09271993 Regular Meeting - Laserfiche WebLink

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72 Regular Meeting September 27, 1993 Page 2 stated the local match for the incubator project is $347,000.00, which includes cash and in-kind services. Lynn Brooks stated funds could be used for the purchase of a building, renovation or building of a new building, and if the city committed a building to the incubator project, it would have to be used for a minimum period of five years and the loan funds could be used for renovation. Ms. Fruit advised a minimum of approximately 20,000 square feet would be needed (Mr. Guerra present at this time - 8:34 p.m.). The incubator contract period would be for two years and the project for a minimum of five years. Mr. Ronson stated no funding is available in gap financing in amounts less than $50,000.00. Mayor Morris stated she wants funds available to assist in loans to businesses and wants collateral to be included in loan funding. Staff advised the revolving loan funds provide gap funding, which banks do not fund and are considered high risk loans. The City Council then considered the revolving loan fund request of J & W Donuts in the amount of $12,500.00. Mr. Spencer was asked if he had ever been in business in San Marcos previously. Mr. Spencer advised he had been and experienced difficulties when he was advised he needed to provide a restroom facility he was unaware he needed to have. Mr. Hart moved for approval of loan funding in the amount of $12,500.00 to J & W Donuts and Mr. Moore seconded the motion, which passed unanimously. The city Council then considered the revolving loan fund request of proseed (USA), Inc. in the amount of $150,000.00. Mr. Moore moved for approval of loan funding to Proseed (USA), Inc. contingent upon changing the amount to a cap of $75,000.00 and Mr. Plummer seconded the motion. On roll call the following vote was recorded: AYE: Moore, Mooney, Hart, Cox, Plummer. NAY: Morris, Guerra. ' ABSTAIN: None. Mr. Hart moved to reconsider the funding motion on the request from Pro seed (USA), Inc. and Mr. Guerra seconded the motion, which passed unanimously. Mayor Morris expressed concern that less money might hamper proseed's ability for growth. Mayor Morris then moved to approve funding to Proseed (USA), Inc. with the latitude to extend the amount above $75,000.00 to what is needed, but not to exceed a cap of $150,000.00. and Mr. Guerra seconded the motion. On roll call the following vote was recorded: AYE: Morris, Guerra. NAY: Moore, Mooney, Hart, Cox, Plummer. ABSTAIN: None. The motion failed. Mr. Guerra moved to approve funding to Proseed (USA), Inc. in the amount of $150,000.00 and Mayor Morris seconded the motion. On roll call the following vote was recorded: AYE: Morris, Guerra. NAY: Moore, Mooney, Hart, Cox, Plummer. ABSTAIN: None. The motion failed. Mr. Moore then moved to approve funding to Proseed (USA), Inc. in the amount of $75,000.00 and Mr. Plummer seconded the motion, which passed unanimously.