, <br />in which the City would pennanently 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 Rosevil1e. <br /> <br />7. The funds to be allocated for this project would be from the TIF poolt in <br />calendar year 1995. <br /> <br />Alternatives: <br /> <br />1. Provide entire loan (no partner). <br />2. Provide smaller portion of loan with nwnber 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 /> <br />,---. <br /> <br />1 <br /> <br />, <br />