CCR2005166.
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COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #166-2005
APPROVAL OF REVOLVING LOAN FUND APPLICATION
(Dr. Jodie Gruenstern, Animal Doctor, Inc.)
WHEREAS, The City of Muskego is a participant in the Revolving Loan Fund (RLF)
Plan; and
WHEREAS, Dr. Jodie Gruenstern has submitted a loan application form requesting a
loan in the amount of $100,000; and
WHEREAS, The Community Development Authority has recomme!nded approval at
their August 15, 2005 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 Dr. Jodie Gruenstern,
subject to the following conditions:
1. That a $100,000 RLF loan is provided to Dr. Gruenstern. The loan would be
used for the acquisition of real estate at Tax Key #2198.990.004 for working
capital and for RLF loan closing costs.
2. That the RLF loan is matched with a loan of at least $495,000 from Citizens
Bank of Mukwonago and $24,000 in owner's equity.
3. That the RLF loan be provided with a 10-year loan term, a 20-year amortization,
a deferral on principal payments of the first four months of the loan term, and an
interest rate of 3-1/4%. Interest only payments would be made on a monthly
basis during the deferral period.
4. That the RLF loan is secured with the collateral identified as (1) a mortgage on
the subject real estate at Tax Key #2198.990.004 that is junior to the Citizens
Bank of Mukwonago loan of $495,000, (2) the unlimited personal guaranty of Dr.
Gruenstern, and (3) a mortgage on Dr. Gruenstern's residence in the City of New
Berlin that is junior to mortgages totaling $225,000. A July 30, :2005, appraisal of
the Janesville Road property shows an estimated fair market value of $640,000.
The City of New Berlin assessment roll shows an equalized value on Dr.
Gruenstern's residence of $277,900.
5. That the city obtains a title insurancE~ policy on the property at Tax Key
#2198.990.004 in the amount of $100,000.
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Resolution #166-2005 Page 2
6. That the commitment to create five new full-time equivalent jobs in exchange for
the RLF Loan and the jobs would be recruited through the \Naukesha County
Workforce Development Center is incorporated in the loan closing documents.
7. That the borrower provides to the city, or its designee, on an annual basis, semi-
annual financial statements for Animal Doctor, Inc. that ane certified by the
company, annual financial statements for Animal Doctor that are compiled by a
certified public accountant and signed copies of the borrower's and Animal
Doctor'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 23rd DAY OF AUQust ,2005.
,SPONSORED BY:
Ald. Eric Schroeder
Ald. Nancy Salentine
This is to certify that this is a true and accurate copy of Resolution #1616-2005 which
was adopted by the Common Council of the City of uskego.
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8/2005jm
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