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HomeMy WebLinkAbout950330.tiffPUBLIC NOTICE AND NOTICE OF PUBLIC HEARING FOR POST -AWARD HEARING The Board of Commissioners for Weld County will conduct a public hearing at 9:00 a.m. on Monday, March 6, 1995, at 915 10th Street, First Floor Hearing Room, Greeley, Colorado. The purpose of the hearing is to allow citizens to review and comment on the performance of the Greeley/Weld Economic Development Action Partnership, Inc., dba Weld/Larimer Revolving Loan Fund, in carrying out the funding of a $100,000.00 inventory loan to Poulsen Ace Hardware, 151 South Oak Street, Eaton, Colorado, which was financed with federal Community Development Block Grant funds provided by the State of Colorado. Written comments are also welcome and must be received by March 6, 1995, at 9:00 a.m.; Attention: Clerk to the Board. Information and records regarding the above described project are available at the office of the Clerk to the Board, 915 10th Street, Third Floor, Greeley, Colorado, during regular office hours. Advance notice is requested. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO BY: DONALD D. WARDEN WELD COUNTY CLERK TO THE BOARD BY: Linda M. Dodge DEPUTY CLERK TO THE BOARD DATED: February 9, 1995 PUBLISHED: February 16, 1995, in the Windsor Beacon 950330 EIMLICIECOGILMIR I-�E IDaaniYIQ Ma ni The Board of Commissioners for Weld County will conduct a public hearing at 9:00 a.m. on Monday, March 6, 1995, at 91610th Street, First Floor Hearing , Room, Greeley, Colorado. The purpose of I the hearing is to allow citi- zens to review and comment on the performance of the GreeleyAWeld Economic Development Action Partnership. Inc., dba Weld/Larirner Revolving Loan Fund in carrying out w funding of a $100,099A0 inventory loan to !Worm Ace Hardware, 151 Seed, Oak Street, Eaton. Cobra, Mich was financed Yllh fed- eral Community Development Block Grant keld, provided by the ass of Colorado. 1Mebr comments are oleo mewing and must be remind by March 8, 1995, at 9:08 a.m.; Attention: Cl d. le the Board. Infomn9on and records regarding the above described prefect are awaabe at the office of the Clerk to the Board. 915 101h Sent, Third Floor, Greet', Colorado. during regular oleos hours. Advance norm S requested. BOARD OF COUNTY COM- MISSIONERS WELD COUNTY, COL- ORADO BY: DONALD D. WARDEN WELD COUNTY CLERK TO THE BOARD BY: Linda M. Dodge DEPUTY CLERK TO THE BOARD DATED: February 9. 1895 Published in Me Wialsor Seecen on February It, 1966. AFFIDAVIT OF PUBLICATION STATE OF COLORADO ss COUNTY OF WELD I, ROGER A. LIPKER, of said County of Weld, being duly sworn, say that I am publisher of WINDSOR BEACON a weekly newspaper having a general circulation in said County and State, published in the town of WINDSOR, in said County and State; and that the notice, of which the annexed is a true copy, has been published in said weekly for successive weeks, that the notice was published in the regular and entire issue of every number of the paper during the period and time of publication, and in the newspaper proper and not in a supplement, and that the first publication of said notice was in said paper bearing the date of th /&Z: day of ea -1,1._y , AD., 19 L and the last publication bearing the date of the day of A.D., 19 and that the said WINDSOR BEACON has been published continuously and uninterruptedly for the period of 5 consecutive weeks, in said County and State, prior to the date of first publication of said notice, and the same is a newspaper within the meaning of an Act to regulate printing of legal notices and advertisements, approved May 18, 1931, and all prior acts so far as in force. L, JJi�ISHER Subscribed and sworn to before me this /L t7' day of k�c«...L.; 19 u2`F // �h , NOTARY PUBLIC My commission expires 9, 950330 HEARING CERTIFICATION RE: POST -AWARD HEARING FOR PERFORMANCE OF GREELEY/WELD EDAP, INC., DBA WELD/LARIMER REVOLVING LOAN FUND - POULSEN ACE HARDWARE A public hearing was conducted on March 6, 1995, at 9:00 a.m., with the following present: Commissioner Dale K. Hall, Chairman Commissioner Barbara J. Kirkmeyer, Pro-Tem - EXCUSED Commissioner George E. Baxter Commissioner Constance L. Harbert Commissioner W. H. Webster Also present: Acting Clerk to the Board, Carol Harding County Attorney, Bruce Barker Director of Finance and Administration, Donald D. Warden The following business was transacted: I hereby certify that pursuant to a notice dated February 9, 1995, and duly published February 16, 1995, in the Windsor Beacon, a public hearing was conducted to consider the performance of Greeley/Weld EDAP, Inc., dba Weld/Larimer Revolving Loan Fund, in carrying out the funding of a CDBG loan to Poulsen Ace Hardware. Donald Warden, Director of Finance and Administration, made this a matter of record, and stated the grant of $100,000 was an inventory loan to Poulsen Ace Hardware, 151 South Oak Street, Eaton, Colorado. He stated the project is now complete and this hearing is for the purpose of obtaining citizen comments on the performance of duties in relation to said project. There was no public testimony given. Since no further action is required by the Board of County Commissioners, Chairman Hall closed the hearing. This Certification was approved on the 8th day of March, 1995. APPROVED: BOARD OF COUNTY COMMISSIONERS ATTEST: Weld Co ,pty Clerk to the Board BY. Deputy Cler TAPE #95-09 the Board Dale K. Hall, Chairman FXCL ISFn Barbara J. Kirkmey , Pro-Tem Georg€ E. Baxter FI0020 Constance L. Harbert A W. H. Webster 950330 FI0020 COLORADO January 20, 1995 The Honorable William Webster Chairman, Weld County Commissioners 915 10th Street Greeley, Colorado 80631 RE: CDBG Contract No. 94-960 in support of Paulsen Ace Hardware Office of Business Development 1625 Broadway, Suite 1710 Denver, Colorado 80202 (303) 892-3840 (303) 892-3848 FAX Roy Romer Governor Dear Chairman Webster: The purpose of this letter is to summarize the results of the monitoring visit completed as of September 7, 1994 by Alice K. Kotrlik of my staff. Since completing the monitoring visit, the Office of Business Development (OBD) has been working with the Revolving Loan Fund (RLF) on a "draft letter" basis to resolve the items discussed in this letter. Below is a summary of areas which were covered during the recent visit and the actions needed (in bold print), if any, to achieve full contract and program compliance. Eligibility of Activities and National Objectives (Module 1, Part A of the Monitoring Checklist) Citizen Participation The necessary public hearings were held after being adequately advertised [previous hearing published by the Weld/Larimer Revolving Loan Fund (RLF) for its portfolio funds and additional hearing published April 25, 1994]. It appears that a concerted effort has been made to keep the public apprised. Community Development Plan A copy of the required Community Development Plan was submitted which satisfied this requirement. Displacement No displacement has occurred as a result of this project. 950330 �.e; �i;/30ezicA January 20, 1995 The Honorable William Webster Page 2 of 5 Special Conditions of the Contract Questions pertaining to special condition requirements (Exhibit A, Scope of Services) were as follows: 1) OBD requested that a final lien search be completed to ensure that the RLF obtained the lien position as stated in the loan documentation (since prior liens had appeared on the previous lien search and were to be terminated). The RLF has satisfactorily completed this request. 2) The loan agreement was executed in the capacity of "co -owners" instead of the legal capacity of "general partners". The RLF has obtained a new signature page with both parties signing as partners. 3) The UCC filing was completed in the name of Poulsen Ace Hardware; however, the real estate was in the name of the general partners (individually). The RLF should verify with its attorney whether the Deed of Trust acts as the UCC filing for fixtures in Colorado or whether a separate UCC filing should be completed in the individuals name also. The RLF has filed a separate UCC to secure the fixtures. 4) The "faxed" assignment of the keyman life insurance did not include the complete agreement (back page missing). Additionally, the RLF needed to obtain an actual copy of the keyman life insurance policy to ensure that the information referenced on the assignment was correct and that the policy was for the required amount. The RLF has obtained a copy of the life insurance policy and has verified the requested information. 5) The final bank leveraging was for $440,000 with Farmers Bank (which bought out Colorado Industrial Bank) instead of the anticipated $400,000. OBD requested that the RLF verify the Company's ability to repay the increased amount of debt along with the reason for the increase. 950330 January 20, 1995 The Honorable William Webster Page 3 of 5 The RLF has satisfactorily completed this request. The documentation for owner's equity was unclear as to whether the contribution (land for the project site) was actually completed with equity or a combination of debt and equity. Additionally, the warranty deed in file pertaining to this equity did not have the legal description (Exhibit A) attached which is needed for verification purposes. The RLF has satisfactorily documented this request. 7) Quarterly site visits have not been conducted by the RLF although the RLF did conduct two site visits during the loan closing phase. This item is unresolvable. 8) Quarterly financial statements (typically defined as a Balance Sheet and Income Statement) and Inventory/Accounts Receivable lists were to be submitted to the RLF within thirty (30) days of the end of the fiscal quarter. This information for the March and June, 1994 quarters needed to be obtained. It should be noted that the RLF files did contain an Income Statement dated May, 1994. The RLF has obtained this information. Eligibility of Activities and National Objectives (Module 1, Parts B and C of the Monitoring Checklist) Eligibility of Activities and National Objectives The activities were determined to be eligible during the initial underwriting of the application. The application and initial analysis documented that it was reasonable to expect that low -to -moderate income persons would benefit as a result of the grant. The state's contract requires that eight (8) new, full-time jobs be created within two (2) years of the initial disbursement of CDBG funds (which should have been April, 1994 approximately) of which five (5) shall be held by low -to -moderate income persons. It is our understanding that the RLF anticipates an early contract close-out. The eight (8) income certifications in file were reviewed. The loan closed on March 11, 950330 January 20, 1995 The Honorable William Webster Page 4 of 5 1994. Three employees appear to have been hired prior to the loan closing date based on the income certifications. The RLF has documented that the three employees were hired on a temporary, part-time, and/or training basis prior to the loan closing and were moved to permanent jobs as a result of the loan closing. It is our understanding that these jobs meet the RLF's definition of a full-time equivalent position. Seven (7) of the eight (8) or eighty-eight percent (88%) of the created positions were filled by individuals qualifying as low - to -moderate income persons. Specific cost documentation was reviewed (invoices for inventory) and all costs appeared eligible. Public Facility/Construction Proiects (Module 2. Part A of the Monitoring Checklist) This section contains requirements which were not applicable to this project since the CDBG funds were utilized for working capital. Economic Development Projects (Module 2, Part B of the Monitoring Checklist) This section has been monitored by our office during the RLF portfolio monitoring visit completed within the last year. Per the RLF Manager, the systems and documentation generally have not changed; therefore, this section was only "sampled" during this visit. Loan payments are being made per the required amortization schedule (with the first two payments adjusted for actual cash disbursement dates and interest accrued). All required Quarterly Reports were submitted to OBD by the RLF in a satisfactory manner (up to the time that OBD began the monitoring/close-out phase for this contract). Limited Review -Financial Management(Module 3, Part A of the Monitoring Checklist) The financial information was well documented. Limited Review -Environmental Review (Module 3, Part B of the Monitoring Checklist) 950330 January 20, 1995 The Honorable William Webster Page 5 of 5 The initial environmental review documentation was evaluated by the Department of Local Affairs (due to an interim staff vacancy in our office) and was determined to be satisfactory. The environmental review record (maintained at the RLF as required) appeared complete. Limited Review -Civil Rights (Module 3, Part C of the Monitoring Checklist) This section has been monitored by our office during the RLF portfolio monitoring visit completed within the last year. Per the RLF Manager, there have been no material changes. Limited Review -Labor Standards (Module 3, Part D of the Monitoring Checklist) This section contains requirements which were not applicable to this project since the CDBG funds were utilized for working capital. Summary We would like to thank Jodi Hartmann and William (Bill) Argo for their assistance during our monitoring visit. In summary, we believe that the RLF has in the aggregate done a good job of documenting the program requirements and completing the required loan documentation for this project. We have accepted the RLF's monitoring response. The RLF should complete the Final Quarterly Reports, the Project Completion Report and the required public hearing. Please feel free to call me at (303) 892-3840 if you have questions or comments. Sinrely, aunq aime G. Gomez Director Business Development and Finance cc: Mr. William J. Argo Ms. Jodi Hartmann File 950330 Hello