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98-1132Council File # 19�«.3a` Resolution # Green Sheet # `a� Presented By Referred To � ✓ MINNESOTA � �. Committee: Date 1 RESOLUTION APPROVING AND AUTHORIZING THE ISSUANCE OF A LOAN TO, 2 NIIRATEC SYSTEMS, INC. THROUGH THE STAR YEAR-ROUND LOAN 3 PROGRAM, DISTRICT 4, WARD 2 4 6 WHEREAS, Miratec Systems, Inc. has requested a$197,500 loan through the STAR Yeaz- 7 round Loan Program for building improvements; and 8 9 WHEREAS, the project consists of $395,000 of leasehold improvements to their building 10 located in Williams Hill Industrial Park. The company will provide $197,500 in matching funds ll for the project. The company was founded in 1987 and produces architectural and environmental 12 graphic components serving the sign, screenprint and display industry. The company currently 13 employs 35 people and will continue to grow in it's new location; and 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 WHEREAS, the proposed terms for the loan include a deferral of monthly payments of interest and principal for the first year and then monthly payments of principal and interest over the remaining ten yeazs. Loan repayment will be derived from cash flow from the business; the loan will be evidenced by a full recourse Promissory Note from Miratec Systems. Collateral will consist of a subordinate security interest in all assets of the borrower, including real estate and leases;and WFIEREAS, the borrower will comply with a11 federal, state and local laws and policies but not limited to prevailing wage standards for construction (Davis-Bacon), affirmative action/equal opportunity and targeted business programs; and WHEREAS, the prunary public purpose of the project is to support the vitalaty of industry, retain local business, support commercial activity and increase the tax base; and WfiEREAS, the loan has been reviewed and recommended for approval by the PED Credit Committee and the STAR Boazd which have assigned a credit risk rating of Acceptable to the loan request. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Saint Paul, that approval is hereby granted for a loan in the amount of $197,500 from the STAR Year-round Loan Fund for building vnprovements and renovations, under the terms described herein, and with such additional terms and conditions as the Executive Director of the Housing and Kedevelopment Authority of the City of Saint Paul, Minnesota deems necessary and appropriate. °lg � 1 �3 a 1 BE IT FURTHER RESOLVED, the Bxecutive Director of the Housing and Redevelopment 2 Authority of the City of Saint Paul, Minnesota and other appropriate City officials are authorized 3 to execute the necessaty documents in connection with the loan and grant, in form acceptable to 4 the City Attorney, on behalf of the City. Requested by Department of: Plannina & Economic Develonment � By �, �� Form Approved by City Attorney Approved By By: ��'�� � UI.t �tl ��� �— y 11.;•� d�� b y �v�ca� . — /6 — fo � TOTAL # OF SIGNATURE PAGES p � 1 % �+ �q8' GREEN SHEET No 614i6 ���� �� ��„� � ta �� gQ �,.� — ❑..�,,,��,. ❑,.�,.�,�.�� �.,��,,,�. ❑ (CL1P ALL LO TIONS FOR SIGNATURE) /°� o�.c.s.,. rn;.- e�, c S�e. r►� s.�"y� c., S T�} �P � c�. ti Y'c. � tti�4S t 6 r� th.r` C: �y CQ a. +, e.: t���s �, Aa�. , �dh3� PLANNING CAMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION FIffithi6 Pe��� C.RI WOfKEd UI1dEf 8 fAf1U0CSSOf 11118 (�3f1111M1� YES NO Fias Mis Pe��rm e�xr been a dtY emWoYee7 YES NO Does fhis peisoNfirm poscess a sldll nd nwmallypossessetl by arry cunent city empbyee? YES NO is Mis person/fmi a fargeted vendOfT � YES NO S T$ l2 L o c. h y-..e. 2 v� .c s f �Q .- G���r C e H h c,'� �OVANTAGESIFAPPROVED 6'�¢' �,�,�ry , 4 {�.�...s,� L d0� 1� A�� �-O t..L � ;��z��� ��:� ..� w e �4 �'r � �--- dOUM OF TRANSAC710N S_ I ���L] V[J SOURCE ��� / �Q � 1 /CQ I/L N � MFORMATION (EXPLAIN� CASTrttEVR1UE BUDGETED (CIRCLH ON� ACTNITY NUMBER YES NO �i0l1Pi^.,�3� �a s's?1$`e`s �r� � � ���� �t�-ti�3�- Interdepartmental Memorandum CPPY OF SAII3T PAUL TO: Credit Committee FROM: David J. Gontarek RE: Miratec Systems, Inc. Date: December 7,1998 REPORT SYNOPSIS1PtJRPOSE Miratec Systems is a wholesale manufacturer of architectural and environmental graphic components serving the sign, screenprint and display industry. The company was formed 10 years ago and has grown from 4 to 35 employees. They currently have markets nationwide. The management consists of a national sales manager, operations manager and president and vice president. The company is currently located at 666 Transfer Road in St. Paul. They are in process of building a new manufacturing facility at Williams Hill. This location should serve their space needs for the next twenty yeazs. The company will be leasing the new facility from a holding company (LLC) made up of the president and vice president of the company. They aze requesting $197,500 in Yhe form of a Star loan to help pay for the tenant improvements which will total $395,000. The new building is a 46,000 square foot manufacturing buiiding. It is the second building to be built in the new VJilliams Hili Industrial Park. The building will be owned by the Guinee Family LLC. The building shell is being fmanced by a tax exempt industrial revenue bond issued by the Port Authority of 5t. Paul. The total project cost is $2,700,000 ($1.7 tas exempt and .6 taxable). The LLC has injected $400,000 equity into the buitding bring the total to $3,100,OQ0. U.S. Bank has provided a LOC for the project bonds. The Star loan is needed because of the large equity injection on the bond side of the fmancing. The total project when compieted will be $3,500,000. This is a significant investment in one of our high priority redevelopment areas of St. Paul. ��. Sources and Uses of Funds: Use of Funds Relocaflon 40,000 New Const. 320,000 Soft Costs 35,000 Source of Funds StarLoan $197,500 Equity $197,500 The purpose of this report is to risk rate the application for the Staz Board. Miratec is a strong growing company with a bright future. The risk rating is recommended to be acceptable. BUSINESS PROFILE The company manufactures architectural and environmental graphic components. The company has been in business for over ten years and has grown greatly from the original start phase. Their projecfions show continued growth in sales and efficiency due to their expansion at Williams Hill. The management consists of Bert Guinee as President and Cazol Guinee as vice-president. Both have very good experience in their field. LOAN PROFILE The sales haue been increasing and are currently at $3,349,089 in 97. The company is on pace to exceed their projections for 98. 'I`heir debdnet worth ratio is at .95:1, current ratio at 1.17:1. The company will continue to lease the facility from the LLC. Their receivable and payables aze a11 of high quality and cash flow is suff'icient for the companies working capital needs. The request for Star funding is $197,500 at 4% interest for 10 years. The recommended rate is 6.5% for 10 years. The company can afford the non-subsidized rate and the Star loan will help the company with it's cash flow needs. °Ik" 1��� SOURCES OF BORROWER INFORMATION Financial information was provided by the loan applicant and the accounting firm of D.B (Tom) Stewart, III, CPA, EA. REPAYMEN'1' CAPACITY Repayment is based on the Miratec company (tenant) to pay the lease to the LLC. The company shows strong fmancial ability to do this. Further rent income will be available to the LLC through other leases. The facility will have an addiriona122,000 square feet to lease which will further strengthen the repayment ability.. The debt on the industrial revenue bond is $125,000 and the Star loan $17,670. The company has existing cash flow for debt payment of $325,000. As the remainder of the building is leased to other users additional cash flow will be available for debt service. LOAN AGREEMENTS At closing the Borrower will execute a loan agreement, note, personal gty, mortgage, assignment of leases and rents and UCC on assets of the company. INSURANCE All insurance requirements aze outlined in the existing lease of the facility. SECURITY AND COLLATERAL The security of the loan wili be a note, loan agreement,UCC ,personal gty and mortgage on the new manufacturing facility. PORTFOLIO MONITORING This is a Staz loan request and the monitoring will be through the Star Program. I�1 : 11Ti1: ►i� I�Y The public benefit listed by the borrower are to: support vitality of Indushy and stabilize mazket value. The company also employs 36 full tune employees and will add 7 a year for the next five years. Council File # 19�«.3a` Resolution # Green Sheet # `a� Presented By Referred To � ✓ MINNESOTA � �. Committee: Date 1 RESOLUTION APPROVING AND AUTHORIZING THE ISSUANCE OF A LOAN TO, 2 NIIRATEC SYSTEMS, INC. THROUGH THE STAR YEAR-ROUND LOAN 3 PROGRAM, DISTRICT 4, WARD 2 4 6 WHEREAS, Miratec Systems, Inc. has requested a$197,500 loan through the STAR Yeaz- 7 round Loan Program for building improvements; and 8 9 WHEREAS, the project consists of $395,000 of leasehold improvements to their building 10 located in Williams Hill Industrial Park. The company will provide $197,500 in matching funds ll for the project. The company was founded in 1987 and produces architectural and environmental 12 graphic components serving the sign, screenprint and display industry. The company currently 13 employs 35 people and will continue to grow in it's new location; and 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 WHEREAS, the proposed terms for the loan include a deferral of monthly payments of interest and principal for the first year and then monthly payments of principal and interest over the remaining ten yeazs. Loan repayment will be derived from cash flow from the business; the loan will be evidenced by a full recourse Promissory Note from Miratec Systems. Collateral will consist of a subordinate security interest in all assets of the borrower, including real estate and leases;and WFIEREAS, the borrower will comply with a11 federal, state and local laws and policies but not limited to prevailing wage standards for construction (Davis-Bacon), affirmative action/equal opportunity and targeted business programs; and WHEREAS, the prunary public purpose of the project is to support the vitalaty of industry, retain local business, support commercial activity and increase the tax base; and WfiEREAS, the loan has been reviewed and recommended for approval by the PED Credit Committee and the STAR Boazd which have assigned a credit risk rating of Acceptable to the loan request. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Saint Paul, that approval is hereby granted for a loan in the amount of $197,500 from the STAR Year-round Loan Fund for building vnprovements and renovations, under the terms described herein, and with such additional terms and conditions as the Executive Director of the Housing and Kedevelopment Authority of the City of Saint Paul, Minnesota deems necessary and appropriate. °lg � 1 �3 a 1 BE IT FURTHER RESOLVED, the Bxecutive Director of the Housing and Redevelopment 2 Authority of the City of Saint Paul, Minnesota and other appropriate City officials are authorized 3 to execute the necessaty documents in connection with the loan and grant, in form acceptable to 4 the City Attorney, on behalf of the City. Requested by Department of: Plannina & Economic Develonment � By �, �� Form Approved by City Attorney Approved By By: ��'�� � UI.t �tl ��� �— y 11.;•� d�� b y �v�ca� . — /6 — fo � TOTAL # OF SIGNATURE PAGES p � 1 % �+ �q8' GREEN SHEET No 614i6 ���� �� ��„� � ta �� gQ �,.� — ❑..�,,,��,. ❑,.�,.�,�.�� �.,��,,,�. ❑ (CL1P ALL LO TIONS FOR SIGNATURE) /°� o�.c.s.,. rn;.- e�, c S�e. r►� s.�"y� c., S T�} �P � c�. ti Y'c. � tti�4S t 6 r� th.r` C: �y CQ a. +, e.: t���s �, Aa�. , �dh3� PLANNING CAMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION FIffithi6 Pe��� C.RI WOfKEd UI1dEf 8 fAf1U0CSSOf 11118 (�3f1111M1� YES NO Fias Mis Pe��rm e�xr been a dtY emWoYee7 YES NO Does fhis peisoNfirm poscess a sldll nd nwmallypossessetl by arry cunent city empbyee? YES NO is Mis person/fmi a fargeted vendOfT � YES NO S T$ l2 L o c. h y-..e. 2 v� .c s f �Q .- G���r C e H h c,'� �OVANTAGESIFAPPROVED 6'�¢' �,�,�ry , 4 {�.�...s,� L d0� 1� A�� �-O t..L � ;��z��� ��:� ..� w e �4 �'r � �--- dOUM OF TRANSAC710N S_ I ���L] V[J SOURCE ��� / �Q � 1 /CQ I/L N � MFORMATION (EXPLAIN� CASTrttEVR1UE BUDGETED (CIRCLH ON� ACTNITY NUMBER YES NO �i0l1Pi^.,�3� �a s's?1$`e`s �r� � � ���� �t�-ti�3�- Interdepartmental Memorandum CPPY OF SAII3T PAUL TO: Credit Committee FROM: David J. Gontarek RE: Miratec Systems, Inc. Date: December 7,1998 REPORT SYNOPSIS1PtJRPOSE Miratec Systems is a wholesale manufacturer of architectural and environmental graphic components serving the sign, screenprint and display industry. The company was formed 10 years ago and has grown from 4 to 35 employees. They currently have markets nationwide. The management consists of a national sales manager, operations manager and president and vice president. The company is currently located at 666 Transfer Road in St. Paul. They are in process of building a new manufacturing facility at Williams Hill. This location should serve their space needs for the next twenty yeazs. The company will be leasing the new facility from a holding company (LLC) made up of the president and vice president of the company. They aze requesting $197,500 in Yhe form of a Star loan to help pay for the tenant improvements which will total $395,000. The new building is a 46,000 square foot manufacturing buiiding. It is the second building to be built in the new VJilliams Hili Industrial Park. The building will be owned by the Guinee Family LLC. The building shell is being fmanced by a tax exempt industrial revenue bond issued by the Port Authority of 5t. Paul. The total project cost is $2,700,000 ($1.7 tas exempt and .6 taxable). The LLC has injected $400,000 equity into the buitding bring the total to $3,100,OQ0. U.S. Bank has provided a LOC for the project bonds. The Star loan is needed because of the large equity injection on the bond side of the fmancing. The total project when compieted will be $3,500,000. This is a significant investment in one of our high priority redevelopment areas of St. Paul. ��. Sources and Uses of Funds: Use of Funds Relocaflon 40,000 New Const. 320,000 Soft Costs 35,000 Source of Funds StarLoan $197,500 Equity $197,500 The purpose of this report is to risk rate the application for the Staz Board. Miratec is a strong growing company with a bright future. The risk rating is recommended to be acceptable. BUSINESS PROFILE The company manufactures architectural and environmental graphic components. The company has been in business for over ten years and has grown greatly from the original start phase. Their projecfions show continued growth in sales and efficiency due to their expansion at Williams Hill. The management consists of Bert Guinee as President and Cazol Guinee as vice-president. Both have very good experience in their field. LOAN PROFILE The sales haue been increasing and are currently at $3,349,089 in 97. The company is on pace to exceed their projections for 98. 'I`heir debdnet worth ratio is at .95:1, current ratio at 1.17:1. The company will continue to lease the facility from the LLC. Their receivable and payables aze a11 of high quality and cash flow is suff'icient for the companies working capital needs. The request for Star funding is $197,500 at 4% interest for 10 years. The recommended rate is 6.5% for 10 years. The company can afford the non-subsidized rate and the Star loan will help the company with it's cash flow needs. °Ik" 1��� SOURCES OF BORROWER INFORMATION Financial information was provided by the loan applicant and the accounting firm of D.B (Tom) Stewart, III, CPA, EA. REPAYMEN'1' CAPACITY Repayment is based on the Miratec company (tenant) to pay the lease to the LLC. The company shows strong fmancial ability to do this. Further rent income will be available to the LLC through other leases. The facility will have an addiriona122,000 square feet to lease which will further strengthen the repayment ability.. The debt on the industrial revenue bond is $125,000 and the Star loan $17,670. The company has existing cash flow for debt payment of $325,000. As the remainder of the building is leased to other users additional cash flow will be available for debt service. LOAN AGREEMENTS At closing the Borrower will execute a loan agreement, note, personal gty, mortgage, assignment of leases and rents and UCC on assets of the company. INSURANCE All insurance requirements aze outlined in the existing lease of the facility. SECURITY AND COLLATERAL The security of the loan wili be a note, loan agreement,UCC ,personal gty and mortgage on the new manufacturing facility. PORTFOLIO MONITORING This is a Staz loan request and the monitoring will be through the Star Program. I�1 : 11Ti1: ►i� I�Y The public benefit listed by the borrower are to: support vitality of Indushy and stabilize mazket value. The company also employs 36 full tune employees and will add 7 a year for the next five years. Council File # 19�«.3a` Resolution # Green Sheet # `a� Presented By Referred To � ✓ MINNESOTA � �. Committee: Date 1 RESOLUTION APPROVING AND AUTHORIZING THE ISSUANCE OF A LOAN TO, 2 NIIRATEC SYSTEMS, INC. THROUGH THE STAR YEAR-ROUND LOAN 3 PROGRAM, DISTRICT 4, WARD 2 4 6 WHEREAS, Miratec Systems, Inc. has requested a$197,500 loan through the STAR Yeaz- 7 round Loan Program for building improvements; and 8 9 WHEREAS, the project consists of $395,000 of leasehold improvements to their building 10 located in Williams Hill Industrial Park. The company will provide $197,500 in matching funds ll for the project. The company was founded in 1987 and produces architectural and environmental 12 graphic components serving the sign, screenprint and display industry. The company currently 13 employs 35 people and will continue to grow in it's new location; and 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 WHEREAS, the proposed terms for the loan include a deferral of monthly payments of interest and principal for the first year and then monthly payments of principal and interest over the remaining ten yeazs. Loan repayment will be derived from cash flow from the business; the loan will be evidenced by a full recourse Promissory Note from Miratec Systems. Collateral will consist of a subordinate security interest in all assets of the borrower, including real estate and leases;and WFIEREAS, the borrower will comply with a11 federal, state and local laws and policies but not limited to prevailing wage standards for construction (Davis-Bacon), affirmative action/equal opportunity and targeted business programs; and WHEREAS, the prunary public purpose of the project is to support the vitalaty of industry, retain local business, support commercial activity and increase the tax base; and WfiEREAS, the loan has been reviewed and recommended for approval by the PED Credit Committee and the STAR Boazd which have assigned a credit risk rating of Acceptable to the loan request. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Saint Paul, that approval is hereby granted for a loan in the amount of $197,500 from the STAR Year-round Loan Fund for building vnprovements and renovations, under the terms described herein, and with such additional terms and conditions as the Executive Director of the Housing and Kedevelopment Authority of the City of Saint Paul, Minnesota deems necessary and appropriate. °lg � 1 �3 a 1 BE IT FURTHER RESOLVED, the Bxecutive Director of the Housing and Redevelopment 2 Authority of the City of Saint Paul, Minnesota and other appropriate City officials are authorized 3 to execute the necessaty documents in connection with the loan and grant, in form acceptable to 4 the City Attorney, on behalf of the City. Requested by Department of: Plannina & Economic Develonment � By �, �� Form Approved by City Attorney Approved By By: ��'�� � UI.t �tl ��� �— y 11.;•� d�� b y �v�ca� . — /6 — fo � TOTAL # OF SIGNATURE PAGES p � 1 % �+ �q8' GREEN SHEET No 614i6 ���� �� ��„� � ta �� gQ �,.� — ❑..�,,,��,. ❑,.�,.�,�.�� �.,��,,,�. ❑ (CL1P ALL LO TIONS FOR SIGNATURE) /°� o�.c.s.,. rn;.- e�, c S�e. r►� s.�"y� c., S T�} �P � c�. ti Y'c. � tti�4S t 6 r� th.r` C: �y CQ a. +, e.: t���s �, Aa�. , �dh3� PLANNING CAMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION FIffithi6 Pe��� C.RI WOfKEd UI1dEf 8 fAf1U0CSSOf 11118 (�3f1111M1� YES NO Fias Mis Pe��rm e�xr been a dtY emWoYee7 YES NO Does fhis peisoNfirm poscess a sldll nd nwmallypossessetl by arry cunent city empbyee? YES NO is Mis person/fmi a fargeted vendOfT � YES NO S T$ l2 L o c. h y-..e. 2 v� .c s f �Q .- G���r C e H h c,'� �OVANTAGESIFAPPROVED 6'�¢' �,�,�ry , 4 {�.�...s,� L d0� 1� A�� �-O t..L � ;��z��� ��:� ..� w e �4 �'r � �--- dOUM OF TRANSAC710N S_ I ���L] V[J SOURCE ��� / �Q � 1 /CQ I/L N � MFORMATION (EXPLAIN� CASTrttEVR1UE BUDGETED (CIRCLH ON� ACTNITY NUMBER YES NO �i0l1Pi^.,�3� �a s's?1$`e`s �r� � � ���� �t�-ti�3�- Interdepartmental Memorandum CPPY OF SAII3T PAUL TO: Credit Committee FROM: David J. Gontarek RE: Miratec Systems, Inc. Date: December 7,1998 REPORT SYNOPSIS1PtJRPOSE Miratec Systems is a wholesale manufacturer of architectural and environmental graphic components serving the sign, screenprint and display industry. The company was formed 10 years ago and has grown from 4 to 35 employees. They currently have markets nationwide. The management consists of a national sales manager, operations manager and president and vice president. The company is currently located at 666 Transfer Road in St. Paul. They are in process of building a new manufacturing facility at Williams Hill. This location should serve their space needs for the next twenty yeazs. The company will be leasing the new facility from a holding company (LLC) made up of the president and vice president of the company. They aze requesting $197,500 in Yhe form of a Star loan to help pay for the tenant improvements which will total $395,000. The new building is a 46,000 square foot manufacturing buiiding. It is the second building to be built in the new VJilliams Hili Industrial Park. The building will be owned by the Guinee Family LLC. The building shell is being fmanced by a tax exempt industrial revenue bond issued by the Port Authority of 5t. Paul. The total project cost is $2,700,000 ($1.7 tas exempt and .6 taxable). The LLC has injected $400,000 equity into the buitding bring the total to $3,100,OQ0. U.S. Bank has provided a LOC for the project bonds. The Star loan is needed because of the large equity injection on the bond side of the fmancing. The total project when compieted will be $3,500,000. This is a significant investment in one of our high priority redevelopment areas of St. Paul. ��. Sources and Uses of Funds: Use of Funds Relocaflon 40,000 New Const. 320,000 Soft Costs 35,000 Source of Funds StarLoan $197,500 Equity $197,500 The purpose of this report is to risk rate the application for the Staz Board. Miratec is a strong growing company with a bright future. The risk rating is recommended to be acceptable. BUSINESS PROFILE The company manufactures architectural and environmental graphic components. The company has been in business for over ten years and has grown greatly from the original start phase. Their projecfions show continued growth in sales and efficiency due to their expansion at Williams Hill. The management consists of Bert Guinee as President and Cazol Guinee as vice-president. Both have very good experience in their field. LOAN PROFILE The sales haue been increasing and are currently at $3,349,089 in 97. The company is on pace to exceed their projections for 98. 'I`heir debdnet worth ratio is at .95:1, current ratio at 1.17:1. The company will continue to lease the facility from the LLC. Their receivable and payables aze a11 of high quality and cash flow is suff'icient for the companies working capital needs. The request for Star funding is $197,500 at 4% interest for 10 years. The recommended rate is 6.5% for 10 years. The company can afford the non-subsidized rate and the Star loan will help the company with it's cash flow needs. °Ik" 1��� SOURCES OF BORROWER INFORMATION Financial information was provided by the loan applicant and the accounting firm of D.B (Tom) Stewart, III, CPA, EA. REPAYMEN'1' CAPACITY Repayment is based on the Miratec company (tenant) to pay the lease to the LLC. The company shows strong fmancial ability to do this. Further rent income will be available to the LLC through other leases. The facility will have an addiriona122,000 square feet to lease which will further strengthen the repayment ability.. The debt on the industrial revenue bond is $125,000 and the Star loan $17,670. The company has existing cash flow for debt payment of $325,000. As the remainder of the building is leased to other users additional cash flow will be available for debt service. LOAN AGREEMENTS At closing the Borrower will execute a loan agreement, note, personal gty, mortgage, assignment of leases and rents and UCC on assets of the company. INSURANCE All insurance requirements aze outlined in the existing lease of the facility. SECURITY AND COLLATERAL The security of the loan wili be a note, loan agreement,UCC ,personal gty and mortgage on the new manufacturing facility. PORTFOLIO MONITORING This is a Staz loan request and the monitoring will be through the Star Program. I�1 : 11Ti1: ►i� I�Y The public benefit listed by the borrower are to: support vitality of Indushy and stabilize mazket value. The company also employs 36 full tune employees and will add 7 a year for the next five years.