HomeMy WebLinkAbout970909.tiffRESOLUTION
RE: APPROVE AMENDMENT TO WELD/LARIMER REVOLVING LOAN FUND CDBG
FOR PIEDMONT FARMS, INC., AND AUTHORIZE CHAIR TO SIGN
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with a CDBG (Community Development
Block Grant) Disclosure Report to amend the CDBG for Piedmont Farms, Inc., from the County
of Weld, State of Colorado, by and through the Board of County Commissioners of Weld
County, on behalf of the Weld/Larimer Revolving Loan Fund, to the Office of Business
Development, with terms and conditions being as stated in said disclosure report, and
WHEREAS, after review, the Board deems it advisable to approve said disclosure
report, a copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the CDBG (Community Development Block Grant) Disclosure
Report to amend the CDBG for Piedmont Farms, Inc., from the County of Weld, State of
Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the
Weld/Larimer Revolving Loan Fund, to the Office of Business Development be, and hereby is,
approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said disclosure report and any other necessary documents.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 7th day of May, A.D., 1997.
ty Clerk to the Board
eputy Cler f o the Board
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
EXCUSED DATE OF SIGNING
George E. Baxter, Chair
//i
tance L. Harbert,
Dale K. Hall
(AYF)
ro-T
970909
cc; Fl
FI0009
rottriii3O
vine
COLORADO
May 7, 1997
Mr. Jaime Gomez, Director
Finance and Job Training Programs
Office of Business Development
1625 Broadway, Suite 1710
Denver, CO 80202
RE: CDBG Contract #94-963
BOARD OF COUNTY COMMISSIONERS
PHONE (970) 356-4000, EXT.4200
FAX: (970) 352-0242
P.O. BOX 758
GREELEY, COLORADO 80632
Dear Mr. Gomez:
This letter is to request that the state approve an amendment to the above referenced CDBG
contract to provide an additional $357,000 in CDBG funds for the funding of a loan to Piedmont
Farms, Inc., a job retention project in rural Larimer County. A loan for $500,000 in operating funds
to Piedmont has been approved by the Weld/Larimer Revolving Loan Fund (RLF) and the state's
Financial Review Committee, conditional, in part, on the RLF receiving this additional CDBG
funding.
As you know, the current contract amount for business assistance, as amended, is $350,000, of
which $226,000 has been expended to date. The remaining balance of approximately $124,000
(plus program income on hand of approximately $19,000) will be used to complete the funding of
the Piedmont Farms loan.
Thank you in advance for your consideration of this request.
Sincerely,
BOARD OF COUNTY COMMISSIONERS
George E. Baxter, Chair
BOCC/cah
970909
CDBG DISCLOSURE REPORT
PART I —APPLICANT/GRANTEE INFORMATION
1. Applicant/grantee name, address and phone number.
Weld County
915 10th Street
Greeley, CO 80631
(970) 356-4000, extn. 4200
Federal employer identification number: 84-6000813
2. Indicate whether this report is: Initial Update X
3. Project Assisted/to be Assisted
a. Fiscal year: 1994
b. Entitlement Grant(s)
Competitive Grant h
c. Amount requested/received:
d. Program ;ncome to be used with (c) above:
e. Total of (c) and (d):
$ 707,000
$ 19,000
$ 726,000
PART II -THRESHOLD DETERMINATIONS
1. Is the amount listed at 3(e) above more than $200,000? Yes X No
2. Have you received or applied for other HUD assistance (through programs listed in instructions) which,
when added to 3(e) above amounts to more than $200,000? Yes X No
If the answer to either 1 or 2 of this Part is "Yes", then you must complete the remainder of this report.
If the answer to both 1 and 2 of this Part is "No", then you are only required to sign the following
certification and need not complete the remainder of this report.
I hereby certify that this information is true.
R
George Baxter, Chairman
Weld County Commissioners
(Chief Elected Official/Title)
,OSA7/619
Date
970909
PART III - OTHER GOVERNMENT ASSISTANCE PROVIDED/APPLIED FOR
1. Provide the requested information for any other Federal, State and/or local governmental assistance,
on hand or applied for, that will be used in conjunction with the CDBG grant. (See instructions)
Name and Address of Agency Providing
or to Provide Assistance
Type of
Program
Assistance
Amount Requested or
Provided
Greeley/Weld Economic Development
Action Parternship, Inc. (EDAP)
822 7th Street, Suite 550
Greeley, Colorado 80631
Economic
Development
Program Admin. &
Technical Assistance
$30,000
970929
PART IV - INTERESTED PARTIES
Alphabetical List of All Persons
With a Reportable Financial
Interest in the Project
Social Security
or
Employer ID #
Type of Participation
in Project
Financial
Interest in
Project ($ & %)
Fred Weis, President
84-1182594
Rec'd CDBG Business Assist.
$75,000 (20%)
Diane Weis, Secretary
Hy -Q Enterprises, Inc.
Loan (10/28/95)
Arvid -F. Peterson
Annely C. Peterson
d/b/a Wayside Inn Restaurant
84-0620972
Rec'd CDBG Business Assist.
Loan (5/10/95)
$100,000 (26%)
Daniel A. Robson
Sharon Robson
d/b/a G&S Contractor's Supply
84-0777496
Rec'd CDBG Business Assist.
Loan (5/7/96)
$60,000 (8%)
Lori L. Hays
d/b/a River Road Book & Brew
523-78-2042
Rec'd CDBG Business Assist.
Loan (8/96)
$41,000 (35%)
Lewis O. Grant, President
Patricia S. Grant, Secretary
Andrew L. Grant, Vice Pres.
d/b/a Piedmont Farms, Inc.
84-0704625
To receive CDBG Business
Assist. Loan (5/97)
$500,000 (50%)
970939
PART V - EXPECTED SOURCES AND USES OF FUNDS
This Part requires that you identify the sources and uses of all assistance, including CDBG, that have been or
may be used in the Project.
Source
Use
CDBG Grant
CDBG Grant
Greeley/Weld Economic
Development Action
Partnership, Inc. (EDAP)
Unrestricted Program Income
Business assistance to small businesses creating or retaining
jobs benefiting low/mod persons in rural areas of Weld and
Larimer Counties.
Program administration
Program administration & technical assistance
Program administration
PART VI — CERTIFICATION
I hereby certify that the information provided in this disclosure is true and correct and I am aware that any false
information provided or lack of information knowingly made or omitted may subject me to civil or criminal
penalties under Section 1001 of Title 18 of the United States Code. In addition, I am aware that if I knowingly
and materially violate any required disclosure of information, including intentional nondisclosure, I am subject
to a civil money penalty not to exceed $10,000 for each violation.
2C1 _
/Georgxter, Chairman
Weld County Commissioners
(Chief Elected OfficiaL/Title)
05/oily
Date
9709?9
MAY -05-1997 15:34
EDRP P.01
0i �C/1nrnCrAEVdLVING LOAN FUND
A fund aSmieintrafey the Gredey/WehfTiam!mit lkw6,pmn.t titian •Jlemer ip, Inc./EDAM .
822 7th Street, Suite 550 • Greeley, Colorado 80631 • (970) 356-4565 • FAX (970) 352-2436
FAX MEMO
TO: Don Warden
FROM: Jodi Hartmann
DATE: 5/5/97
RE: CDBG Contract Amendment for Piedmont Farms loan
Following is the basic language I need incorporated into a letter on County
stationery requesting the amendment of our contract for approval at this
Wednesday's Commissioners' meeting. It would also be helpful if the
Commissioners could approve allowing George to sign the actual Amendment
when it arrives (probably Thursday) without having to wait for next Monday's
Commissioner meeting. Time is of the essence on this deal and we're trying to
expedite everything through the process.
Thanks for your help!
Post -It' Fax Note 7671
Date
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To Wa hK
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970919
MAY -05-1997 15:34
EDAP P.02
May 7, 1997
Mr. Jaime Gomez, Director
Finance & Job Training Programs
Office of Business Development
1625 Broadway, Suite 1710
Denver, CO 80202
Re: CDBG Contract #94-963
Dear Mr. Gomez,
This letter is to request that the state approve an amendment to the above
referenced CDBG contract to provide an additional $357,000 in CDBG funds
for the funding of a loan to Piedmont Farms, Inc., a job retention project in
rural Larimer County. A loan for $500,000 in operating fiords to Piedmont has
been approved by the Weld/Larimer Revolving Loan Fund (RLF) and the
state's Financial Review Committee, conditional, in part, on the RLF receiving
this additional CDBG funding.
As you know, the current contract amount for business assistance, as
amended, is $350,000, of which, $226,000 has been expended to date. The
remaining balance of approx. $124,000 (plus program income on hand of
approx. $19,000) will be used to complete the funding of the Piedmont Farms
loam
Thank you in advance for your consideration of this request.
Sincerely,
George Baxter, Chairman
Weld County Commissioners
970939
TOTAL P.02
COLORADO
May 8, 1997
The Honorable George E. Baxter
Chair, Weld County Commissioners
915 - 10th Street
Greeley, Colorado 80631
Office Of Business Development
1625 Broadway, Suite 1710
Denver, Colorado 80202
(303) 892-3840
(303) 892-3848 fax
1-800-659-2656 TDD
Roy R. Romer
Governor
Re: Second Contract Amendment to Weld County Revolving Loan Fund CDBG Contract
#94-963
Dear Chairman Baxter:
It is my pleasure to inform you that the Governor's Financial Review Committee ("FRC")
has approved a supplemental Community Development Block Grant ("CDBG") award in
the amount of $357,000.00 to be utilized by the Weld/Larimer County Revolving Loan
Fund specifically for a loan to Piedmont Farms, Inc. under the terms and conditions
contained in the approval letter attached hereto. At the time of contract close-out, all
program income from this Contract shall be retained by the Weld/Larimer Revolving Loan
Fund for its continuing operations.
Enclosed is the Second Contract Amendment for your review. If it meets with your
approval, please sign all four contracts and have each amendment attested by the County
Clerk or the person equivalent to that position.
Please return all four contracts with original signatures to Karen Thorson, of my staff, so
that the contracts may be forwarded to DOLA for processing. Please do not date the
contract.
No expenses incurred before the contract amendment is fully executed by all parties will
be reimbursed by the state. The release of funds process involves a thorough review of
the project's possible environmental impact and compliance with other federal regulations.
970909
The Honorable Baxter
May 8, 1997
Page 2
Please call me at (303) 892-3840 if you have any questions or concerns. We look forward
to working with you and the RLF to complete this contract.
Sincerely,
dline
Jaime G. Gomez, Direct
Finance and Business
velopment Programs
Enclosures (Piedmont Farms, Inc. approval letter)
(4 original contracts)
cc: Senator Tom Norton, President of the Senate (without enclosures)
Senator Stan Matsunaka (without enclosures)
Senator Peggy Reeves (without enclosures)
Representative Bob Bacon (without enclosures)
Representative Steve Johnson (without enclosures)
Representative William G. "Bill" Kaufman (without enclosures)
Representative David T. "Dave" Owen (without enclosures)
Representative Steve Tool (without enclosures)
Representative Tambor Williams (without enclosures)
Larimer County Commissioners
Jodi Hartmann, RLF Administrator (with copy of the complete contract)
Bill Timmermeyer, DOLA (without enclosures)
Bonnie Kugler, DOLA (without enclosures)
Mary Cornish, DOLA (without enclosures)
File
970909
CDBG #94-963
SECOND AMENDMENT
CONTRACT
DEPARTMENT OR AGENCY
NAA
CONTRACT ROUTING NUMBER
THIS CONTRACT, made this day of , 1997, by and between the State of
Colorado for the use and benefit of the Department of Local Affairs. 1313 Sherman Street, Denver. Colorado 80203
hereinafter referred to as the State, and Weld County. 915 10th Street. Greeley. Colorado 80631, hereinafter referred
to as the Contractor,
WHEREAS, authority exists in the Law and Funds have been budgeted, appropriated and otherwise made
available and a sufficient unencumbered balance thereof remains available for payment in Fund Number 100 ,
Appropriation Code Number 124 , Org. Unit FDC0 , GBL _, Contract Encumbrance Number C854963; and
WHEREAS, required approval, clearance and coordination has been accomplished from and with appropriate
agencies; and
WHEREAS, the State of Colorado and the Contractor have previously entered into a Contract dated July 14,
1994, Statewide Contract Amendment and Clarification dated March 22, 1995, First Contract Amendment dated April
3, 1995, Extension Letter dated August 17, 1995, Second Statewide Contract Amendment dated August 17, 1995,
Microenterprise Approval Letter dated November 11, 1996, hereinafter collectively referred to as the Original Contract;
and
WHEREAS$re parties have determined it to be appropriate to approve a budget modification of CDBG funds
totaling Three Hundred Fifty Seven Thousand and No/00 Dollars ($357,000.00) in consideration of the Weld/Larimer
RevoMng Loan Fund providing funding to Piedmont Farms, Inc. under the terms and conditions listed in the letter dated
May 8, 1997 and attached hereto as Exhibit C; and
WHEREASthe parties hereto now deem it necessary and desirable to amend the Original Contract to reflect
these changes in the Budget.
NOW, THEREFORE, the Original Contract is hereby amended as follows:
(Revised language will appear in bold type face.)
1. Specific Provision 11, Page 5 of 18 Pages of the Original Contract shall be amended to read as follows:
11. Compensation and Method of Payment. The State agrees to pay to the Contractor, in consideration for
the work and services to be performed, a total amount not to exceed Seven Hundred Thirty Two Thousand
Dollars (S732,000). The method and time of payment shall be in accordance with the "Payment Method" set
forth herein.
2. Specific Provision 1.b.1. on Page 3 of 6 pages of Exhibit A of the Original Contract shall be amended to read
as follows:
1. The CDBG contribution to the Project, exclusive of program income, shall not exceed Seven Hundred
Thirty Two Thousand Dollars ($732,000).
3. Specific Provision 1.b.2. on Page 3 of 6 pages of Exhibit A of the original Contract shall be amended to read
as follows:
2. Contractor shall re required to seek leveraged funds provided by participating banks and investors, but
these leveraged funds shall not be considered matching funds subject to federal audit requirements.
Unless modification is authorized in writing by the state's Office of Business Development, the Contractor
will be responsible for ensuring that at least $1,182,500 from the participating banks, agencies, and
Page 1 of 4 Pages
970909
investors are committed to this Project during the term of this Contract. In addition, Contractor and other
sources shall inject a minimum contribution of $35,000 for the administration of the RLF.
4. Specific Provision 1.b.4. on Page 3 of 6 pages of Exhibit A of the original Contract shall be amended to read
as follows:
4. The Contractor commits that at least sixty-one (61) full-time permanent jobs will be directly created or
retained through the provision of CDBG funds. The Contractor shall make all reasonable efforts to obtain
a goal that at leastthirtyone (31) full-time permanent positions of all jobs created are filled by low- and
moderate -income persons. At least fifty-one percent (51%) of jobs created or retained by each borrower
must be filled by low- and moderate -income persons.
5. Specific Provisions 3.a. on Page 4 of 6 pages and 3.b. on Page 5 of 6 pages of Exhibit A of the Original Contract
shall be amended to read as follows:
3. Budget
a. REVENUE
Community Development Bloc Grant Funds
Contractor/Local Injection (a minimum of)
Other Leveraged Funds (a minimum of).
TOTAL
b. EXPENDITURES
$732,000
35,000
1.182.500
$1,949,500
State Other
Line Item Total CDBG Funds Sources
RLF Assistance to $1,889,500 $707,000 $1,182,500 Bank,
Private Business Investors,
Other Lenders
Administration* 60,000 25,000 35,000 Contractor
Total $1,949,500 $732,000 $1,217,520
*The maximum of program income applied toward administrative operation costs shall not exceed sixteen
percent (16%) of the [original contract award plus program income earned to date].
This Amendment shall not be deemed valid until it shall have been approved by the Controller of the Sate of
Colorado or such assistant as he may designate.
All other terms of the Original Contract shall remain in full force and effect.
[THIS SPACE INTENTIONALY LEFT BLANK.]
Page 2 of 4 Pages
970999
SPECIAL PROVISIONS
CONTROLLER'S APPROVAL
1. This contract shall not be deemed valid until it shall have been approved by the Controller of the State of Colorado or such assistant as he may designate. This
provision is applicable to any contract involving the payment of money by the State.
FUND AVAILABILITY
2. Financial obligations of the State of Colorado payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted,
and otherwise made available.
BOND REQUIREMENT
3. If this contract involves the payment of more than fifty thousand dollars for the construction, erection, repair, maintenance, or improvement of any building,
road, bridge, viaduct, tunnel, excavation or other public work for this State, the contractor shall, before entering upon the performance of any such work included
in this contract, duly execute and deliver to the State official who will sign the contract, a good and sufficient bond or other acceptable surety to be approved by
said official in a penal sum not less than one-half of the total amount payable by the terms of this contract. Such bond shall be duly executed by a qualified corporate
surety conditioned upon the faithful performance of the contract and in addition, shall provide that if the contractor or his subcontractors fail to duly pay for any
labor, materials, team hire, sustenance, provisions, provendor or other supplies used or consumed by such contractor or his subcontractor in performance of the work
contracted to be done or fails to pay any person who supplies rental machinery, tools, or equipment in the prosecution of the work the surety will pay the same in
an amount not exceeding the sum specified in the bond, together with interest at the rate of eight per cent per annum. Unless such bond is executed, delivered and
filed, no claim in favor of the contractor arising under such contract shall be audited, allowed or paid. A certified or cashier's check or a bank money order payable
to the Treasurer of the State of Colorado may he accepted in lieu of a bond. This provision is in compliance with CRS 38-26-106.
INDEMNIFICATION
4. To the extent authorized by law. the contractor shall indemnify, save, and hold harmless the State, its employees and agents. against any and all claims.
damages, liability and court awards including costs. expenses, and attorney fees incurred as a result of any act or omission by the contractor. or its employees.
agents. subcontractors, or assignees pursuant to the terms of this contract.
DISCRIMINATION AND AFFIRMATIVE ACTION
5. The contractor agrees to comply with the letter and spirit of the Colorado Antidiscrimination Act of 1957, as amended, and other applicable law respecting
discrimination and unfair employment practices (CRS 24-34-402), and as required by Executive Order, Equal Opportunity and Affirmative Action, dated April 16.
1975. Pursuant thereto, the following provisions shall he contained in all State contracts or sub -contracts.
During the performance of this contract. the contractor agrees as follows:
(a) The contractor will not discriminate against any employee or applicant for employment because of race, creed, color, national origin, sex,
marital status, religion, ancestry. mental or physical handicap, or age. The contractor will take affirmative action to insure that applicants are employed, and that
employees are treated during employment, without regard to the above mentioned characteristics. Such action shall include, but not be limited to the following:
employment upgrading, demotion, or transfer, recruitment or recruitment advertisings; lay-offs or terminations; rates of pay or other forms of compensation; and
selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment.
notices to be provided by the contracting officer setting forth provisions of this non-discrimination clause.
(b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will
receive consideration for employment without regard to race, creed, color, national origin, sex, marital status, religion. ancestry, mental or physical handicap.
or age.
(c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or
understanding, notice to be provided by the contracting officer, advising the labor union or workers' representative of the contractor- s commitment under the
Executive Order, Equal Opportunity and Affirmative Action, dated April 16, 1975, and of the rules, regulations, and relevant Orders of the Governor.
(d) The contractor and labor unions will furnish all information and reports required by Executive Order, Equal Opportunity and Affirmative Action of April
16, 1975, and by the rules, regulations'and Orders of the Governor, or pursuant thereto, and will permit access to his books, records, and accounts by the
contracting agency and the office of the Governor or his designee for purposes of investigation to ascertain compliance with such rules, regulations and orders.
(e) A labor organization will not exclude any individual otherwise qualified from full membership rights in such labor organization, or expel any such individual
from membership in such labor organization or discriminate against any of its members in the full enjoyment of work opportunity because of race, creed, color.
sex, national origin, or ancestry.
(0 A labor organization, or the employees or members thereof will not aid, abet, incite, compel or coerce the doing of any act defined in this contract to be
discriminatory or obstruct or prevent any person from complying with the provisions of this contractor any order issued thereunder; or attempt, either directly
or indirectly, to commit any act defined in this contract to be discriminatory.
Form 6 -AC -02B
Revised 1/93
395-53-01-1022
page of 4 pages
970909
(g) In the event of the contractor's non-compliance with the non-discrimination clauses of this contract or with any of such rules, regulations, or orders,
this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further State contracts in
accordance with procedures, authorized in Executive Order, Equal Opportunity and Affirmative Action of April 16, 1975 and the rules, regulations, or
orders promulgated in accordance therewith, and such other sanctions as may be imposed and remedies as may be invoked as provided in Executive Order,
Equal Opportunity and Affirmative Action of April 16, 1975, or by rules, regulations, or orders promulgated in accordance therewith, or as otherwise
provided by law_
(h) The contractor will include the provisions of paragraphs (a) through (h) in every sub -contract and subcontractor purchase order unless exempted by
rules, regulations, or orders issued pursuant to Executive Order, Equal Opportunity and Affirmative Action of April 16, 1975, so that such provisions will
be binding upon each subcontractor or vendor. The contractor will take such action with respect to any sub -contracting or purchase order as the contracting
agency may direct, as a means of enforcing such provisions, including sanctions for non-compliance; provided, however, that in the event the contractor
becomes involved in, or is threatened with, litigation, with the subcontractor or vendor as a result of such direction by the contracting agency, the contractot
may request the State of Colorado to enter into such litigation to protect the interest of the State of Colorado.
COLORADO LABOR PREFERENCE
6a. Provisions of CRS 8-17-101 & 102 for preference of Colorado labor arc applicable to this contract tf public works w idun the Slate arc a nderrucn hernia.
arc financed in whole or in part by State funds-
h. When a construction contract for a public project is to be awarded to a bidder, a resident bidder shall be allowed a preference against a non'restdeni bidder from
a state or foreign country equal to the preference given or required by the state or foreign country in which the non-resident bidder is a residers. If it is determined bb
the officer responsible for awarding the bid that compliance with this subsection .06 may cause denial of federal funds which would otherwise hr as tillable or would
otherwise be inconsistent with requirements of Federal law, this subsection shall he suspended, but only to the extent necccsary to prevent dental rtt Rte mime,.
tat ht
eliminate the inconsistency with Federal requirements (CRS 8-19-101 and 102)
GENERAL
7. The laws of the State of Colorado and rules and regulations issued pursuant thereto shall be applied in the interpretation. execution. and anion. aof :hr
contract. Any provision of this contract whether or not incorporated herein by reference which provides for arbitration by any extra -judicial h•d, of pct,.
is otherwise in conflict with said laws, rules. and regulations shall he considered null and void. Nothing contained in any pro. ts on incorpobilcd t 'Octant.,
.,
which purports to negate this or any other special provision in whole or in part shall be valid or enforceable or available in any action al law whether v ot. ottnnlaint
defence, or otherwise. Any provision rendered null and void by the operation of this provision will not invalidate the remainder of this ..a, I Itle C,10111 :Lit the
contract is capable of execution.
8. At all times during the performance of this contract, the Contractor shall strictly adhere to all applicable federal and state laws. rules, and it gut aeon, ilia; hoc
been or may hereafter be established.
9. The signatories aver that they are familiar with CRS 18-8-301, et. seq.. (Bribery and Corrupt Influences) and CRS I8-8 401. et. seq.. (Abuse of Public (attics t.
and that no violation of such provisions is present.
10. The signatories aver that to their knowledge, no state employee has any personal or beneficial interest whatsoever in the ccrvme or property described bet cm
IN WITNESS WHEREOF, the parties hereto have executed this Contract on the day first above written_
Contractor:
(Full f9al Name) Weld County
Constance L. Harbert
Position (Title)
Chairman Fro-Tem
Social Security Number or Federal I.D. Number
If Corporation:)
Attest (Seal)
By
Corporate Secretary, or Equi.alent. Town/City/County Clerk
ATTORNEY GENERAL.
By
Form 6 -AC -02C
Revised 1/93
395-53-01-1030
Page
STATE OF COLORADO
ROY ROMER, GOVERNOR
By
•5 EXECUTIVE DIRECTOR
DEPARTMENT
OF
APPROVALS
CONTROLLER
By
4 which is the last of 4 pages
•See instructions on reverse side.
970999
EXHIBIT C
Piedmont Farms, Inc.
Appropriate Determination Approval Letter
970909
aaaa
COLORADO
May 8, 1997
Office of Business Development
1625 Broadway, Suite 1710
Denver, Colorado 80202
(303) 892-3840
(303) 892-3848 fax
1-800-659-2656 TDD
Roy R. Romer
Governor
Jodi Hartmann, RLF Administrator
Weld/Larimer Revolving Loan Fund
822 - 7th Street, Suite 550
Greeley, Colorado 80631
Re: Appropriate Determination Approval for Piedmont Farms. Inc. (the ComvanW
CDBG Contract #94-963
Dear Jodi:
I am pleased to inform you that the Governor's Financial Review Committee ("FRC") has
approved the Weld/Larimer County Revolving Loan Fund's ("RLF") request for an increase
in capitalization to fund the above -referenced project. Specifically, the FRC has approved
an increase of $357,000 to the RLF's current Community Development Block Grant
contract and has conditionally approved a request to fund a permanent working capital
loan in the amount of $500,000 to Piedmont Farms, Inc. The Piedmont Farms loan was
approved for a variety of reasons including the identified strengths of the project and the
strong support of the local community, the RLF loan committee, and the local RLF staff.
The project's underwriting concerns were clearly identified and recognized by RLF staff
and have been noted by OBD and the Financial Review Committee in their review of the
information submitted. In making its decision, the FRC clearly recognized the inherent
risks associated with this project, particularly with respect to the Company's current
financial position. However, the Committee voted to support the local RLF's decision
based on the positive economic impact that will result from assisting such an important
contributor to Colorado's agricultural industry. The public benefit of retaining employment
opportunities in Wellington was also a significant mitigating factor. The acceptance of
organic products in the marketplace, secondary benefits of the continuing operations of
the Company, and management's strong experience in the field were also notable
strengths of the project.
The FRC's approval of this loan is contingent on several items, including successfully
executing a Second Contract Amendment which will provide $357,000 in additional CDBG
capitalization which will allow the RLF to fund the $500,000 loan request by Piedmont
Farms. The FRC's approval is also contingent on the Cooperative Finance Association
providing a written commitment to provide Piedmont Farms with a $500,000 seasonal line
970909
Jodi Hartmann
May 8, 1997
Page 2
of credit. The RLF must provide evidence that the CFA loan has been dosed prior to the
disbursal of any CDBG funds, and ensure that disbursal of CFA and CDBG funds occurs
on a pro -rata basis. The loan to Piedmont Farms is conditionally approved as stated in
the Appropriate Determination submitted by the RLF on May 22, 1997 and under the terms
and conditions stated below:
1. Terms
• $500,000 Loan
5 year complete amortization period and term
• New York Prime interest rate as published in the Wall Street Journal at the
time of loan commitment (8.5% Fixed Rate)
Payments beginning September 1, 1997, with final structure of payment
schedule to be determined by mutual consent (as stated in section 4)
Commitment by the Company to retain 24 full-time positions, of which at
least 51% shall be held by low -to -moderate income persons. Note: The RLF
is responsible for receiving a letter from the Company indicating that the 24
full-time positions that are being retained would be lost but for the CDBG
assistance provided by the RLF.
2. Collateral
Junior lien on Crops, Inventory, Equipment, Accounts Receivable and
Agricultural Real Estate in Wellington, Colorado.
Unconditional Personal Guarantees from Lewis Grant, Patricia Grant, and
Andrew Grant.
Complete collateral documentation shall be obtained prior to the
disbursement of RLF funds. Standard credit and collateral documentation
shall be executed as necessary to perfect the above -referenced loan
conditions.
3. Disbursement
$500,000 for Working Capital as needed. The 1996 Guidebook for Direct
Economic Development Projects and Revolving Loan Funds requires that all
funds disbursed for working capital be expended within thirty (30) days of
receipt by the Borrower. Loan documents must recognize this provision and
the RLF shall not disburse more than thirty (30) days of working capital in any
single draw. All funds disbursed to the Borrower shall be held in a non -interest
970999
Jodi Hartmann
May 8, 1997
Page 3
bearing account. The actual costs must be itemized and supported by
appropriate information such as the invoices, receipts, etc. This supporting
documentation should be held in the RLF file and made available to OBD
during its on -site monitoring visit.
4. Other
The following additional requirements apply:
Copies of documentation for all of the Cooperative Finance Association
loans (both existing and new) shall be obtained prior to disbursement of any
CDBG funds. Documentation of these loans shall be held in the files of the
Revolving Loan Fund.
The Company's Plan for Reorganization in Bankruptcy shall be accepted by
the Bankruptcy Court and secured creditors prior to disbursement of any
CDBG funds.
The Revolving Loan Fund shall obtain all Income Certification Forms from
the 24 retained employees and verification that a minimum of 51% of the
retained employees are low -to -moderate income personsprior to closing.
All loan documents from the Revolving Loan Fund shall be reviewed by Rod
Wailes, Agricultural Lender, prior to closing. Mr. Wailes must review and
approve the structure of the RLF's loan to ensure that the terms and
conditions of the credit reflect safe and sound lending practices.
Evidence of all insurance coverage typical for agricultural production and
processing naming the Revolving Loan Fund as a less payee.
Evidence that all real estate and personal property taxes have been paid.
A complete list of all equipment, furniture, fixtures, inventory and accounts
receivable to be provided to the Revolving Loan Fund prior to disbursement
of funds.
The Revolving Loan Fund's attorney must review and approve the letter
dated April 30, 1997 that was sent to the RLF by Gregory R. Dutson.
970999
Jodi Hartmann
May 8, 1997
Page 4
The Company must be in compliance with all terms and conditions contained
in the April 7, 1997 commitment letter from the Weld/Larimer RLF to
Piedmont Farms, Inc., prior to closing.
Submittal of the Davis -Bacon exemption checklist to our office prior to the
disbursement of funds.
Submittal of Environmental Review Exemption and clearance by OBD office
prior to the disbursement of funds.
Loan condition requiring RLF obtainment of financial statements (Balance
Sheet and Income Statement) as required in the state's contract or if not
required in the state's contract, then semi-annually at a minimum (monthly
statements are recommended during the initial year of operation)
The Colorado Office of Business Development is pleased to assist the Weld/Larimer RLF
in furthering its economic development efforts and is happy to be participating in this
project. The State recognizes the importance of the agricultural industry in Colorado and
is pleased that the RLF is willing to support this important industry with financial assistance
from the local level.
If you have any questions about the terms and conditions of this approval, please feel free
to call me at (303) 892-3840.
atinte
ime G. Gomez, Director
nance and Business Development Programs
cc: Weld County
Larimer County
File
970909
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