Laserfiche WebLink
CITY COUNCIL AGENDA ITEM BRIEFING SHEET <br />Submittal Date: <br />Originating Department: <br />Ptesented By: <br />Agenda Item No.: <br />1-18-12 <br />Council Date: <br />City Manager <br />Gene Anderson <br />17. <br />1-23-12 <br />RECOMMENDED MOTION: <br />Approve a resolution authorizing the execution of a subordination of lien to Lamar National Bank regarding an <br />additional loan to Kenneth White, d/b/a White's Flooring. <br />POLICY ISSUE(S): <br />Fiscal Management <br />The City of Paris received a Rural Business Enterprise Grant in 2008. Part of this grant was awarded in <br />the form of a low interest loan to Kenneth White that was executed in conjunction with a loan to Mr. <br />White made by Lamar National Bank. The loans were for $60,000 each. These loans were for the <br />purchase of a building and expansion of Mr. White's business. Under this program, the City's loan held <br />a second lien position to the Lamar Bank loan. Mr. White has been making timely payment on both <br />loans. The current balances of the two loans are approximately $51,000 and $49,000 respectively. <br />Having analyzed Mr. White's financial position, Lamar Bank is proposing to loan Mr. White and <br />additional $30,000 for his business. As the second lien holder, the City must agree to the loan and agree <br />to accept second lien position to the additional loan amount. Given the purpose of the grant program <br />was to support small businesses, the staff recommends passage of this resolution. The City will not be <br />increasing its loan and payments will continue to be made on the City loan on the original payment <br />schedule. The City loan is a 15 year note with final payment to be made in 2023. <br />BOARD/COMMISSION RECOMMENDATION: <br />None <br />EXHIBITS: <br />Resolution; Subordination Agreement <br />ACTION: <br />BUDGET INFO: <br />❑ Financial Report ❑ Minute Order <br />Expense <br />$NA <br />❑ Department Report Z Resolution <br />Budgeted Amt. <br />$NA <br />❑ Presentation ❑ Ordinance <br />y'I'D Actual <br />$NA <br />❑ Public Hearing ❑ Other <br />Acct. Name <br />NA <br />Acct. Number <br />NA <br />FISCAL NOTES: <br />None <br />REVIEWED AND APPROVED BY: <br />Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire <br />❑ Municipal Court Z Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities <br />City of Paris 1 4C3 p Revised 2/04/08 <br />~ <br />