8932-17 Authorize three-year loan to Western Reserve Distillers

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Loan Terms Five (5) years; • Forgivable at $18,000 per year based on continued satisfaction of all loan terms including the following EDF program job creation and reporting requirements. • Western Reserve Distillers must secure all private financing commitments necessary to complete the project prior to issuance of Economic Development Loan funds. • The City will lien on the subject property against its $90,000 in EDF loan assistance releasable over five (5) years in $18,000 increments predicated on satisfaction of all loan terms including the job creation, documentation, data collection, and reporting requirements detailed below. • Western Reserve Distillers must execute a project completion guarantee with the City. Job Creation, Documentation, Data Collection & Reporting Requirements As Lakewood's EDF is funded with federal Community Development Block Grant (CDBG) dollars, Borrowers must comply with the following CDBG job creation, documentation, data collection, and reporting requirements. Job Creation Western Reserve Distillers must create no fewer than (5) new, permanent, full -time equivalent (FTE) jobs within (24) months following execution of the City of Lakewood EDF Loan Agreement; At least (3) of the jobs created must be suitable for and held by low- moderate - income (LMI) persons earning less than 80% of the Area Median Income (AM]) established annually by the U.S. Department of Housing Urban Development (HUD) prior to being hired. Failure to fulfill job creation requirements within the performance period constitutes loan default. Data Collection The annual household income, prior to being hired, and other characteristics (race /ethnicity, disability, elderly, female head of household status) of all applicants considered for and persons employed to fill positions created as a result of the funded project must be documented and submitted on City - provided forms. Documentation Prior to loan closing, the following documents must be submitted to and approved by the City of Lakewood. Baseline Employment Summary indicating Borrower's total number of payroll positions, total number of employees, and total number of payroll positions suitable for low- moderate income persons prior to executing the EDP Agreement to establish a benchmark from which to measure and verify new, permanent positions created and employees hired as a result of the funded project. Certified Payroll for the period immediately prior to executing the EDF Agreement; Job Creation & Hiring Plan indicating the number and type of FTE positions to be created as a result of the funded project.