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CCR2017040-RLF-Schlew COMMON COUNCIL - CITY OF MUSKEGO RESOLUTION #040-2017 APPROVAL OF REVOLVING LOAN FUND APPLICATION (Schulew LLC d/b/a Legacy Landscaping LLC) (S81 W18510 Gemini Drive) WHEREAS, The City of Muskego is a participant in the Revolving Loan Fund (RLF) Plan; and WHEREAS, Schulew LLC d/b/a Legacy Landscaping LLC has submitted a loan application form requesting a loan in the amount of $125,000; and WHEREAS, The Community Development Authority has recommended approval at its April 18, 2017 meeting, subject to the conditions outlined by SEWRPC being met with one added contingency that the collateral available to secure the loan would include personal guaranties and junior mortgages on the residences of the two owners in the amount of $125,000 each. 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 Schulew LLC d/b/a Legacy Landscaping LLC subject to the following contingencies: 1. That a $125,000 RLF loan is provided to Schulew LLC. 2. That the RLF loan is matched with at least $1,274,400.00 in financing from Citizens Bank of Mukwonago and the Small Business Administration (SBA) 504 program, along with at least $16,600.00 in owners’ equity. 3. That the RLF loan is provided with a term and amortization of 10 years, a 12-month deferral on principal payments, and an interest rate of 2.0%. Interest-only payments would be made on a monthly basis during the deferred period. 4. That the RLF loan is secured with the collateral described above as well as personal guaranties and junior mortgages on the residences of the two owners in the amount of $125,000 each. 5. That the Company creates seven new full-time equivalent jobs that are recruited through the Waukesha County Workforce Development Center. At least 51% of the new jobs would be provided to low and moderate income persons. 6. That the borrowers provide 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. BE IT FURTHER RESOLVED That the Mayor and Clerk-Treasurer are authorized to sign any documents in the name of the City. Resolution #040-2017 Page 2 th DATED THIS 25 DAY OF APRIL , 2017. SPONSORED BY: COMMUNITY DEVELOPMENT AUTHORITY This is to certify that this is a true and accurate copy of Resolution #040-2017 which was adopted by the Common Council of the City of Muskego. _________________________ Clerk-Treasurer