The URL can be used to link to this page

Home My WebLink About35010 / 88-237 . � Resolution #237 AUGUST 18, 1988 RESOLUTION (APPROVED LOST LAID OVER WZTHDRAWN ) PURPOSE: APPROVE AGREEMF,NT WITH LOCAL FINANCIAL INSTITUTIONS FOR ESTABLISHMENT OF A SMALL BUSINESS LOAN POOL (CDBG) INITIATED BY: CITY ADMINISTRATION WHEREAS, the rehabilita[ion and revi[alization of the Cen[ral City Area will promote employment and preserve and enhance Che tax base o£ [he City and is [herefore essential [o [he welYare and well-being of [he en[ire Cicy of Oshkosh; and WHEREAS� the es[ablishment of a Public-PrivaCe Loan Pool providing for low in[eres[ loans for qualifying projects and aciivi[ies wiihin the Cen[ral Ci[y Area is necessary and desirable and serves a pvblic purpose; and WHEREAS, ihe Ci[y has es[ablished a Communi[y Developmen[ Block Gran[ Small Business Loan Pool fund ander which expenditurea to [}�e Loan Pool are authorized; and . WNEREAS, several local Financial Ins[itvtions, which include bu[ is no[ limited [o the following: Valley Bank of Oshkosh; M & I Western Sta[e Bank; Firs[ Wisconsin National Bank of Oshkosh; and Bank One, Oshkosh, N.A. � have agreed [o particlpaCe in the Loan Pool in order to promote employmen[ and businesa oppor[uni[ies. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh [ha[ the proper City ofEicials are here6y au[horized and direc[ed [o en[er into [he at[ached Loan Pool AgreemenL Moniea for this purpose are hereby appropriated from Account No. 321817 - Sma11 Busi�ess Loan Pool (CDBG). and $69, 162 reallocation of funds from Housing Rehabilitation Program. SGSYITI'ED BY _�__ APPROVED L%%�^�-- - 19 - . Resolution H237 LOAN POOL AGREEMENT 1988 THIS AGREEMENT, dated this _ day of , 1988, by and between the City of Oshkosh, a Wisconsin Municipal Corporation, hereinafter re£erred to as "City", and the following participating financial institutions, hereinafter referred to as "Financial Institutions", valley Hank o£ Oshkosh M & I Western State Bank First Wisconsin National Bank of Oshkosh Bank One, Oshkosh, N.A. each of which is a Federal or State banking corporation located in Oshkosh, Wisconsin. WITNESSETH: Whereas, the rehabilitation and revitalization of the Central City Area will promote employment and preserve and enhance the tax base of the City and therefore is essential to the welfare and well- being of the entire City of Oshkosh, and Whereas, the establishment of a Public-Private Loan Pool (hereinafter referred to as "Loan Pool") , providing for low interest loans for qualifying projects and activities within the Central City Area is necessary and desirable and serves a public purpose, and Whereas, the City has established a Community Development Block Grant Small Business Loan Pool Fund under which expenditures to the Loan Pool are authorized, and - 1 - - 19a - . � Resolution k237 Whereas, the Financial Institutions have agreed to participate in the Loan Pool in order to promote employment and business opportunities: NOW, THEREFORE, the parties hereto do mutually agree as follows: 1. PURPOSE. The purpose of the Loan Pool established by this Agreement is to improve the viability of the Central City Area by providing incentives to stimulate investment in it through favorable interest rate loans to qualified borrowers for specified eligible projects. This Agreement is designed and intended to promote employment and business opportunities and to preserve and enhance the tax base of the City, and such purposes are declared to be public puxposes for which public funds may be expended. 2. TERI• . The term of this Agreement shall 6e until December 31, 1989, unless extended by mutual agreement. 3 . ELIGIHLE AREA. The area within which projects may be eligible for loans under this Agreement is the area indicated on the map attached hereto as Exhibit A, generally described as that part of the City of Oshkosh known as the Central City Area, bounded on the west by a tier of properties located on the west side of ohio and Wisconsin Streets; on the north by a tier of properties located on tha north side of Irving and Merritt Avenues; on the east by a tier of properties located on the east side of Jefferson and Broad Streets and Lake Winnebago; and on the south by a tier of properties located on tha south side of South Park and 14th Avenues. 4. ELIGIBLE IMPROVEMENTS. Under this Agreement, loans may be made to tenants or owners of structures or 6usinesses presently located or in the process of relocating within the Central City Area for one or more oP the following purposes: ' 2 _ - 19b - , Resolution #237 a. Substantial renovation, rehabilitation or reuse of existing buildings for commercial, industrial or mixed uses allowed by zoning and otherwisa compatible with nearby land uses and activities. b. New construction of commercial or mixed use buildings. c. Building acquisition in connection with a substantial rehabilitation project or the expansion of an existing business. d. Land acquisition in connection with a substantial rehabilitation project, expansion of an existing business, or new construction. e. Private developer share of certain semi-public or necessary private improvements, including skywalks, plazas, parking and landscaping. f. Expenditures incurred with regard to trade fixtures, furniture, special equipment or inventory in conjunction with substantial rehabilitation or expansion of an existing business or commencement o£ a new business. 5. INELIGIBLE PROJECTS OR ACTIVITIES. The following shall be ineligible for any loan hereunder: a. Any expenses incurred prior to written notification of approval of a loan by the Loan Pool Committee created under paragraph 11 of this Agreement, provided that this shall not preclude retirement of existing mortgage debt as authorized hereunder. . b. Any loan to any person, firm or corporation where a con£lict of interest would occur as a result of such loan. A determination of the existence of such a conflict of interest shall be made by the Loan Pool Committee. - 3 - - 19c - Resolution N237 6. COMMITMENT OF FUNDS. The Lending Institutions hereby agree to commit funds for the purposes contained in this Agreement in the amount of EIGHTY THOUSAND AND NO/100 DOLLARS ($80, 000.00) per lender, with the exception of First Wisconsin Bank, which will commit ONE HUNDRED SIXTY THOUSAND AND NO/100 DOLLARS ($160,000.00) , and the City agrees to commit ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000. 00) from the Community Development Hlock Grant Small Business Loan Pool account for such purposes. Such amounts shall not be decreased but may be increased by mutual agreement oP all the Lending institutions and the City. All such funds shall be available as of the date of this Agreement and shall be contributed on a pro rata basis to the principal amount of each loan granted under this Agreement unless the parties otherwise agree. Each loan shall be served by the servicing agency designated under paragraph 9 of this Agreement. 7 . LOAN TERMS. All loans granted undar this Agreement shall be subject to the following terms and conditions: a. The minimum amount of any loan granted hereunder shall be TWENTY-FIVE THOUSAND AND NO/100 DOLLARS ($25,000.00) . b. All loans shall be secured to the total asount of the their principal amounts by a mortgage on the real estate which is the subject of the Eligible Improvement and as may be required by the Loan Pool Committee. If any loan is part of a "financial package", the Loan Pool funds shall be secured separately. The amount of participation of the Lending Institutions and the City in cash, shall be evidenced by a participation certificate issued by the servicing agency. In no case shall that portion of the loan financed by the City exceed the amount o£ funds committed by the City under paragraph 6 above. - 4 - - 19d - Resolution #237 c. Each Financial Institution and the City shall share proportionately as to their commitment to each loan made from the Loan Pool fund as to profits and risk. All payments oE principal on each loan shall ba paid over to each of tha Financial Institutions and the City on a pro rata basis in accordance with their contribution to the loan. d. No loan shall be mada under this Agreement to any party who does not meet the borrowing standards oP the servicing agency administering the loan. e. If loan origination fees, points or any other service charges are applicable, they shall not be charged on the City's portion of the loan. f. No more than 50 percent of the proceeds of any loan shall be used for land acquisition or retirement of existing mortgage debt. g. All loan documents executed pursuant to this Agreement shall be on forms provided by the servicing agency. h. Each loan approved under this Agreement must create at least one (1) low- and moderate-income employment opportunity for each 510, 000. 00 contributed by the City. i. Each loan shall be repaid in equal installments with payments due on the first day of each month following its closing, or as otherwise may be determined by the Loan Pool Committee. No loans shall have a term of more than twenty (20) years. j . The interest rate of each approved loan shall be a weighted blended rate resulting from the interest rate on the City's funds and the interest rate on the Financial institutions funds. The - 5 - - 19e - � Resolution k237. City's rate shall be the rate the City received on the most recent annual temporary note issue and the Financial Institution's rate shall be at one (1) point below the prima rate at the time of application, to be adjusted January 1. k. Payments of interest shall be made to the Financial institutions and the City in accordance with their contribution to the loan and tha interest rate allocated to their portion of the loan. 1. No loan shall be subject to any penalty for prepayment. Each loan may be subject to acceleration of maturity and increase of interest rate in the event of default in payment of any installment of principal or interest, or of any other material term or condition of such loan, including commitment of waste. � m. The proceeds of each loan shall be paid in the name of the borrower by the servicing agency and shall constitute a loan advance in tha borrower's name. The servicing agency shall not disburse any of the loan proceeds to any contractor, subcontractor or materialman until it has satisfactory written evidence that all work has been completed satis£actorily and that all materialmen, laborers and subcontractors have been paid or have delivered releases of their rights to assert mechanic's or any other liens upon the property. n. Any work performed with loan pool funds obtained hereunder shall be in full and complete compliance with all applicable laws, ordinances� rules and regulations of the United States, State of Wisconsin and the City of Oshkosh. Copies of any inspection report pertaining to any such work or to the property upon which it has been or is to be performed may be obtained by the Financial Institutions and the City. - 6 - - 19f - Resolution #237 o. All loans shall be evidenced by promissory notes, mortgages, security agreements and financing statements in forms and containing terms and conditions which are customary and usual in similar commercial transactions. 9. SERVICING AGENCY. The servicing agency that shall process and administer a loan made hereunder shall be the Financial Institution which is selected by the recipient of a loan. The servicing agency shall process and administer each such loan in the sanner which is usual and customary with regard to other loans which it makes under similar circumstances. 10. APPLICATION PROCEDURE. a. Prior to submission of an application for a loan under this Agreement, the applicant shall meet with appropriate staff members of the City to determine if the proposed improvement will meet City requirements with respect to 6uilding, zoning and other applicable laws, ordinances, rules and regulations. The initial contact shall be mada with the Director of Community Developsent of the City, or his or her designee. The applicant shall be responsibla for complying with all City requirements and procedures as they apply to the project. The applicant shall provide a narrative e�tplaining the intent, scope, location and anticipated time schedule of the proposed project or activity and, if applicable, a plot plan and other design drawings sufficient to portray the work that is being proposed. The City shall prequalify the eligibility of the proposed project by applying the following criteria: (1) Compliance or ability to comply with applicable building, zoning and related Codes and Ordinances. - � - - �99 - Resolution #237 (2) Compliance with adopted City Plans and Redavelopment areas, as applicable. (3) Conformance with applicable U.S. Department of Housing and Urban Development regulations. (4) Compliance with paragraphs 3 and 4 of this Agreement. b. Applicants shall be notified in writing of the project' s eligibility status within ten (10) calendar days of the complete application submission. c. Once a project has been determined to be eligible, the applicant shall submit all required information to the servicing agency. Such information, together with the loan application, shall be delivered by the servicing agency to the members of the Loan Pool Committee for review and analysis. d. The loan application shall then be reviewed by the Loan Pool Committee. All loan applications shall require the approval of the Loan Pool Committee, whose decision shall be final. e. Administrative procedures concerning the application, processing and administration o£ loans under the Loan Pool Program and this Agreement, not specifically set forth in tha provisions of this Agreement, shall be subsequently established and agreed upon by the parties. 11. LOAN POOL COMMITTEE. a. A Loan Pool Committee shall be created consisting of one (1) representative of each of the participating Financial Institutions and the City. - 8 - - 79h - Resolution #237 b. The purpose of this Committee shall be to make decisions regarding the approval or rejection of applications for loans from the Loan Pool. c. At least the memher o£ the Committee representing the City, and members of the Committee from at least three (3) of the four (4) Financial Institutions must be present to constitute a quorum. A quorum must be present to constitute a valid vote on the approval of any loan. Also, in order to constitute a valid vote on the approval of any loan, said vote shall be in the affirmative by at least a majority o£ those participating in tha loan. At least 75 percent of the Financial Institutions shall participate with the City in any loan. All of the four (4) Financial Institutions shall have the opportunity to participate in any loan. Each of them may decline such participation. Those Financial Institutions which do participate in a loan agree to share pro rata in their portion of the loan. No loan applications may be approved without the approval of the Committee. The criteria used by the Committee in making decisions on loan applications shall be those normally utilized by the participating Financial Institutions for similar, non-subsidized loans. All actions of the Committee other than loan approval shall require the affirmative vote of a majority of a quorum of the Committee. 12 . STATUS OF CITY. The parties mutually agree that all actions of tha City pursuant to this Agreement shall be as an independent contracting party and not as an agent of any Financial Znstitution. - 9 - - 19i - Resolution #237 13. This Agreement may be amended at any tima by the unanimous consent of the Chief Executive Officers of the Financial Institutions, and the City. FINANCIAL ZNSTITUTIONS CITY OF OSHKOSH DENNIS J. NOONE, PFiESIDENT WILLIAM D. FRUEH FIRST WISCONSIN BANR OF OSHKOSA CITY MANAGER ROBERT M. SARRER, PRESIDENT DONNA 0. SERWAS VALLEY BANR OF OSHKOSH CITY CLERK NANCY ROBERTS� PRESIDENT M & I WESTERN STATE BANK RICHARD L. ALLEN� PRESIDENT SANR ONE, OSHICOSH, N.A. sblpagmt - lo - - �91 - o � ^'I V Q C � � !_� C O LL Y U' " C O� ..� N � � E U 0 V L`-' W J .r -+ � _. p Z L � O '+� Y �O d Q . }a 3 W � � v tn��.v i' O tD^H QtD H C i J `-'Z `-'Z E � �n �W ZNNN 2NNN QI N � W W W W O W W W L C C Q Q Z d Q Q Z 2 O�O '-� I� ¢..� v� [D N N � m f .. � .. p � O � � ✓� O � O � S_ i� -� v� p vl �O Q� F- K H K � QrCrtn 6 £U £ U