Sponsor
Alderman Spangenberg
Title
Agreement for City of Racine Industrial/Commercial Building - Revolving Loan Fund
Resolved, by the Common Council of the City of Racine, that the Mayor and City Clerk are authorized and directed to enter into an agreement or agreements for the re-capitalization of the City of Racine Industrial/Commercial Building - Revolving Loan Fund consistent with the terms and conditions set forth in the December 11, 2006 memorandum from the Racine County Economic Development Corporation to the Common Council. (06-2873)
Further resolved, that the City consents to the assignment of the existing loan portfolio and loan fund as collateral for a line of credit for the recapitalized fund.
Further resolved, that the City consents to the subordination of its position on the loans in the portfolio to the lender or lenders in the recapitalized fund.
Fiscal Note: The existing fund has used almost all of its capital for loans to Racine companies. The recapitalization will allow continuation of the program by providing a $1.0 million line of credit at below prime interest rates for loans to Racine companies.