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CCR2013051-RLF-Salon COMMON COUNCIL - CITY OF MUSKEGO RESOLUTION #051-2013 APPROVAL OF REVOLVING LOAN FUND APPLICATION (Haven Salon & Day Spa Corp) S76 W17789 Janesville Road / Tax Key No. 2196.970 WHEREAS, The City of Muskego is a participant in the Revolving Loan Fund (RLF) Plan; and WHEREAS, Haven Salon & Day Spa Corp has submitted a loan application form requesting a loan in the amount of $100,000; and WHEREAS, The Community Development Authority has recommended approval at its May 21, 2013 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 Haven Salon & Day Spa Corp subject to the following conditions: 1. That a $100,000 RLF loan is provided to Haven Spa & Salon, LLC and Haven Salon & Day Spa Corp. 2. That the RLF loan is matched with loans of at least $332,000 from Investors Bank and the Wisconsin Women’s Business Initiative Corporation (WWBIC). 3. That the RLF loan is matched with at least $36,000 in owner’s equity. 4. That a $50,000 Letter of Credit is carried that is directly attributed to the City of Muskego during the full life of the loan is carried and that this letter of credit is defaulted to the City of Muskego for any loss the City may incur in the event of the default of the City’s loan. 5. That the RLF loan is provided with a term and amortization of 10 years, a four-month deferral on principal payments, and an interest rate of 1.625 percent. Interest-only payments would be made on a monthly basis during the deferral period. 6. That the RLF loan is secured with the collateral described above. 7. That the Company is current on all lending conditions required by Investors Bank and WWBIC. 8. That the Company agrees to create the jobs described above. 9. That the borrowers provide to the City, or its designee, on an annual basis, semi-annual financial statements and signed copies of their Federal income tax return. Resolution #051-2013 Page 2 BE IT FURTHER RESOLVED That the Mayor and Clerk-Treasurer are authorized to sign any documents in the name of the City. TH DATED THIS 28 DAY OF MAY , 2013. SPONSORED BY: COMMUNITY DEVELOPMENT AUTHORITY Ald. Kevin Kubacki Ald. Robert Wolfe This is to certify that this is a true and accurate copy of Resolution #051-2013 which was adopted by the Common Council of the City of Muskego. _________________________ Clerk-Treasurer