CCR2009077-RLFManualAmend
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #077-2009
APPROVAL OF AMENDMENTS TO THE REVOLVING LOAN FUND MANUAL
WHEREAS, The City approved a Revolving Loan Fund (RLF) Manual on May 14, 1991
in accordance with the Wisconsin Department of Development, as a participant in the
Wisconsin Development Fund (WDF) Loan Program; and
WHEREAS, The Manual was rewritten to conform with current Wisconsin Department of
Commerce requirements, and renamed “City of Muskego Revolving Loan Fund
Program – Policies and Procedures Manual” as approved by the Common Council on
June 24, 2003; and
WHEREAS, The Manual was amended to increase the awareness of the Revolving
Loan Fund process of the RLF Loans and the amendments were approved by the
Community Development Authority on October 21, 2008; and
WHEREAS, The amendments required approval of the WI Department of Commerce;
and
WHEREAS, The Committee of the Whole discussed the Revolving Loan Fund program
and recommended the Community Development Authority (CDA) administer the RLF
plan.
NOW, THEREFORE, BE IT RESOLVED, That the Common Council of the City of
Muskego, upon the recommendation of the Community Development Authority, does
hereby authorize the amendments to the Revolving Loan Fund (RLF) Manual in
accordance with the Policies and Procedures Manual amendments attached.
TH
DATED THIS 26 DAY OF MAY , 2009.
SPONSORED BY:
Alderman Kert Harenda
Alderman Keith Werner
This is to certify that this is a true and accurate copy of Resolution #077-2009 which
was adopted by the Common Council of the City of Muskego.
____________________________
Clerk-Treasurer
5.5.01 Project Application. SEWRPC staff shall review the application for completeness
and verify that the proposed project meets the minimum requirements provided in
Section 3.6. If the application is not complete, SEWRPC staff will inform the
applicant of the deficiencies. A complete application, as determined by
SEWRPC staff, must be received no less than 15 days prior to a scheduled
Community Development Authority meeting in order to be available for
discussion for that CDA meeting.
After SEWRPC collects and verifies all documentation provided by the
applicant(s), and upon SEWRPC notification of receipt of the complete
application, the CDA will promptly schedule a meeting (possibly including a
closed session if needed) to evaluate the loan application.
The City of Muskego Revolving Loan Fund (RLF) program retains a finite
amount of funding at any given point in time. Muskego’s Community
Development Authority (CDA) is responsible to assure these funds are used
in such a manner as to optimize business stimulation / preservation goals
per available RLF dollar. As a result, the CDA reserves the right to modify
the criteria used to approve, amend, or deny loan applications based on the
current interests of the City of Muskego.
5.6 CDA CONSIDERATIONS
Below is a list of some of the criteria the CDA and Common Council may
consider in the review of a loan at a public meeting in open or closed
session. Further eligibility requirements are found in Section 3 of this
manual. No one particular item will unduly advance or disqualify your
application. The CDA looks at the full picture when choosing its RLF
recipients.
5.6.01 Amount of the loan request.
5.6.02 Number of jobs to be created compared to the loan amount
requested.
5.6.03 Number of jobs being made available to low-income and moderate-
income persons.
5.6.04 Eligibility of activities the loan is requested for. See Section 3.
5.6.05 Personal financial information (Note: Submission of personal
financial information may require the CDA go into closed session
to keep this information private and available only to the City and
SEWRPC. When reviewing any RLF loan application, the potential
for going into closed session will be noted on that evening's
CDA agenda so as not to postpone your application
process. Providing for the possibility of a closed session on the
agenda does not guarantee a closed session will be necessary.).
5.6.06 Application completeness.
5.6.07 If sufficient time was allowed for the Authority or Council to review
the application.
5.6.08 Necessity of requested loan.
5.6.09 Adequate loan securitization by pursuable collateral.
5.7 MUSKEGO COMMON COUNCIL REVIEW
The CDA will forward its recommendation(s) regarding each RLF loan
application to the Muskego Common Council for further review. Unless
specifically requested, only the CDA recommendation, not the full
application file, will be forwarded. The Common Council has the final
authority to approve or deny all RLF applications, and will communicate its
decision directly to SEWRPC.
If the Common Council issues loan approval, SEWRPC will follow all
applicable steps through loan closing to assure the traditional banking loans
and the RLF close as approved.
6.1.02 Loan Agreement. The City Attorney, or designee, shall prepare a loan agreement
that shall be executed by the Mayor and City Clerk, as well as the authorized
representatives of the business. A loan closing must take place within 120
days from approval of a loan by the Common Council or re-approval by the
CDA and Council is required.
7.2 DOCUMENT RETENTION
Assuming the loan closes successfully, SEWRPC must retain all
documentation pertaining to this loan, until such time as the loan is:
7.2.01 Paid off in full: In this case, after three years, SEWRPC may destroy all
loan documents EXCEPT the loan application form.
7.2.02 Forty-five days delinquent: In this circumstance, upon notification
from the City of the default, SEWRPC must forward a copy of the file,
including all application and loan closing documentation, to the CDA
for discussion and consideration, which may include steps to legally
perfect its RLF loan security claims to minimize any losses to the City
of Muskego’s Revolving Loan Fund program.
7.2.03 Delinquent loan reinstatement: The CDA must return the complete
loan file to SEWRPC, who will then retain the file based on the
requirements of 7.2.01.