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01-489council File # O\- yQ' ORlGI(�aL 2 Presented By Referred To Resolution # Green Sheet # \ �ZbZ RESOLUTION CITY OF SAINT PAUL, M(NNESOTA �� Committee: Date RESOLUTION AUTHORIZING RENEGOTIATING TERM OF THE $1 MILLION STAR LOAN TO THE MINNESOTA BUSINESS ACADEMY 4 WHEREAS, the Saint Paul City Council on November 3, 1999, byRresolution number 99-1070 approved a 5 $1,000,000 STAR loan to the Minnesota Business Academy, and 6 7 WHEREAS, the Minnesota Business Academy has succeeded in purchasing and redeveloping the former 8 Science Museum of Minnesota West $uilding into a new state-of-the-art charter school, and 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Minnesota Business Academy has encountered unexpected expenses in renovating the building, and lower than projected enrollment and revenues during their first fizll year of operations, and WHEREAS, the management of the Minnesota Business Academy appears to be on track towards achieving their goals both for student enrollment and capital campaign contribuYions; and WHEREAS, the Minnesota Business Academy requests a defenal of payments for an additional year, from April 1, 2001 unril April 1, 2002, during which time interest would accrue and be added onto the principal amount of the loan; and WHERF.AS, the Minnesota Business Academy thereafter proposes to fully amortize the $1,000,000 STAR loan and $50,000 in accrued interest over the original 15-year term of the loan and at the ariginal interest rate of five (5) percent; and WHEREAS, the PED Credit Committee has reviewed this proposal and reconmieuds this course of action; NOW THEREFORE, BE IT RESOLVED that the Saint Paul City Council approves restructuring the STAR loan to the Minnesota Business Academy to defer payments for an additional year, to accrue the interest, and to amortize the original principal and accrued interest over the original term of the loan. o, y�� oR��va� Adopted by Council: Date _�� l Adoption Certified by Council Sec e ary g � \�. �-.��A., _ Approved by Mayor: Date �� r� !�6"/ BY: Requested by Department of: Plannin & Economic Develo me By: Approved by Fina�nk.�Ct��ice�� / �r C By: Fosm Approved by j t�,Attorne� f � , � � �: f - r gy , v f Approved by Mayor for mission to Council By: i DEPARI'A4.NT/OFFICE/COUNCII.: DATE INITIATED GREEN SHEET NO.:IlI2H2 • PED Apri124, 2001 O t-�PQ CONTACT PERSON & PHONE: r � �n mTi�fAi,mATE Craig Blakely �/ i nsrnRTn�r Dut --T--- 3 cz�cour�cn, MUST BE ON COUNCIL AGENDA BY (DATE) �IGN ? CTTY ATTORNEY 1t X�S / = CITY CLERK NUM17gEg 4 FINANCIAL SERV DIR. I- FINANCIAL SERV/ACCTG May 9�` - Consent Agenda ppg 5 MAYOR (OR ASST.) � _ CIVIL SERVICE COMM[SSION ROUTING , , ORDETL TOTAL # OF SIGNA'NRE PAGES _(CLIP ALL LOCATIONS FOR SIGNA'I'i7RE) ncriox xEQUES�n: Resolution granting City Council approval for restructuring the STAR loan to the Minnesota , Business Academy to defer payments for a yeaz, accrue the interest, and amortize the loan on the original schedule. RECOMME:NDATfONS: Approve (A) or Reject (R) PERSONAI. SERVICE CO1V1'RAGT3 MUST ANSWER THE FOLLOR'ING . QUESTIONS: PLANNiNG COMB�IISSION I Has this person/firm ever worked under a contract for Nis deparnnent? CIB COMMITTEE Yes No CIV[L SERVICE COMMISSION 2. Has this person/firm ever been a city employee? Yes No 3. Does ffiis person/fimi passess a sidll not normaily possessed by any cucrzat city employee? Yes No � Explain alt yes answers on separate sheet aud anach to green sheet INITIATING PROBLEM, ISSUE, OPPORTONITY (W6o, Whay When, Where, Why): The City Council on November 3, 1999, by Resolution 99-1070, approved a$1 million STAR loan to the Minnesota Business Academy. Because expenses where higher, and revenues lower, than anticipated, they have asked to defer payments for an additional year, accrue the interest, and amortize the originalloan and accrued interest on the same schedule as before. ADVANTAGESIFAPPROVED: The Minnesota Business Academy will be better able to repay the loan. DISADVANTAGES IF APPROVED: None. ��A�� OF � DISADVANTAGESIFNOTAPPROVED: ApR �� Zd�� The startup school will be placed under significant financial stress. �� '�� Y , TOTAL AMOUNT OF TRANSACTION: $0 COST/REVEN[JE BUDGETED: , , F'[JNDING SOURCE: aav6eo 1i.7 �L.,�v1rCh (,°B�iEf ACl'IVTI'Y NUMBER: FINANCIAL INFORMATION: (EXPLAIN) � � .&,�� ry(ipt Lvt� Q ar h , tor M �vs��s�.,vc�.v�con�.rssrnav�.mA cr�, waa ..�..j�., ,. .. .:t:+1. council File # O\- yQ' ORlGI(�aL 2 Presented By Referred To Resolution # Green Sheet # \ �ZbZ RESOLUTION CITY OF SAINT PAUL, M(NNESOTA �� Committee: Date RESOLUTION AUTHORIZING RENEGOTIATING TERM OF THE $1 MILLION STAR LOAN TO THE MINNESOTA BUSINESS ACADEMY 4 WHEREAS, the Saint Paul City Council on November 3, 1999, byRresolution number 99-1070 approved a 5 $1,000,000 STAR loan to the Minnesota Business Academy, and 6 7 WHEREAS, the Minnesota Business Academy has succeeded in purchasing and redeveloping the former 8 Science Museum of Minnesota West $uilding into a new state-of-the-art charter school, and 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Minnesota Business Academy has encountered unexpected expenses in renovating the building, and lower than projected enrollment and revenues during their first fizll year of operations, and WHEREAS, the management of the Minnesota Business Academy appears to be on track towards achieving their goals both for student enrollment and capital campaign contribuYions; and WHEREAS, the Minnesota Business Academy requests a defenal of payments for an additional year, from April 1, 2001 unril April 1, 2002, during which time interest would accrue and be added onto the principal amount of the loan; and WHERF.AS, the Minnesota Business Academy thereafter proposes to fully amortize the $1,000,000 STAR loan and $50,000 in accrued interest over the original 15-year term of the loan and at the ariginal interest rate of five (5) percent; and WHEREAS, the PED Credit Committee has reviewed this proposal and reconmieuds this course of action; NOW THEREFORE, BE IT RESOLVED that the Saint Paul City Council approves restructuring the STAR loan to the Minnesota Business Academy to defer payments for an additional year, to accrue the interest, and to amortize the original principal and accrued interest over the original term of the loan. o, y�� oR��va� Adopted by Council: Date _�� l Adoption Certified by Council Sec e ary g � \�. �-.��A., _ Approved by Mayor: Date �� r� !�6"/ BY: Requested by Department of: Plannin & Economic Develo me By: Approved by Fina�nk.�Ct��ice�� / �r C By: Fosm Approved by j t�,Attorne� f � , � � �: f - r gy , v f Approved by Mayor for mission to Council By: i DEPARI'A4.NT/OFFICE/COUNCII.: DATE INITIATED GREEN SHEET NO.:IlI2H2 • PED Apri124, 2001 O t-�PQ CONTACT PERSON & PHONE: r � �n mTi�fAi,mATE Craig Blakely �/ i nsrnRTn�r Dut --T--- 3 cz�cour�cn, MUST BE ON COUNCIL AGENDA BY (DATE) �IGN ? CTTY ATTORNEY 1t X�S / = CITY CLERK NUM17gEg 4 FINANCIAL SERV DIR. I- FINANCIAL SERV/ACCTG May 9�` - Consent Agenda ppg 5 MAYOR (OR ASST.) � _ CIVIL SERVICE COMM[SSION ROUTING , , ORDETL TOTAL # OF SIGNA'NRE PAGES _(CLIP ALL LOCATIONS FOR SIGNA'I'i7RE) ncriox xEQUES�n: Resolution granting City Council approval for restructuring the STAR loan to the Minnesota , Business Academy to defer payments for a yeaz, accrue the interest, and amortize the loan on the original schedule. RECOMME:NDATfONS: Approve (A) or Reject (R) PERSONAI. SERVICE CO1V1'RAGT3 MUST ANSWER THE FOLLOR'ING . QUESTIONS: PLANNiNG COMB�IISSION I Has this person/firm ever worked under a contract for Nis deparnnent? CIB COMMITTEE Yes No CIV[L SERVICE COMMISSION 2. Has this person/firm ever been a city employee? Yes No 3. Does ffiis person/fimi passess a sidll not normaily possessed by any cucrzat city employee? Yes No � Explain alt yes answers on separate sheet aud anach to green sheet INITIATING PROBLEM, ISSUE, OPPORTONITY (W6o, Whay When, Where, Why): The City Council on November 3, 1999, by Resolution 99-1070, approved a$1 million STAR loan to the Minnesota Business Academy. Because expenses where higher, and revenues lower, than anticipated, they have asked to defer payments for an additional year, accrue the interest, and amortize the originalloan and accrued interest on the same schedule as before. ADVANTAGESIFAPPROVED: The Minnesota Business Academy will be better able to repay the loan. DISADVANTAGES IF APPROVED: None. ��A�� OF � DISADVANTAGESIFNOTAPPROVED: ApR �� Zd�� The startup school will be placed under significant financial stress. �� '�� Y , TOTAL AMOUNT OF TRANSACTION: $0 COST/REVEN[JE BUDGETED: , , F'[JNDING SOURCE: aav6eo 1i.7 �L.,�v1rCh (,°B�iEf ACl'IVTI'Y NUMBER: FINANCIAL INFORMATION: (EXPLAIN) � � .&,�� ry(ipt Lvt� Q ar h , tor M �vs��s�.,vc�.v�con�.rssrnav�.mA cr�, waa ..�..j�., ,. .. .:t:+1. council File # O\- yQ' ORlGI(�aL 2 Presented By Referred To Resolution # Green Sheet # \ �ZbZ RESOLUTION CITY OF SAINT PAUL, M(NNESOTA �� Committee: Date RESOLUTION AUTHORIZING RENEGOTIATING TERM OF THE $1 MILLION STAR LOAN TO THE MINNESOTA BUSINESS ACADEMY 4 WHEREAS, the Saint Paul City Council on November 3, 1999, byRresolution number 99-1070 approved a 5 $1,000,000 STAR loan to the Minnesota Business Academy, and 6 7 WHEREAS, the Minnesota Business Academy has succeeded in purchasing and redeveloping the former 8 Science Museum of Minnesota West $uilding into a new state-of-the-art charter school, and 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Minnesota Business Academy has encountered unexpected expenses in renovating the building, and lower than projected enrollment and revenues during their first fizll year of operations, and WHEREAS, the management of the Minnesota Business Academy appears to be on track towards achieving their goals both for student enrollment and capital campaign contribuYions; and WHEREAS, the Minnesota Business Academy requests a defenal of payments for an additional year, from April 1, 2001 unril April 1, 2002, during which time interest would accrue and be added onto the principal amount of the loan; and WHERF.AS, the Minnesota Business Academy thereafter proposes to fully amortize the $1,000,000 STAR loan and $50,000 in accrued interest over the original 15-year term of the loan and at the ariginal interest rate of five (5) percent; and WHEREAS, the PED Credit Committee has reviewed this proposal and reconmieuds this course of action; NOW THEREFORE, BE IT RESOLVED that the Saint Paul City Council approves restructuring the STAR loan to the Minnesota Business Academy to defer payments for an additional year, to accrue the interest, and to amortize the original principal and accrued interest over the original term of the loan. o, y�� oR��va� Adopted by Council: Date _�� l Adoption Certified by Council Sec e ary g � \�. �-.��A., _ Approved by Mayor: Date �� r� !�6"/ BY: Requested by Department of: Plannin & Economic Develo me By: Approved by Fina�nk.�Ct��ice�� / �r C By: Fosm Approved by j t�,Attorne� f � , � � �: f - r gy , v f Approved by Mayor for mission to Council By: i DEPARI'A4.NT/OFFICE/COUNCII.: DATE INITIATED GREEN SHEET NO.:IlI2H2 • PED Apri124, 2001 O t-�PQ CONTACT PERSON & PHONE: r � �n mTi�fAi,mATE Craig Blakely �/ i nsrnRTn�r Dut --T--- 3 cz�cour�cn, MUST BE ON COUNCIL AGENDA BY (DATE) �IGN ? CTTY ATTORNEY 1t X�S / = CITY CLERK NUM17gEg 4 FINANCIAL SERV DIR. I- FINANCIAL SERV/ACCTG May 9�` - Consent Agenda ppg 5 MAYOR (OR ASST.) � _ CIVIL SERVICE COMM[SSION ROUTING , , ORDETL TOTAL # OF SIGNA'NRE PAGES _(CLIP ALL LOCATIONS FOR SIGNA'I'i7RE) ncriox xEQUES�n: Resolution granting City Council approval for restructuring the STAR loan to the Minnesota , Business Academy to defer payments for a yeaz, accrue the interest, and amortize the loan on the original schedule. RECOMME:NDATfONS: Approve (A) or Reject (R) PERSONAI. SERVICE CO1V1'RAGT3 MUST ANSWER THE FOLLOR'ING . QUESTIONS: PLANNiNG COMB�IISSION I Has this person/firm ever worked under a contract for Nis deparnnent? CIB COMMITTEE Yes No CIV[L SERVICE COMMISSION 2. Has this person/firm ever been a city employee? Yes No 3. Does ffiis person/fimi passess a sidll not normaily possessed by any cucrzat city employee? Yes No � Explain alt yes answers on separate sheet aud anach to green sheet INITIATING PROBLEM, ISSUE, OPPORTONITY (W6o, Whay When, Where, Why): The City Council on November 3, 1999, by Resolution 99-1070, approved a$1 million STAR loan to the Minnesota Business Academy. Because expenses where higher, and revenues lower, than anticipated, they have asked to defer payments for an additional year, accrue the interest, and amortize the originalloan and accrued interest on the same schedule as before. ADVANTAGESIFAPPROVED: The Minnesota Business Academy will be better able to repay the loan. DISADVANTAGES IF APPROVED: None. ��A�� OF � DISADVANTAGESIFNOTAPPROVED: ApR �� Zd�� The startup school will be placed under significant financial stress. �� '�� Y , TOTAL AMOUNT OF TRANSACTION: $0 COST/REVEN[JE BUDGETED: , , F'[JNDING SOURCE: aav6eo 1i.7 �L.,�v1rCh (,°B�iEf ACl'IVTI'Y NUMBER: FINANCIAL INFORMATION: (EXPLAIN) � � .&,�� ry(ipt Lvt� Q ar h , tor M �vs��s�.,vc�.v�con�.rssrnav�.mA cr�, waa ..�..j�., ,. .. .:t:+1.