Agenda Date: 3/17/15
Subject:
Title
Motion authorizing an advance of $50,000 to Littleton Invests for Tomorrow ("LIFT") in accordance with the Cooperation and Loan Agreement between the City and LIFT, dated December 16, 2014
Body
Presented By: |
Jim Rees, Executive Director of LIFT |
POLICY QUESTION:
Does city council support a second draw in the amount of $50,000 as per the terms and conditions described in Section 3.0 of the Cooperation and Loan Agreement between the City and LIFT?
BACKGROUND:
On December 16, 2014, the City and LIFT entered into a Cooperation and Loan Agreement, which established a loan of $200,000 to LIFT. The Agreement provides funds that will enable LIFT to implement the urban renewal plans and eliminate and prevent conditions of blight found in the plan areas. An initial draw on the funds was made on December 16, 2014 in the amount of $50,000.
LIFT has provided a statement of its expenditures up to February 28, 2015 as well as the check register.
In accordance with the Loan Agreement, LIFT agrees to repay the loan amount with interest at a rate equal to the current 2-year treasury rate, but no less than .51% per annum.
STAFF ANALYSIS:
The documentation provided by LIFT satisfies the reporting requirements and show that the original $50,000 draw has been drawn down and additional funds are required to fund LIFT's operating expenses associated with the implementation of the four approved urban renewal plans.
FISCAL IMPACTS:
The loan balance will be $100,000 and is within the $200,000 that was allocated by City Council to fund the expenses. The loan will accrue interest at the 2-year treasury rate.
STAFF RECOMMENDATION:
Staff recommends council approve this request for a second draw of $50,000.
PROPOSED MOTION:
Proposed Motion
I move to approve the motion authorizing a second draw of $50,000 to LIFT in accordance with the December 16, 2014 Cooperation and Loan Agreement between the City of Littleton and LIFT.