Local Option Review Team

LOCAL OPTION REVIEW TEAM Thursday, January 28, 2020 - 12:00 p.m. 400 East Military, Fremont, Nebraska (attendance is limited) and Zoom Topic: Local Option Review Team Meeting Time: Jan 28, 2021 12:00 PM Central Time (US and Canada) Join Zoom Meeting https://zoom.us/j/96221056501?pwd=UDE4UEh3SERVTFJkVXVvVXUveVgwQT09 Meeting ID: 962 2105 6501 Passcode: 940887 One tap mobile +16699009128,,96221056501# US (San Jose) +12532158782,,96221056501# US (Tacoma) Dial by your location +1 669 900 9128 US (San Jose) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 646 558 8656 US (New York) +1 301 715 8592 US (Washington D.C) +1 312 626 6799 US (Chicago) Meeting ID: 962 2105 6501 Find your local number: https://zoom.us/u/auESteiaH Telephone Audio Information Call: +1 301 715 8592 US Enter Meeting ID: 962 2105 6501 Passcode: 940887 You will be connected to the meeting. If making a comment during a public hearing or comment period please press *9 to electronically raise your hand allowing the Chairman to call on you. Once called upon to speak please press * 6 to unmute your phone; press * 6 again to mute when finished speaking Page 1 of 15  LOCAL OPTION REVIEW TEAM Thursday, January 28, 2021 - 12:00 p.m. 400 East Military, Fremont, Nebraska (attendance is limited) and Zoom 1. Call to Order 2. Approval of minutes from January 14, 2021 meeting. 3. Review Fund Balance. 4. Consider Amending 505 Brewing Company’s Local Option Economic Development Fund Loan. 5. Consider Application from 505 Main Street Group, LLC for Local Option Economic Development Loan. 6. Adjourn. This agenda was posted at the Municipal Building and was distributed to the members of the Local Option Review Team on January 20, 2021. The official current copy is available at City Hall, 400 East Military Avenue. A copy of the Open Meeting Law is posted for review by the public. Page 2 of 15  CITY OF FREMONT LOCAL OPTION REVIEW TEAM JANUARY 14, 2021 – 12:00 p.m. A meeting of the Local Option Review Team was held on January 14, 2021 at 12:00 p.m. at 400 East Military Avenue, Fremont, Nebraska. The meeting was preceded by publicized notice in the Fremont Tribune and the agenda displayed in the Municipal Building. The meeting was open to the public. A continually current copy of the agenda was available for public inspection at the office of the City Administrator, 400 East Military Avenue. The agenda was distributed to the Local Option Review Team on January 6, 2021 and posted, along with the supporting documents on the City’s website. A copy of the open meeting law is posted continually for public inspection. ROLL CALL Roll call showed Members George, Meister, Horeis, Jensen, Mueller, present. Oliva present for items 4- 6. Gibson absent. 6 present, 1 absent. Others in attendance included Lottie Mitchell, City of Fremont; Joey Spellerberg, Mayor; Brian Newton, City Administrator; Jody Sanders, Dir. Of Finance; Garry Clark, Greater Fremont Development Council; Adam Brantman, Anne Loethen Adam, and Roger Rau from New Horizons Cold Storage; and Ashley Grohs from Summit Medical Staffing. APPROVAL OF MINUTES FROM DECEMBER 17, 2021 MEETING. Moved by Member Meister and seconded by Member Horeis to approve the minutes of the December 17, 2020 meeting. Ayes: George, Meister, Horeis, Jensen, and Mueller. Motion carried 5-0. REVIEW FUND BALANCE. Mitchell gave overview. No motion received. CONSIDER APPLICATION FROM NEW HORIZONS COLD STORAGE, LLC FOR A LOCAL OPTION ECONOMIC DEVELOPMENT FUND LOAN. Mitchell gave overview. Adam Brantman and Roger Rau gave overview and answered questions. Moved by Member Meister and seconded by Member Jensen to approve Local Option Economic Development Fund Application from Compound Holdings, LLC/New Horizons Cold Storage in the amount $500,000 at 100% forgiveness and list both entities on the loan transactions. Ayes: George, Meister, Horeis, Jensen, Mueller, and Oliva. Motion carried 6-0. CONSIDER AMENDING SUMMIT MEDICAL STAFFING, LLC LOCAL OPTION ECONIMC DEVELOPMENT LOAN. Mitchell gave overview. Ashley Grohs gave overview and answered questions. Moved by Member Jensen and seconded by Member Meister to recommend to City Council to approve amending the original LB840 award by forgiving the remaining balance of the repayable portion of the first tranche and amending the second tranche to $450,000 at 100% forgiveness. Ayes: George, Meister, Horeis, Jensen, Mueller, and Oliva. Motion carried 6-0. ADJOURNMENT Moved by Member Meister and seconded by Member Jensen to adjourn at 12:36 p.m. Ayes: George, Meister, Horeis, Jensen, Mueller, and Oliva. Motion carried 6-0. 1 Page 3 of 15 Agenda Item #2 City of Fremont Nebraska Status of LB 840 Funds 12/31/2020 Premilinary Estimate Assets: Checking 272,861.20 Money Market 2,367,353.25 Investments 2,500,000.00 5,140,214.45 Capital Transfers 0.00 5,140,214.45 Known Committed Funds: Tech/Bus Park Res 2011-047 420,000.00 Tech/Bus Park Res 2013-095 1,055,291.10 Morningside Business Park Res 2013-095 172,675.14 Morningside Business Park - Johnson Rd South Res 2019-186 0.00 505 Brewing Co Res 2019-240 0.00 Summit Medical Staffing Res 2020-111 100,000.00 WLG Fremont Res 2019-038 0.00 Wholestone Farms Res 2020-052 1,300,000.00 Tech Partners LLC Res 2020-225 0.00 Elemetal Fabrication Res 2020-266 200,000.00 Tech/Bus Park Resolution 2011-047 975,392.00 4,223,358.24 Uncommitted Funds 916,856.21 Page 4 of 15 Agenda Item #3  STAFF REPORT TO: Local Option Review Team FROM: Lottie Mitchell, Plan Administrator DATE: January 28, 2021 SUBJECT: Amendment to Gesell Enterprises, LLC DBA 505 Brewing, LLC Local Option Economic Development Loan Recommendation: Consider request from Gesell Enterprises, LLC DBA 505 Brewing Company, LLC to amend their Local Option Economic Development Loan. Background: The City of Fremont has a Local Option Economic Development (LB840) Plan (the Plan) and loan fund for the purposes of creating new jobs, expanding the labor market, retaining existing jobs, attracting new capital investment, broadening the tax base, and providing economic diversification to ensure economic stability and vitality for the City of Fremont and surrounding areas. Applications are submitted to the plan administrator (City of Fremont) for review. Once the plan administrator has reviewed and determined the application is eligible for LB840 funds, the application is reviewed by the Citizens Advisory Review Committee (CARC) and the Local Option Review Team (LORT). The CARC reviews the application from the standpoint of compliance with the Plan. The LORT reviews the application from the standpoint of project feasibility and the potential future economic benefit to the community of Fremont. Both committees make recommendations to the City Council. The City Council will then consider the overall benefits to the community and will have final authority on approval of the application. Gesell Enterprises, LLC, DBA 505 Brewing Company, LLC (505 Brewing Company), is a start- up microbrewery that came before the committees and City Council in November 2019 with plans of renovating the basement level of the 505 Building located at 505 N Main Street. They were originally awarded $165,000 at 100% forgiveness for the renovation of the basement space and the creation of five full-time positions within two years of their LB840 award. The renovation of the 505 Building has been delayed. While 505 Brewing Company still aspires to renovate the basement level of the 505 Building someday, they are anxious to open their brewery here in Fremont, NE. In an effort to move forward and get their company off the ground they have secured a lease agreement at 349 N Main Street. Therefore, 505 Brewing Company is requesting an amendment to their LB840 loan agreement to add the location of 349 N Main Street. They would still be required to create five full time equivalent positions. The amendment would allow them to utilize their LB840 award at both locations and assist them in getting their business started and meet their employment requirements. Gesell Enterprises, LLC, DBA 505 Brewing Company is an eligible business under Fremont’s Local Option Economic Development Plan in that their principal source of income is derived Page 5 of 15 Agenda Item #4 manufacturing articles of commerce. Staff recommends amending the original LB840 award that was executed in December 2019 by adding 349 N MainStreet, in addition to 505 N Main Street, as an eligible location to utilize the LB840 award and employ eligible jobs towards the job creation requirement. The original job creation schedule remains unchanged:  One (1) full-time equivalent job in the first two years (December 2021)  One (1) additional full-time equivalent job in its company in Fremont, Nebraska by the third year (December 2022)  Three (3) additional full-time equivalent jobs in its company in Fremont, Nebraska by the fourth year (December 2023) All jobs are required to be retained for a period of five (5) years from the date of creation. Fiscal Impact: Local Option Economic Development Fund – No additional impact. Page 6 of 15 Agenda Item #4  Five.0.Five Brewing Company Owners – Shawn Morrow and Tim Gesell Five.0.Five Brewing Company is a start-up microbrewery focusing on downtown Fremont, NE, as its home. We have a passion for great beer and seeing downtown markets flourish. Our vision is to be Fremont’s brand, Nebraska’s brewery. Our mission is to build off of the German beer purity law of water, malt, hops and yeast while adding three more critical ingredients: Art, passion, and community. Fremont is the ideal location for our vision. We are partnering with a Lincoln, NE based brewing equipment manufacturer. This will bring the best equipment in the area to our brewery. This will allow us to offer the best in quality products. The byproduct and benefit of the brewing process is our grain can be given to local farmers for their livestock. Our products will be our core brews, specialty/seasonal brews, guest taps from local breweries, Nebraska spirits, and wine. Our non-alcoholic offerings will be our own root beer and cream soda. We plan to offer food through partnerships with local restaurants in Fremont and area food trucks. Our plan in year one is to target local marketing and growth in our tap house along with local establishments. We want to build our brand in Fremont and engage the community to make our brewery theirs. In year two we plan on installing a canning line and branch out to distribution all around the state of Nebraska. The sky is the limit from there. Our original agreement was signed on December 9, 2019. At this time, our brewery was to be located at 505 N. Main Street in Fremont. Our request is to amend our contract to add 349 N. Main Street in Fremont as a location for our brewery. This request is due to the delay in renovation to the 505 N. Main Street location. There may be an option of having our main taproom bar in the 505 N. Main Street location in the future when the renovation is complete, but at this time we are requesting this add so we can move forward in the alternate location. The change to 349 N. Main Street location will not change our original business plan presented in November of 2019. It will just start it in a different location and allow us to serve the city of Fremont sooner. This new plan would have the brewery opening in late spring/early summer. Another benefit of the new location is that it is better suited for production than the 505 N. Main Street location. This will allow us to accelerate our business plan in distribution. Thank you very much for considering the amendment to our contract. We are committed to downtown Fremont and are very excited to be a part of the exciting growth for the future. Page 7 of 15 Agenda Item #4  STAFF REPORT TO: Local Option Review Team FROM: Lottie Mitchell, Plan Administrator DATE: January 28, 2021 SUBJECT: Local Option Economic Development Application from 505 Main Street Group, LLC for renovation of 505 Main Street. Recommendation: Consider request from 505 Main Street Group, LLC for Local Option Economic Development Loan. Background: The City of Fremont has a Local Option Economic Development (LB840) Plan (the Plan) and loan fund for the purposes of creating new jobs, expanding the labor market, retaining existing jobs, attracting new capital investment, broadening the tax base, and providing economic diversification to ensure economic stability and vitality for the City of Fremont and surrounding areas. Applications are submitted to the plan administrator (City of Fremont) for review. Once the plan administrator has reviewed and determined the application is eligible for LB840 funds, the application is reviewed by the Citizens Advisory Review Committee (CARC) and the Local Option Review Team (LORT). The CARC reviews the application from the standpoint of compliance with the Plan. The LORT reviews the application from the standpoint of project feasibility and the potential future economic benefit to the community of Fremont. Both committees make recommendations to the City Council. The City Council will then consider the overall benefits to the community and will have final authority on approval of the application. 505 Main Street Group, LLC, the owners of the 505 Building at 505 North Main Street, are ready to begin renovation of the 505 Building. The project will consist of a mix of 28 studio and one-bedroom apartments on the upper floors. The first floor will be renovated for commercial use and the basement is planned as a brewery. Their application for LB840 funding is to assist with the renovation costs of the apartments. 505 Main Street Group, LLC is an eligible business as they derive their principal source of income from the rehabilitation of housing. The 2012 Fremont Downtown Revitalization Plan lists the 505 Building as a high priority catalyst project as part of revitalizing Fremont’s Historic Downtown District. The cost to renovate the apartments at the 505 Building is $7,563,540. Construction is scheduled to begin as early as April 2021 and is estimated to last approximately 12 months. The 505 Main Street Group has secured traditional financing, Federal and State Historic Tax Credits, and pledged their own cash, but a gap still remains. They are requesting consideration of a $465,000 – 100% forgivable LB840 award. Staff recommends the full requested amount paid out in three equal tranches of $155,000. Page 8 of 15 Agenda Item #5 The first tranche would be paid upon proof that construction has begun (submission of construction draws). The second and third tranches would be paid annually thereafter. If renovation begins on the 505 Building in April, 2021, we would anticipate the earliest construction draw to be received in May, 2021. The LB840 fund balance is currently $916,856.21 and generates between $65,000-$90,000 monthly. It is projected that the fund will have a balance of $1,254,932 by May 2021. Fiscal Impact: Local Option Economic Development Fund – $465,000.00. Page 9 of 15 Agenda Item #5  &LW\RI)UHPRQW1HEUDVND Request for Assistance Agreement 28th December 20 505 Main Street Group,LLC 7+,65(48(67LVPDGHRQWKLVBBBBGDWHRIBBBBBBBBBBBE\BBBBBBBBBBBBBBBBBBBBBBBBB 505 Main Street Group, LLC of _____________________________________________________________________________ KHUHLQDIWHUUHIHUUHGWRDV³$SSOLFDQW´WRWKH&LW\RI)UHPRQW1HEUDVNDKHUHLQDIWHUUHIHUUHGWRDVWKH³&LW\´ WITNESSETH: :+(5($6$33/,&$17KDVUHTXHVWHGWKH&,7<WRLQYHVWLJDWHWKHIHDVLELOLW\RIREWDLQLQJD/RFDO2SWLRQ 'HYHORSPHQW3ODQ/RDQRU(FRQRPLF(QKDQFHPHQW/RDQLQFRQQHFWLRQZLWKWKH¿QDQFLQJRIDSURMHFWWREH XQGHUWDNHQE\$33/,&$17 12:7+(5()25(LQFRQVLGHUDWLRQRIWKHUHTXHVWWKHIROORZLQJPD\EHGRQH 1. &LW\DJUHHVWRZRUNZLWKWKH$SSOLFDQWWRLQYHVWLJDWHWKHIHDVLELOLW\RIREWDLQLQJ¿QDQFLQJWKURXJKD/RFDO2SWLRQ 'HYHORSPHQW3ODQ/RDQRU(FRQRPLF(QKDQFHPHQW/RDQIRUWKH3URMHFW&LW\ZLOOLQYHVWLJDWHWKH¿QDQFLDO FRQGLWLRQRI$SSOLFDQWDQGGHWHUPLQHZKHWKHURUQRWD/RFDO2SWLRQ'HYHORSPHQW3ODQ/RDQ$SSOLFDWLRQ RU(FRQRPLF(QKDQFHPHQW/RDQ$SSOLFDWLRQLVDSSURSULDWH&LW\ZLOOVXEPLWWKHQHHGHGSDSHUZRUNIRUD /RFDO2SWLRQ'HYHORSPHQW3ODQ/RDQRU(FRQRPLF(QKDQFHPHQW/RDQIRUWKH$SSOLFDQWWRWKHDSSURSULDWH committees and City Council, if: • $SSOLFDQWLVZLWKLQWKHHOLJLELOLW\FULWHULDDQGWKH3URMHFWLVOLNHO\WREHDSSURYHGE\WKH&LW\&RXQFLOIRUD Local Option Development Plan or Economic Enhancement Loan, and; • $OORWKHUHOHPHQWVRIWKH3URMHFWFDQEH¿QDQFHGDQGRUSDLGIRUWKURXJKWKHLQIXVLRQRIHTXLW\FDSLWDOE\WKH $SSOLFDQW 2. ,IWKH&LW\GHWHUPLQHVLQLWVVROHGLVFUHWLRQWKDWWKH$SSOLFDQWLVHOLJLEOHIRUD/RFDO2SWLRQ'HYHORSPHQW3ODQ /RDQRU(FRQRPLF(QKDQFHPHQW/RDQWKHQDQGLQVXFKHYHQW&LW\ZLOODGYLVHDQGFRQVXOWZLWKWKH$SSOLFDQW LQWKHSUHSDUDWLRQE\WKH$SSOLFDQWIRUDFRPSOHWHVHWRI/RDQGRFXPHQWVWRJHWKHUZLWKVXSSRUWLQJH[KLELWVIRU WKHSXUSRVHRIPDNLQJDSSOLFDWLRQVIRUDQ/RFDO2SWLRQ'HYHORSPHQW3ODQ/RDQRU(FRQRPLF(QKDQFHPHQW/RDQ KHUHLQDIWHUUHIHUUHGWRDVWKH³/RDQ3DFNDJH´ 7KH/RDQ3DFNDJHVKDOOEHIRUWKHVROHEHQH¿WRIWKH$SSOLFDQW SURYLGHGKRZHYHUWKDWVXFK/RDQ3DFNDJHVKDOOEHXVHGE\WKH&LW\LQFRQQHFWLRQZLWKWKH$SSOLFDWLRQIRUD &LW\/RDQRQEHKDOIRIWKH$SSOLFDQWSURYLGHGKRZHYHUWKDWWKH/RDQ3DFNDJHPD\EHXVHGE\WKH$SSOLFDQWLQ VHHNLQJ¿QDQFLDODVVLVWDQFHRUJXDUDQWHHVIURPRWKHUJRYHUQPHQWDODJHQFLHVDQGRUSULYDWHOHQGHUV 3. $SSOLFDQWKHUHE\DFNQRZOHGJHVWKDWWKH$SSOLFDQWLVFKDUJHGZLWKWKHDFWXDOUHVSRQVLELOLW\RISUHSDULQJWKH/RDQ 3DFNDJHDQGWKDWWKH&LW\¶VVROHUHVSRQVLELOLW\LQFRQQHFWLRQZLWKWKHSUHSDUDWLRQRIWKH/RDQ3DFNDJHVKDOOEHWR FRQVXOWZLWKDQGDGYLVHWKH$SSOLFDQW7KH$SSOLFDQWIXUWKHUDFNQRZOHGJHVWKDWWKH$SSOLFDQWZLOOEHUHTXLUHGWR SURPSWO\DQGDFFXUDWHO\VXSSO\¿QDQFLDOLQIRUPDWLRQFRQFHUQLQJWKH3URMHFWWKHRSHUDWLRQRI3URMHFWWRJHWKHU ZLWKWKHPDQQHUPHWKRGDQGWHUPVRI¿QDQFLQJWKH3URMHFW$SSOLFDQWIXUWKHUVSHFL¿FDOO\DFNQRZOHGJHV DQGDJUHHVWKDWWKHREWDLQLQJRID/RFDO2SWLRQ'HYHORSPHQW3ODQ/RDQRU(FRQRPLF(QKDQFHPHQW/RDQRU DQ\RWKHU¿QDQFLQJLVGHSHQGHQWXSRQPDQ\IDFWRUVWKDWWKH&LW\FDQQRWFRQWUROLQFOXGLQJEXWQRWOLPLWHG to economic factors and the decisions of the City Council, accordingly, the City does not guarantee that the $SSOLFDQWZLOOREWDLQ¿QDQFLQJIRUWKH3URMHFW$SSOLFDQWKHUHE\FRYHQDQWVDQGDJUHHVWKDWWKH&LW\VKDOOQRW EHUHVSRQVLEOHLQDQ\PDQQHURUOLDEOHWRWKH$SSOLFDQWRUDQ\RWKHUSHUVRQLQWKHHYHQWWKDWWKH$SSOLFDQWLV XQDEOHWRREWDLQD/RFDO2SWLRQ'HYHORSPHQW3ODQ/RDQRU(FRQRPLF(QKDQFHPHQW/RDQIRUWKH3URMHFWRU DQ\RWKHUW\SHRI¿QDQFLQJIRUWKH3URMHFWZKHWKHUIURPWKH&LW\RUDQ\RWKHUJRYHUQPHQWDORUSXEOLFVRXUFHRU IURPDQ\SULYDWH¿QDQFLQJVRXUFHV$SSOLFDQWDOVRIXUWKHUFRYHQDQWVDQGDJUHHVWKDWWKH&LW\VKDOOQRWEHOLDEOH IRUDQ\RIWKHGHEWVRUREOLJDWLRQVLQFXUUHGLQDQGIRUWKHDVVLVWDQFHRIEHQH¿WRIWKH$SSOLFDQW$SSOLFDQWIXUWKHU DJUHHVWKDWWKH$SSOLFDQWZLOOKROGWKH&LW\KDUPOHVVDQGSD\DOOFRVWVDQGH[SHQVHVLQFOXGLQJDWWRUQH\¶VIHHV LQWKHHYHQWWKDWDQ\FODLPLQPDGHRUODZVXLWLV¿OHGE\RUDJDLQVWWKH&LW\DULVLQJRXWRIDQ\WUDQVDFWLRQZLWKRU DVVLVWDQFHWRWKH$SSOLFDQWZKLFKPD\LQDQ\ZD\EHFRQQHFWHGZLWKWKH$JUHHPHQW ,1:,71(66:+(5(2)WKHSDUWLHVKHUHWRKDYHH[HFXWHGFDXVHGWREHGXO\H[HFXWHGWKLV$JUHHPHQWDQG KDYHDɤ[HGRUFDXVHGWREHGXO\Dɤ[HGKHUHWRWKHUHVHDOVWKLVBBBBBBBBBBBGD\RIBBBBBBBBBBBBBBB 28th December 20_______. 20 $33/,&$17 %< Page 10 of 15 Member Agenda Item #5 Local Option Economic Development Loan Fund and Economic Enhancement Fund Application $SSOLFDWLRQLVDQ2ɤFLDO3XEOLF'RFXPHQW Part I A. Business Borrower Information Name of Business to receive assistance: 505 Main Street Group, LLC Address: 1110 N Skyline Drive Elkhorn, Ne 68022 ________________________ (City, State & ZIP) Representative Contact Information Name: Ryan Durant Email: ryan@rmdgroupllc.com Title: Member Phone: 402-981-5822 %XVLQHVV&ODUL¿FDWLRQ PDUNRQH ☐ Manufacturing ☐ Research & Development ☐ Warehousing & Distribution ☐ Administrative ManagemenW ☐ Service Headquarters Federal Tax ID # %XVLQHVV2UJDQL]DWLRQ PDUNRQH ☐ Proprietorship ☐ Partnership ☐ Corporation ☐ ■ Other Does the Company have a Parent or Subsidiaries? ☐ ■ Yes ☐ No If yes, identify name: RMDX, LLC Address: Ryan Durant & Matt Dougherty ________________________ Business Type ☐ Start-up (0-5 years old) ■ ☐ Buyout ☐ Existing If existing, how many years in Business? Page 11 of 15 Agenda Item #5 2ZQHUVKLS,GHQWL¿FDWLRQ/LVWDOORɤFHUVGLUHFWRUVSDUWQHUVRZQHUVFRRZQHUVDQGDOOVWDNHKROGHUVZLWKRU PRUHRIWKHVWRFN Name Title Ownership % Ryan Durant Member 50 Matt Dougherty Member 50 Employment Information 3HUVRQQHO )XOO7LPH(TXLYDOHQW)7(LVEDVHGXSRQKRXUVSHU\HDU Existing number of FTE Positions: FTE Positions to be created within _____months of Application Approval: If jobs would be lost without loan approval, total number of FTE jobs retained: What is the average wage for employees? 3OHDVHGHVFULEHDOOEHQH¿WVZKLFKWKHEXVLQHVVSURYLGHVWRHPSOR\HHV B. Project Information Use of Funds Total Project Cost Loan Funds Requested Total Funds /DQG$FTXLVLWLRQ Building Acquisition 300,000 Renovation 4,656,500 465,000 New Facility Construction Acquisition of Machinery/Equipment Acquisition of Furniture/Fixtures :RUNLQJ&DSLWDO ,QFOXGHV,QYHQWRU\ Other (Specify) 2,607,040 Total 7,563,540 465,000 Project Schedule: This budget includes the renovation of the 505 building with large budget items that address all the health, life, & safety for 28 apartments. It requires putting in an entirely new elevator and replacing over 130 windows. It also includes COVID related increases with labor, supplies and materials. The National Park Services HTC Part 1 and Part 2 have been approved. The project is scheduled to take 12 months and will lease up in the first 6 months with full stabilization in 24 months. Page 12 of 15 Agenda Item #5 C. Sources of Funds 1RWH3XEOLFVRXUFHVRI¿QDQFLQJUHTXLUHVWKHSDUWLFLSDWLRQRID%DQNDQGRUDQLQMHFWLRQRIHTXLW\ QRQGHEWIXQGV  Participating Lender Information: 1DPHRI/HQGLQJ,QVWLWXWLRQ Great Western Bank Contact Person: Kraig Williams Address: 9290 West Dodge St ______ Phone: 402-952-6044 (City, State & ZIP) /RDQ$PRXQW 3,858,000      /RDQ7HUP <UV  10 Interest Rate: 3.86% Variable: Fixed: YES Collateral Required: Yes Equity Required: Yes Equity Information: We are also getting both Federal & State Historic Tax Credits $PRXQW$YDLODEOHIURPEXVLQHVVRURZQHUVIRULQYHVWPHQW 400,000 Source of owner’s equity into project into the project: Cash Project Location: ☐ :LWKLQWKH&LW\/LPLWV )UHPRQW ☐ 2XWVLGHRI&LW\/LPLWVEXWZLWKLQWKH=RQLQJ-XULVGLFWLRQRI )UHPRQW ☐ Unincorporated Area (Dodge County) D. Attach the Following ,WHPVVKDOOEHFRQVLGHUHGFRQ¿GHQWLDO Brief Desription of the Business’ history: The owners of 505 Main Street Group, LLC have a combined experience of 40 years of development experience in both housing and historic rehabs with an total development cost of over $150 million. %ULHI'HVFULSWLRQRIWKHSURSRVHGSURMHFW+DVDQ\SDUWRIWKLVSURMHFWEHHQVWDUWHG" The plans have been completed to renovate the 505 building into a mixed use that includes 28 apartments which would be a mix of studios and 1 beds. We plan to renovate the 1st floor for commercial uses and the basement into a brewery. During the past 12 months there have been many challenges to getting this project moving forward including COVID, construction cost and historic tax credits losing value. Page 13 of 15 Agenda Item #5 Description of impact of project on Applicant and Community: The City had a downtown study completed and the 505 building was called "catalyst" to the revitalization of Historic Downtown. We believe our proposed use is the highest and best use for the building and the downtown area. +DYH\RXHYHUGHFODUHGEDQNUXSWF\" ☐ Yes ☐ No ,I\HVEDQNUXSWF\FKDSWHU     &DVH   'DWH $UHWKHUHDQ\XQVDWLV¿HGMXGJPHQWVDJDLQ\RX" ☐ Yes ☐ No Amount per month: To Whom: Are you a party to a lawsuit? Yes, Matt Dougherty Give details: All parties in lawsuit are negotiating for a settlement and anticipate the resolution to be in the next 60 days. Please contact Matt Dougherty for further details 402-659-2847. ☐ \HDUKLVWRULFDOEDODQFHVKHHWVDQGRSHUDWLQJVWDWHPHQWV&XUUHQWVWDWHPHQWVOHVVWKDQGD\VROG ([LVW- LQJEXVLQHVVHVRQO\ 3URYLGHWKHIROORZLQJDQGUHFRQFLOHWRFXUUHQWEDODQFHVKHHW ☐ Aging of Accounts Payable and Accounts Receivable ☐/LVWRIFXUUHQWREOLJDWLRQV ☐3HUVRQDO¿QDQFLDOVWDWHPHQWDQGUHVXPHVIRUHDFKSHUVRQRZQLQJRUPRUHRIWKHEXVLQHVV ☐&UHGLW5HSRUWIURP&UHGLW5HSRUWLQJ$JHQF\&RQWDFW\RXUEDQNIRUPRUHLQIRUPDWLRQ ☐0RQWKO\FDVKÀRZDQDO\VLVIRUWKHQH[WPRQWKVDQGIRUQHZEXVLQHVVHVPRQWKVEH\RQGWKHEUHDNHYHQ SRLQW ☐,QGHPQL¿FDWLRQ$JUHHPHQW ☐7D[UHWXUQVIRUWKHODVWWZR\HDUV 2QFHDOOGRFXPHQWVKDYHEHHQUHFHLYHGWKH&LW\RI)UHPRQWVWDɣZLOOUHYLHZWKHDSSOLFDWLRQLILWPHHWVWKH/RFDO 2SWLRQ(FRQRPLF'HYHORSPHQW3ODQ)XQGRU(FRQRPLF(QKDQFHPHQW/RDQ)XQGHOLJLELOLW\UHTXLUHPHQWV,IHOLJL- EOHDPHHWLQJZLOOEHVFKHGXOHGZLWK\RX 7KHDERYHLQIRUPDWLRQLVDFFXUDWHWRWKHEHVWRIP\NQRZOHGJHDQGEHOLHI7KHDERYHLQIRUPDWLRQLVSURYLGHGWR KHOS\RXHYDOXDWHWKHIHDVLELOLW\RIREWDLQLQJSXEOLF¿QDQFLDODVVLVWDQFH,XQGHUVWDQGWKDWSDJHVRIWKHDSSOLFD- WLRQDUHSXEOLFLQIRUPDWLRQDQGDUHVXEMHFWWRSXEOLFGLVFORVXUHGXULQJWKHDSSOLFDWLRQSURFHVV Signature Dated 12-28-20 Page 14 of 15 Agenda Item #5  Request for Protected Record Status %XVLQHVV&RQ¿GHQWLDOLW\&ODLP 1DPHDQGDGGUHVVRIEXVLQHVVDQGUHSUHVHQWDWLYHPDNLQJWKLVFRQ¿GHQWLDOLW\FODLP SOHDVHSULQWRUW\SH 505 Main Street Group,LLC Ryan Durant & Matt Dougherty I request the attached/enclosed information (record) provided to the City of Fremont or any of its agencies (divisions RUSURJUDPV EHFRQVLGHUHGFRQ¿GHQWLDODQGJLYHQSURWHFWHGVWDWXV 'HVFULSWLRQ RSWLRQDO RIWKHLQIRUPDWLRQ UHFRUG ZKLFKLVWREHFRYHGE\WKLVFRQ¿GHQWLDOLW\FODLPDQGZKLFK\RX EHOLHYHTXDOL¿HVIRUSURWHFWHGVWDWXV 7KHIROORZLQJUHDVRQVVXSSRUWWKLVFODLPRIEXVLQHVVFRQ¿GHQWLDOLW\3OHDVHFKHFNDOORIWKHIROORZLQJZKLFKDSSO\ ☐ The record provided is a trade secret ☐ 7KHUHFRUGLVFRPPHUFLDORUQRQLQGLYLGXDO¿QDQFLDOLQIRUPDWLRQDQGGLVFORVXUHRIWKHLQIRPUDWLRQFRXOG UHDVRQDEO\EHH[SHFWHGWRUHVXOWLQXQIDLUFRPSHWLWLYHLQMXU\WRWKHSURYLGHURIWKHLQIRUPDWLRQ ☐ The record is commercial or non-individual information and disclosure of the information could reasonable be expected to impair the ability of the City of Fremont, or its agencies, to obtain necessary information in the IXWXUH ☐ 7KHUHFRUGLVFRPPHUFLDORUQRQLQGLYLGXDO¿QDQFLDOLQIRUPDWLRQDQGWKHLQWHUHVWRIWKHSURYLGHULQSURKLELW- LQJDFFHVVWRWKHLQIRUPDWLRQLVJUHDWHUWKDQWKHLQWHUHVWRIWKHSXEOLFREWDLQLQJDFFHVV ☐ 7KHLQIRUPDWLRQZRXOGUHYHDOQHJRWLDWLRQVUHJDUGLQJDVVLVWDQFHRULQFHQWLYHVRɣHUHGE\RUUHTXHVWHGIURPWKH City of Fremont for the purpose of encouraging a person to expand or locate a business in Fremont, but only if disclosure would result in actual economic harm to the person or place the City of Fremont at a competitive GLVDGYDQWDJH127,&(5HFRUGVHYLGHQFLQJD¿QDOFRQWUDFWPD\QRWEHFODVVLIHGSURWHFWHGXQGHUWKLVVHFWLRQ 6WDWHPHQW DFRQFLVHZULWWHQVWDWHPHQWVXSSRUWLQJDEXVLQHVVFRQ¿GHQWLDOLW\FODLPLVUHTXLUHGXVHUHYHUVHVLGHRI WKLVVKHHWRUDWWDFKDGGLWLRQDOVKHHWVLIQHFHVVDU\ 127(&ODLPDQWVKDOOEHQRWL¿HGLIDUHFRUGFODLPHGWREHSURWHFWHGLVFODVVL¿HGSXEOLFRULIWKHGHWHUPLQDWLRQLV made that the record should be disclosed because the interest favoring access outweigh the interest favoring restric- WLRQRIDFFHVV5HFRUGVFODLPHGWREHSURWHFWHGXQGHUWKLVEXVLQHVVFRQ¿GHQWLDOLW\FODLPZLOOEHUHYLHZHGE\WKH&LW\ $WWRUQH\IRUWKH&LW\RI)UHPRQWIRU¿QDOGHWHUPLQDWLRQ7KH&LW\$WWRUQH\ZLOOQRWLI\DSSOLFDQWLIDQ\GRFXPHQWV ZRXOGEHGHHPHGSXEOLFUHFRUGV By Date 12-28-20 Page 15 of 15 Agenda Item #5