Minutes 11/10/1998 - Laserfiche WebLink

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74 TUESDAY. NOVEMBER 10, 1998 paid by the Virginia Economic Development Partnership. He went on to note that the loan would have to be fully repaid at the end of the five year period, but that thus far in the history of the program none of the loans issued had run as long as five years, in that the buildings constructed with the funds had been sold and the loans repaid in all cases prior to their due dates. Hamed then noted that all other requirements for application had been met by the City, and read off the various requirements verbatim. Mr. Harned then noted that the loan application package would be hand-delivered to the appropriate office in Richmond on November 20, 1998. Council Member Haskell asked what it might cost in interest and fees if the application were not approved and the City had to borrow the $830,000 elsewhere. She was told that the cost over five years might be about $100,000, and that the appreciation value of the building would probably offset this amount. Council Member Roop asked if there were a payment schedule to the State Loan Program, and was told that it was a single lump sum payment option only. Mayor Crabtree asked how the building would be marketed, and was told that it would be marketed by the Patrick Henry Development Council, the Southern Virginia Economic Development Partnership, and the Virginia Economic Development Partnership. He noted that the City could expect a high level of participation in marketing from the VEDP, as it would be in their best interest to get the building sold to turn over their program loan funds. Mayor Crabtree noted that an additional $15,000 in funds had been provided to the PHDC to further the marketing efforts on their part, and asked if there had been any site visits to the Clearview Business Park yet. Mr. Harned replied that there had been, but that the site was not really fully prepared yet. Vice-Mayor Teague then noted that the partnership with VEDP was a critical element for the success of this program. City Manager Earl B. Reynolds, Jr. dosed by noting that this was the City's first effort on this type of grant, and that staff had done an exceptional job in preparing the application package, and that he felt the City's application would prove to be very competitive. Vice-Mayor Teague noted that the City had been very successful in acquiring other grant funds for the Clearview project to this point and that this effort was a job well done.