CCR2008049-RLF-Alpha
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #049-2008
APPROVAL OF REVOLVING LOAN FUND APPLICATION
(Alpha Plastics)
WHEREAS, The City of Muskego is a participant in the Revolving Loan Fund (RLF)
Plan; and
WHEREAS, Alpha Plastics has submitted a loan application form requesting a loan in
the amount of $200,000; and
WHEREAS, The Community Development Authority has recommended approval at its
February 18, 2008 meeting, subject to the conditions outlined by SEWRPC being met.
NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of
Muskego, upon the recommendation of the Community Development Authority, does
hereby approve the attached loan fund application submitted by Alpha Plastics subject
to the following conditions:
1. That a $200,000 RLF loan is provided to Alpha Plastics Solutions, Inc.
2. That the RLF loan is matched with a loan of at least $200,000 from a local
financial institution and $50,000 in owners’ equity.
3. That the RLF loan is provided with a term and amortization that matches the
Bank financing, a 12-month deferral on principal payments, and an interest rate
of 3.0 percent. Interest-only payments would be made on a monthly basis during
the deferral period.
4. That the term of the RLF loan does not exceed the term of the Company’s lease
with Apollo Drive, LLC.
5. That the RLF loan is secured with the following collateral: 1) a junior lien position
on equipment, accounts receivable, and inventory; 2) the personal guaranties of
Tim Hogan, Tammy Risseeuw, Earl Meinen, Allan Weisensel, and Scott Gillette;
and 3) an irrevocable letter of credit from a local financial institution in the
amount of $100,000 that is issued in favor of the City of Muskego.
6. That the Company creates 10 new full-time equivalent jobs that are recruited
through the Waukesha County Workforce Development Center.
7. That the borrower provides to the City, or its designee, on an annual basis,
semi-annual financial statements and signed copies of the borrower’s Federal
income tax return.
Resolution #049-2008 Page 2
BE IT FURTHER RESOLVED That the Mayor and Clerk-Treasurer are authorized to
sign any documents in the name of the City.
DATED THIS 26TH DAY OF FEBRUARY , 2008.
SPONSORED BY:
Ald. Keith Werner
Ald. Dan Pavelko
This is to certify that this is a true and accurate copy of Resolution #049-2008 which
was adopted by the Common Council of the City of Muskego.
_________________________
Clerk-Treasurer
2/08jm