CCR2003260-- December 9,2003
Re: Resolution #260-2003 - Approval of Revolving Loan Fund Application -
Gorski, Inc. d/b/a Li'l Angels Day Care
John Meland of SEWRPC called today to advise that Terri Gorski called him
today to withdraw her request for the RLF loan at this time. She asked that this
item be removed from the Council agenda tonight. A revised application may be
submitted in the future for a different location.
Jean K. Marenda
Clerk-Treasurer
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Removed - 12/09/2003
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #260-2003
APPROVAL OF REVOLVING LOAN FUND APPLICATION
(Gorski, Inc. d/b/a Li'l Angels Day Care)
WHEREAS, The City of Muskego is a participant in the Revolving Loan Fund (RLF)
Plan; and
WHEREAS, Gorski, Inc. has submitted a loan application form requesting a loan in the
amount of $46,700; and
WHEREAS, The Community Development Authority has recommended approval
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 Gorski, Inc, subject to
the following conditions:
1. That a $46,700 RLF loan is provided to Gorski, Inc. The loan would be used to
finance the acquisition of the day care facility at S84 W 18473 Enterprise Drive,
as well as to finance closing costs for both the City loan and the commercial
financing.
2. That Gorski, Inc. secures financing from a commercial financial institution in the
amount of at least $440,000 for the acquisition of the day care facility. The
commercial financing would include a 75 percent loan guaranty through the U.S.
Small Business Administration (SBA). The loan would have a term and
amortization of 20 years with an adjustable interest rate of prime plus 2 percent.
3. That Gorski, Inc. provides at least $50,000 in equity capital towards the purchase
of the day care facility.
4. That the RLF loan is provided with a term and amortization of 10 years and an
interest rate of 4 percent. Repayment would begin on the first day of the second
month following disbursement of the loan proceeds.
5. That the RLF loan is secured with the following collateral: 1) a mortgage and
assignment of rents and leases on the property at S84 W 18473 Enterprise Drive,
Muskego, that is junior only to the participating commercial lender and the SBA;
2) a security lien on the business assets of Gorski, Inc. that is junior only to the
commercial lender and the SBA; and 3) the unlimited personal guarantee of
Therese and Duane Gorski.
6. That the City obtains a current title insurance commitment for the real estate to
be acquired.
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Resolution #260-2003 Page 2
7. That Gorski, Inc. creates at least 2.5 new jobs within 24 months of the closing on
the RLF loan and that 51 percent of the new jobs be made available through the
Waukesha County Workforce Development Center.
8. That Gorski, Inc. provides to the City, or its designee, on an annual basis. semi-
annual financial statements that are certified by the Borrower, annual financial
statements that are compiled by a certified public accountant and a signed copy
of the Company's federal income tax return.
BE IT FURTHER RESOLVED That the Mayor and Clerk-Treasurer are authorized to
sign any documents in the name of the City.
DATED THIS DAY OF ,2003.
SPONSORED BY:
Ald. Rick Petfalski
Ald. Nancy Salentine
This is to certify that this is a true and accurate copy of Resolution #260-2003 which
was adopted by the Common Council of the City of Muskego.
Clerk-Treasurer
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