Title
Resolution approving refinancing terms of the Economic Development Loans with Quest Corporation, d/b/a Graphic Impressions, Inc., located at 7328 W. Greenfield Ave.
Body
WHEREAS, Quest Corporation, d/b/a Graphic Impressions, Inc., a corporation created under the laws of Wisconsin, operating at 7328 W. Greenfield Avenue, West Allis, WI, received Common Council approval on February 6, 2001, for an Economic Development Loan in the sum $50,000 and Common Council approval on February 6, 2001, for an Economic Development Loan in the sum of $25,000; and,
WHEREAS, since the tragic events of September 11, 2001, and the subsequent downturn in the economy that resulted in slow sales within the printing industry, Quest Corporation, d/b/a Graphic Impressions, Inc., in September of 2002, reduced its workforce, streamlined expenses, and requested a forbearance on loan payments for three to six months or until March, 2003; and,
WHEREAS, the Common Council approved a communication from the Department of Development on September 11, 2002, recommending a forbearance on loan payments and refinancing terms with an effective date of December 31, 2002, for Quest Corporation, d/b/a Graphic Impressions, Inc.'s economic loans, attached and incorporated herein as Exhibit A; and,
WHEREAS, the terms approved by the Common Council on October 1, 2002, were not incorporated into a new promissory note and mortgage; and,
WHEREAS, the Department of Development recommends the following refinancing terms and conditions to the Economic Development Loans with Quest Corporation, d/b/a Graphic Impressions, Inc.:
1. Interest to be recalculated at 7.5 % using the date of September, 2002, for both loans. One-third of the interest accrued will be waived as an incentive to Quest Corporation, d/b/a Graphic Impressions, Inc.
2. In May, 2004, the balance (including accrued interest from December, 2002) on the $50,000 second mortgage Economic Development Loan to be refinanced at 7.5% interest for a term of 10 years with a 20-year amortization and a balloon payment in 120 months.
3. In May, 2004, the balance (including accrued interest from December, 2002) on the $25,000 loan, originally made for equipment purchases, to be refinanced at 7.5% interest for a term of 10 years with a 20-year amortization and a balloon payment in 120 months.
WHEREAS, the refinancing will maintain the City's current positions and security of the economic development loans; and,
NOW, THEREFORE, BE IT RESOLVED that the Common Council approves the refinancing terms of the Economic Development Loans with Quest Corporation, d/b/a Graphic Impressions, Inc.
BE IT FURTHER RESOLVED, that the Common Council authorizes the Director of Development, or his designee, to develop and enter into a new promissory note and mortgage with Quest Corporation, d/b/a Graphic Impressions, Inc.
BE IT FURTHER RESOLVED that the City Attorney be and is hereby authorized to make such non-substantive changes, modifications, additions and deletions to and from the various provisions of the promissory note and mortgage, including any and all attachments, exhibits, addendums and amendments, as may be necessary and proper to correct inconsistencies, eliminate ambiguity and otherwise clarify and supplement said provisions to preserve and maintain the general intent thereof, and to prepare and deliver such other and further documents as may be reasonably necessary to complete the transactions contemplated therein.
cc: Development Department
Chris Phinney, Grant Accounting Specialist
Dev-R345\jmg\5-4-04