98-487Council File # 1 V � �Y
ORI��NAL
Presented By
��\� �
f�
�
Referred To
RESOLUTION
Green Sheet #
ESOTA
Committee: Date
RESOLUTION APPROVING AND AUTHORIZING THE ISSI7ANCE OF A LOAN TO TWIN
CITIES ACADEMY THROUGH THE STAR REVOLVING LOAN PROGRAM,
DISTRICT 9
2 WFIEREAS, Twin Cities Academy, a Minnesota Non-profit Cotporation, has requested a$40,000 loan and a
3 $4,000 grant through the STAR Revolving Loan program for building improvements and renovations; and
4
5
6
7
S
9
10
11
12
13
14
15
16
17
18
l9
?0
WH�REAS, the project consists of the renovation of the former St. 7ames parish school at the corner of
Randolph and View Street for use as a Charter School. Tota1 project cost is $88,QOQ and consists of $48,000
for leasehold improvements and $40,000 for lease prepayxnent/deposit; and
WI3EREAS, the proposed terms for the loan include monthly payxnents over a five year term, maturing in
2003, with loan repayxnent from program income; loan will be evidenced by a full recourse Promissory Note
from Twin Ciries Academy to City; collateral will consist of a subordinate security interest in all assets of
Twin Cities Academy and a Collateral Assignment of Lease; and
WHEREAS, the borrower will comply with a11 federal, state and local laws and policies but not limited to
prevailing wage standazds for construcrion (Davis-Bacon), affirmative action(equal opportunity and targeted
business programs; and
WI�EREAS, the primary public purpose of the project is job creation, also support of commercial activity
and stabilize market value
'.1 NOW, THEREFORE BE TT RESOLVED, by the Council of the City of Saint Paul, that
2(1) approval is hereby granted for a loan in the amount of $40,000.00 and a grant in the amount of $4,000
3 from the STAR Revolving Loan Fund for building improvements and renovations, under the terms described
4 herein, and with such additional terms and conditions as the Director of the Department of Planning and
5 Economic Development deems necessary and appropriate.
i
7 (2) that the Director of the Department of Planning and Economic Development and other appropriate City
� officials aze authorized to execute the necessary documents in connection with the loan, in form acceptable to
' the City Attorney, on behalf of the City; and
38
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I
qY-yY7
(3) that the Mayor, pursuant to Sea 10.07.01 of the City Charter, recommends the following changes to the
1998 budget.
Spending Pian:
Fund 930 City Sales Taa� Capital Projects
P7-930-90305-0547-77103 $238,100
P7-930-90306-0547-77103 $23,400
STAR Business Revolving Loan Program
Current
Budget
$0
$0
Change
($40,000}
($4,000)
$40,000
4 000
Amended
Budget
$198,100
$19,400
P7-430-90305-0547-77152
P7-930-90305-0547-77152
Twin Cities Academy Project
Net Change
oR���NA�
�
$4Q,000
$4,000
/. �
By: —�� =�--�,�
Approved by Mayo� Da�e �
Requested by Department of:
Plannin & onomic D, lo ment
by : % f/li�.."—
Form Approved b�:,City Attorney
By:
Approved
By:
to Council
By:
Adopted by Council: Date p
Adoptio� Certified by Counc'1 Secretary
9Y-4b��
-.
�-4��9
�wtat� \o i t�1R6'
=a-t 9t
/SSIGN
NUYB@LFOR
ROVIIN�
TQTAL # OF SIGNATURE PAGES
GREEN
roo 65136
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I.C.i � ❑
C{fY11iSOWEII c1tYCtFPIC �
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T {CLIP AI.L LOCATIONS FOR SIGNATURE)
�'�Sc? � � l0� ��f�� — lN�4X� �i
PLANNING COMMISSION
CIB COMMIITEE
CIYIL SE
y�t��- t_C1 i(xc
Flas this pe�wM,m e+er woAcetl under a coMt�t for ihis tic�partmeM'!
YES NO
Nas this OefeonKfin ever 6een a cRy emPbYee?
YES NO
Oces this persoNfirm possess a sluli n� rwrmatlypossessetl by any curteM city employee�
YES NO
la Mis p�vsoNfim e targeted venda7
YES NO
�lain all ves arisvrers on seoaroM shee4 antl attach W nreen sheet
t.v�- f�-sf b /�'.,r}.. G`�ts a�c� �' ��1� ��nec�� �r�
s� �s 1`o�,i. ��m/ '�'.r u.rse �S c� r,l�.�S .�e.�a�
�
4DVANTAGESIFAPPROVED
,��G�ir'9 �� 8��
3
��i+ .E�LF3
MAY 2 8 i99�
N?AYC�R`S QFFlCE
�2 (�Q'
APPROVED
,.. �
S�r,�`! ? 2 199$
�r�� v u . . ...'� �.v
'_" _ . _......."_�
� V��-� .P^„j� � e,w.� e �
'AL AMOUNT OF TRANSACTlON S�7 ({ LtJ d
DINGSOURCE �� � ����rf I\ �
icwi iNFOaManoN cEwwM
COST1ftEYENUEBUDGETED(CNiCLEON� YES NO
acnvmNUn+a�c ��- q3��9a.3�s-osy� - ��/,�.z
S:our�f �?ese�=m� Ces�fef
DEPARTMENT OF PLANNING
& ECONQMIC DEVEIAPMENT
Pame1¢ A'heelock, Director
CITY OF SAINT PAUL
Norm Colemars, Mayar
Interde�artmental Memnrandum
To: City Councii
From:
Date:
Re:
John O'Brien
May 21, 1998
25 West Forvth S[reet
Saim Paul, MN SSZO2
Twin Cities Academy
STAR Business Revolving Loan Program
PROJECT SUMMARY
� "��d��
Telepharte: 612-266-6655
Facsintiiz 612-228-3?61
The project consists of the renovation of the former St. James parish school at 486 View
Street for use as a Charter School.
Staff recommends approval of a STAR loan in the amount of $40,000, to be used for
eligible capital expenses for the renovation of the existing building. It is recommended
that this loan be risk rated Doubtful. In addition to the loan, the program offers a 10%
grant to help offset the added cost of compiiance. The grant amount for this request is
$4,000.
BUSINESS PRO�ILE
Twin Cities Academy was formed as a non-pro�t corporation and authorized by the St.
Paui School Board in October, 1997 and by the State Board of Education in 3anuary,
1998. Non-profit status for the barrower under section 501(c)(3) of the Intemal Revenue
Code has not been received as of this date. The school's purpose is to provide an
academically challenging program which emphasizes academics, business skills and
citizenship to students entering 6th, 7th and 8th grades.
Charter Schools are authorized by a school district and the State Board of Education and
are public schools which operate independent of the school district. Funding for the
Charter Schools are similar to the school dastricts, receiving funding from the State based
upon the number of students, age of students and the economic class of the students.
�� -y�?
MANAGEMENT AND BOARD
Organizers:
7ohn Bacal
Alberto Monsenate
Bruce Vandei
Consultant to Mayor Coleman
Financial Consultant
Program Director MMEP
Board of Directors:
Roxy Foster
Scheffer Lang
Kent Eklund
Michaei Hartoonian
Stanley Shepard
Cher Chou Vang
Delores Henderson
Chair
Secretary - Treasurer
Parent
Retiredlteacher
President of Cincinnatus
U of M Professor
RetirediBush Foundation
Hmong Amer. Alliance Church
J.J. Hill Montessori Magnet
SOURCES AND USES OF FUNDS
Sources:
St. Anthony Park Bank
STAR(HRA Loan
STAR/HRA Cnant
Total Sources of Funds
Uses:
Leasehold Improvements
and Equipment
Lease prepayment/deposit
Total Uses
LOAN PROFILE
$44,000
$40,000
4 000
$88,000
$48,000
4 0 0
$88,000
The loan will be for $40,000 and be used to fund building renovation and rehabilitation.
The loan will be in a shared first position with St. Anthony Park State Bank. The term of
the loan is for five years which matches the lease term. Repayment shall be due in equal,
monthly installments of principal and interest, computed on a 360 day basis and a fixed
interest rate of 7%. Under the STAR program, the first year of payments is deferred.
Security for the loan will consist of a UCC-1 filing on all assets of the $orrower and a
Collateral Assignment of Lease. The proceeds are to be used primarily for leasehold
improvements and as such, no coliataral value is assigned.
q�-yY'1
PUBLIC PURPOSE
The public purpose of this loan is Yied directly to the fulfillment of the objectives of job
creation. See the attached Pubiic Purpose Summary. The Public Cost of this project is
$26,145.09 based upon the interest rate, loan repayment term, a grant in the amount of
$4,000 and a risk rating of Doubtful.
RECOMMENDATION
Staff recommends approvai of this loan request, a grant in the amount of $4,000 and a
risk rating of Doubtful. This rating is based upon the projections provided by the
borrower which project sufficient cash flow to repay debt , yet the project has no
coIlateral value and the ability of the borrower to attract students is unknown. Almost all
revenue is program based and as long as the school qualifies, is available for use.
Council File # 1 V � �Y
ORI��NAL
Presented By
��\� �
f�
�
Referred To
RESOLUTION
Green Sheet #
ESOTA
Committee: Date
RESOLUTION APPROVING AND AUTHORIZING THE ISSI7ANCE OF A LOAN TO TWIN
CITIES ACADEMY THROUGH THE STAR REVOLVING LOAN PROGRAM,
DISTRICT 9
2 WFIEREAS, Twin Cities Academy, a Minnesota Non-profit Cotporation, has requested a$40,000 loan and a
3 $4,000 grant through the STAR Revolving Loan program for building improvements and renovations; and
4
5
6
7
S
9
10
11
12
13
14
15
16
17
18
l9
?0
WH�REAS, the project consists of the renovation of the former St. 7ames parish school at the corner of
Randolph and View Street for use as a Charter School. Tota1 project cost is $88,QOQ and consists of $48,000
for leasehold improvements and $40,000 for lease prepayxnent/deposit; and
WI3EREAS, the proposed terms for the loan include monthly payxnents over a five year term, maturing in
2003, with loan repayxnent from program income; loan will be evidenced by a full recourse Promissory Note
from Twin Ciries Academy to City; collateral will consist of a subordinate security interest in all assets of
Twin Cities Academy and a Collateral Assignment of Lease; and
WHEREAS, the borrower will comply with a11 federal, state and local laws and policies but not limited to
prevailing wage standazds for construcrion (Davis-Bacon), affirmative action(equal opportunity and targeted
business programs; and
WI�EREAS, the primary public purpose of the project is job creation, also support of commercial activity
and stabilize market value
'.1 NOW, THEREFORE BE TT RESOLVED, by the Council of the City of Saint Paul, that
2(1) approval is hereby granted for a loan in the amount of $40,000.00 and a grant in the amount of $4,000
3 from the STAR Revolving Loan Fund for building improvements and renovations, under the terms described
4 herein, and with such additional terms and conditions as the Director of the Department of Planning and
5 Economic Development deems necessary and appropriate.
i
7 (2) that the Director of the Department of Planning and Economic Development and other appropriate City
� officials aze authorized to execute the necessary documents in connection with the loan, in form acceptable to
' the City Attorney, on behalf of the City; and
38
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51
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57
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64
65
66
67
69
70
71
72
7 3
r4
'S
6
7
8
9
)
�
I
qY-yY7
(3) that the Mayor, pursuant to Sea 10.07.01 of the City Charter, recommends the following changes to the
1998 budget.
Spending Pian:
Fund 930 City Sales Taa� Capital Projects
P7-930-90305-0547-77103 $238,100
P7-930-90306-0547-77103 $23,400
STAR Business Revolving Loan Program
Current
Budget
$0
$0
Change
($40,000}
($4,000)
$40,000
4 000
Amended
Budget
$198,100
$19,400
P7-430-90305-0547-77152
P7-930-90305-0547-77152
Twin Cities Academy Project
Net Change
oR���NA�
�
$4Q,000
$4,000
/. �
By: —�� =�--�,�
Approved by Mayo� Da�e �
Requested by Department of:
Plannin & onomic D, lo ment
by : % f/li�.."—
Form Approved b�:,City Attorney
By:
Approved
By:
to Council
By:
Adopted by Council: Date p
Adoptio� Certified by Counc'1 Secretary
9Y-4b��
-.
�-4��9
�wtat� \o i t�1R6'
=a-t 9t
/SSIGN
NUYB@LFOR
ROVIIN�
TQTAL # OF SIGNATURE PAGES
GREEN
roo 65136
W ovua«wrons.crw� �_� ��,C"r`°'""''—
I.C.i � ❑
C{fY11iSOWEII c1tYCtFPIC �
�+,���C� ❑�.�,.a,�
�) �1�AVOR1oRASxiANn ❑
T {CLIP AI.L LOCATIONS FOR SIGNATURE)
�'�Sc? � � l0� ��f�� — lN�4X� �i
PLANNING COMMISSION
CIB COMMIITEE
CIYIL SE
y�t��- t_C1 i(xc
Flas this pe�wM,m e+er woAcetl under a coMt�t for ihis tic�partmeM'!
YES NO
Nas this OefeonKfin ever 6een a cRy emPbYee?
YES NO
Oces this persoNfirm possess a sluli n� rwrmatlypossessetl by any curteM city employee�
YES NO
la Mis p�vsoNfim e targeted venda7
YES NO
�lain all ves arisvrers on seoaroM shee4 antl attach W nreen sheet
t.v�- f�-sf b /�'.,r}.. G`�ts a�c� �' ��1� ��nec�� �r�
s� �s 1`o�,i. ��m/ '�'.r u.rse �S c� r,l�.�S .�e.�a�
�
4DVANTAGESIFAPPROVED
,��G�ir'9 �� 8��
3
��i+ .E�LF3
MAY 2 8 i99�
N?AYC�R`S QFFlCE
�2 (�Q'
APPROVED
,.. �
S�r,�`! ? 2 199$
�r�� v u . . ...'� �.v
'_" _ . _......."_�
� V��-� .P^„j� � e,w.� e �
'AL AMOUNT OF TRANSACTlON S�7 ({ LtJ d
DINGSOURCE �� � ����rf I\ �
icwi iNFOaManoN cEwwM
COST1ftEYENUEBUDGETED(CNiCLEON� YES NO
acnvmNUn+a�c ��- q3��9a.3�s-osy� - ��/,�.z
S:our�f �?ese�=m� Ces�fef
DEPARTMENT OF PLANNING
& ECONQMIC DEVEIAPMENT
Pame1¢ A'heelock, Director
CITY OF SAINT PAUL
Norm Colemars, Mayar
Interde�artmental Memnrandum
To: City Councii
From:
Date:
Re:
John O'Brien
May 21, 1998
25 West Forvth S[reet
Saim Paul, MN SSZO2
Twin Cities Academy
STAR Business Revolving Loan Program
PROJECT SUMMARY
� "��d��
Telepharte: 612-266-6655
Facsintiiz 612-228-3?61
The project consists of the renovation of the former St. James parish school at 486 View
Street for use as a Charter School.
Staff recommends approval of a STAR loan in the amount of $40,000, to be used for
eligible capital expenses for the renovation of the existing building. It is recommended
that this loan be risk rated Doubtful. In addition to the loan, the program offers a 10%
grant to help offset the added cost of compiiance. The grant amount for this request is
$4,000.
BUSINESS PRO�ILE
Twin Cities Academy was formed as a non-pro�t corporation and authorized by the St.
Paui School Board in October, 1997 and by the State Board of Education in 3anuary,
1998. Non-profit status for the barrower under section 501(c)(3) of the Intemal Revenue
Code has not been received as of this date. The school's purpose is to provide an
academically challenging program which emphasizes academics, business skills and
citizenship to students entering 6th, 7th and 8th grades.
Charter Schools are authorized by a school district and the State Board of Education and
are public schools which operate independent of the school district. Funding for the
Charter Schools are similar to the school dastricts, receiving funding from the State based
upon the number of students, age of students and the economic class of the students.
�� -y�?
MANAGEMENT AND BOARD
Organizers:
7ohn Bacal
Alberto Monsenate
Bruce Vandei
Consultant to Mayor Coleman
Financial Consultant
Program Director MMEP
Board of Directors:
Roxy Foster
Scheffer Lang
Kent Eklund
Michaei Hartoonian
Stanley Shepard
Cher Chou Vang
Delores Henderson
Chair
Secretary - Treasurer
Parent
Retiredlteacher
President of Cincinnatus
U of M Professor
RetirediBush Foundation
Hmong Amer. Alliance Church
J.J. Hill Montessori Magnet
SOURCES AND USES OF FUNDS
Sources:
St. Anthony Park Bank
STAR(HRA Loan
STAR/HRA Cnant
Total Sources of Funds
Uses:
Leasehold Improvements
and Equipment
Lease prepayment/deposit
Total Uses
LOAN PROFILE
$44,000
$40,000
4 000
$88,000
$48,000
4 0 0
$88,000
The loan will be for $40,000 and be used to fund building renovation and rehabilitation.
The loan will be in a shared first position with St. Anthony Park State Bank. The term of
the loan is for five years which matches the lease term. Repayment shall be due in equal,
monthly installments of principal and interest, computed on a 360 day basis and a fixed
interest rate of 7%. Under the STAR program, the first year of payments is deferred.
Security for the loan will consist of a UCC-1 filing on all assets of the $orrower and a
Collateral Assignment of Lease. The proceeds are to be used primarily for leasehold
improvements and as such, no coliataral value is assigned.
q�-yY'1
PUBLIC PURPOSE
The public purpose of this loan is Yied directly to the fulfillment of the objectives of job
creation. See the attached Pubiic Purpose Summary. The Public Cost of this project is
$26,145.09 based upon the interest rate, loan repayment term, a grant in the amount of
$4,000 and a risk rating of Doubtful.
RECOMMENDATION
Staff recommends approvai of this loan request, a grant in the amount of $4,000 and a
risk rating of Doubtful. This rating is based upon the projections provided by the
borrower which project sufficient cash flow to repay debt , yet the project has no
coIlateral value and the ability of the borrower to attract students is unknown. Almost all
revenue is program based and as long as the school qualifies, is available for use.
Council File # 1 V � �Y
ORI��NAL
Presented By
��\� �
f�
�
Referred To
RESOLUTION
Green Sheet #
ESOTA
Committee: Date
RESOLUTION APPROVING AND AUTHORIZING THE ISSI7ANCE OF A LOAN TO TWIN
CITIES ACADEMY THROUGH THE STAR REVOLVING LOAN PROGRAM,
DISTRICT 9
2 WFIEREAS, Twin Cities Academy, a Minnesota Non-profit Cotporation, has requested a$40,000 loan and a
3 $4,000 grant through the STAR Revolving Loan program for building improvements and renovations; and
4
5
6
7
S
9
10
11
12
13
14
15
16
17
18
l9
?0
WH�REAS, the project consists of the renovation of the former St. 7ames parish school at the corner of
Randolph and View Street for use as a Charter School. Tota1 project cost is $88,QOQ and consists of $48,000
for leasehold improvements and $40,000 for lease prepayxnent/deposit; and
WI3EREAS, the proposed terms for the loan include monthly payxnents over a five year term, maturing in
2003, with loan repayxnent from program income; loan will be evidenced by a full recourse Promissory Note
from Twin Ciries Academy to City; collateral will consist of a subordinate security interest in all assets of
Twin Cities Academy and a Collateral Assignment of Lease; and
WHEREAS, the borrower will comply with a11 federal, state and local laws and policies but not limited to
prevailing wage standazds for construcrion (Davis-Bacon), affirmative action(equal opportunity and targeted
business programs; and
WI�EREAS, the primary public purpose of the project is job creation, also support of commercial activity
and stabilize market value
'.1 NOW, THEREFORE BE TT RESOLVED, by the Council of the City of Saint Paul, that
2(1) approval is hereby granted for a loan in the amount of $40,000.00 and a grant in the amount of $4,000
3 from the STAR Revolving Loan Fund for building improvements and renovations, under the terms described
4 herein, and with such additional terms and conditions as the Director of the Department of Planning and
5 Economic Development deems necessary and appropriate.
i
7 (2) that the Director of the Department of Planning and Economic Development and other appropriate City
� officials aze authorized to execute the necessary documents in connection with the loan, in form acceptable to
' the City Attorney, on behalf of the City; and
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
69
70
71
72
7 3
r4
'S
6
7
8
9
)
�
I
qY-yY7
(3) that the Mayor, pursuant to Sea 10.07.01 of the City Charter, recommends the following changes to the
1998 budget.
Spending Pian:
Fund 930 City Sales Taa� Capital Projects
P7-930-90305-0547-77103 $238,100
P7-930-90306-0547-77103 $23,400
STAR Business Revolving Loan Program
Current
Budget
$0
$0
Change
($40,000}
($4,000)
$40,000
4 000
Amended
Budget
$198,100
$19,400
P7-430-90305-0547-77152
P7-930-90305-0547-77152
Twin Cities Academy Project
Net Change
oR���NA�
�
$4Q,000
$4,000
/. �
By: —�� =�--�,�
Approved by Mayo� Da�e �
Requested by Department of:
Plannin & onomic D, lo ment
by : % f/li�.."—
Form Approved b�:,City Attorney
By:
Approved
By:
to Council
By:
Adopted by Council: Date p
Adoptio� Certified by Counc'1 Secretary
9Y-4b��
-.
�-4��9
�wtat� \o i t�1R6'
=a-t 9t
/SSIGN
NUYB@LFOR
ROVIIN�
TQTAL # OF SIGNATURE PAGES
GREEN
roo 65136
W ovua«wrons.crw� �_� ��,C"r`°'""''—
I.C.i � ❑
C{fY11iSOWEII c1tYCtFPIC �
�+,���C� ❑�.�,.a,�
�) �1�AVOR1oRASxiANn ❑
T {CLIP AI.L LOCATIONS FOR SIGNATURE)
�'�Sc? � � l0� ��f�� — lN�4X� �i
PLANNING COMMISSION
CIB COMMIITEE
CIYIL SE
y�t��- t_C1 i(xc
Flas this pe�wM,m e+er woAcetl under a coMt�t for ihis tic�partmeM'!
YES NO
Nas this OefeonKfin ever 6een a cRy emPbYee?
YES NO
Oces this persoNfirm possess a sluli n� rwrmatlypossessetl by any curteM city employee�
YES NO
la Mis p�vsoNfim e targeted venda7
YES NO
�lain all ves arisvrers on seoaroM shee4 antl attach W nreen sheet
t.v�- f�-sf b /�'.,r}.. G`�ts a�c� �' ��1� ��nec�� �r�
s� �s 1`o�,i. ��m/ '�'.r u.rse �S c� r,l�.�S .�e.�a�
�
4DVANTAGESIFAPPROVED
,��G�ir'9 �� 8��
3
��i+ .E�LF3
MAY 2 8 i99�
N?AYC�R`S QFFlCE
�2 (�Q'
APPROVED
,.. �
S�r,�`! ? 2 199$
�r�� v u . . ...'� �.v
'_" _ . _......."_�
� V��-� .P^„j� � e,w.� e �
'AL AMOUNT OF TRANSACTlON S�7 ({ LtJ d
DINGSOURCE �� � ����rf I\ �
icwi iNFOaManoN cEwwM
COST1ftEYENUEBUDGETED(CNiCLEON� YES NO
acnvmNUn+a�c ��- q3��9a.3�s-osy� - ��/,�.z
S:our�f �?ese�=m� Ces�fef
DEPARTMENT OF PLANNING
& ECONQMIC DEVEIAPMENT
Pame1¢ A'heelock, Director
CITY OF SAINT PAUL
Norm Colemars, Mayar
Interde�artmental Memnrandum
To: City Councii
From:
Date:
Re:
John O'Brien
May 21, 1998
25 West Forvth S[reet
Saim Paul, MN SSZO2
Twin Cities Academy
STAR Business Revolving Loan Program
PROJECT SUMMARY
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Telepharte: 612-266-6655
Facsintiiz 612-228-3?61
The project consists of the renovation of the former St. James parish school at 486 View
Street for use as a Charter School.
Staff recommends approval of a STAR loan in the amount of $40,000, to be used for
eligible capital expenses for the renovation of the existing building. It is recommended
that this loan be risk rated Doubtful. In addition to the loan, the program offers a 10%
grant to help offset the added cost of compiiance. The grant amount for this request is
$4,000.
BUSINESS PRO�ILE
Twin Cities Academy was formed as a non-pro�t corporation and authorized by the St.
Paui School Board in October, 1997 and by the State Board of Education in 3anuary,
1998. Non-profit status for the barrower under section 501(c)(3) of the Intemal Revenue
Code has not been received as of this date. The school's purpose is to provide an
academically challenging program which emphasizes academics, business skills and
citizenship to students entering 6th, 7th and 8th grades.
Charter Schools are authorized by a school district and the State Board of Education and
are public schools which operate independent of the school district. Funding for the
Charter Schools are similar to the school dastricts, receiving funding from the State based
upon the number of students, age of students and the economic class of the students.
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MANAGEMENT AND BOARD
Organizers:
7ohn Bacal
Alberto Monsenate
Bruce Vandei
Consultant to Mayor Coleman
Financial Consultant
Program Director MMEP
Board of Directors:
Roxy Foster
Scheffer Lang
Kent Eklund
Michaei Hartoonian
Stanley Shepard
Cher Chou Vang
Delores Henderson
Chair
Secretary - Treasurer
Parent
Retiredlteacher
President of Cincinnatus
U of M Professor
RetirediBush Foundation
Hmong Amer. Alliance Church
J.J. Hill Montessori Magnet
SOURCES AND USES OF FUNDS
Sources:
St. Anthony Park Bank
STAR(HRA Loan
STAR/HRA Cnant
Total Sources of Funds
Uses:
Leasehold Improvements
and Equipment
Lease prepayment/deposit
Total Uses
LOAN PROFILE
$44,000
$40,000
4 000
$88,000
$48,000
4 0 0
$88,000
The loan will be for $40,000 and be used to fund building renovation and rehabilitation.
The loan will be in a shared first position with St. Anthony Park State Bank. The term of
the loan is for five years which matches the lease term. Repayment shall be due in equal,
monthly installments of principal and interest, computed on a 360 day basis and a fixed
interest rate of 7%. Under the STAR program, the first year of payments is deferred.
Security for the loan will consist of a UCC-1 filing on all assets of the $orrower and a
Collateral Assignment of Lease. The proceeds are to be used primarily for leasehold
improvements and as such, no coliataral value is assigned.
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PUBLIC PURPOSE
The public purpose of this loan is Yied directly to the fulfillment of the objectives of job
creation. See the attached Pubiic Purpose Summary. The Public Cost of this project is
$26,145.09 based upon the interest rate, loan repayment term, a grant in the amount of
$4,000 and a risk rating of Doubtful.
RECOMMENDATION
Staff recommends approvai of this loan request, a grant in the amount of $4,000 and a
risk rating of Doubtful. This rating is based upon the projections provided by the
borrower which project sufficient cash flow to repay debt , yet the project has no
coIlateral value and the ability of the borrower to attract students is unknown. Almost all
revenue is program based and as long as the school qualifies, is available for use.