LRAC PKT 11-03-2014Federal Way
Agenda
CDBG LRAC Meeting
Hylebos Conference Room, City Hall
November 3, 2014
5:00 — 7:00 pm
1. Call to Order
Chair Evans
2. Public Comment
Chair Evans
3. Introductions
Chair Evans
a. LRAC member Ronald Chynoweth
4. Approval of August 14, 2014 minutes
Chair Evans
5. Committee Member Reports
Chair Evans
6. Universal Cartridge Loan Modification Request
Jeff Watson
7. Loan Applications Received
Jeff Watson
8. Loan Program Review
Jeff Watson
9. Other Issues
Chair Evans
10. Adjournment
Next regularly scheduled meeting:
January 21, 2015
5:00 - 7:00 PM
Hylebos Conference Room
CITY OF FEDERAL WAY
LOAN REVIEW ADVISORY COMMITTEE
MEETING SUMMARY
AUGUST 14, 2014
COMMITTEE MEMBERS PRESENT: Graham Evans, Chair; Lori DeVore; Keven
Dunn; Donald Bartlett; Mark Hutson.
COMMISSION MEMBERS ABSENT: Frank Spicer
STAFF PRESENT: Jeff Watson, Community Services Manager; Dee Dee Catalano,
CDBG /Human Services Coordinator.
GUESTS: None
CALL TO ORDER
The meeting was called to order at 5:30 p.m.
ROLL CALL
Dee Dee Catalano took the roll.
Jeff Watson introduced himself to the Committee as the new Community Services
Manager.
APPROVAL OF MINUTES
Lori DeVore moved to approve the March 25, 2014 meeting minutes. Keven Dunn
seconded the motion, which carried 4 — 0.
COMMITTEE MEMBER REPORTS
None.
RETREAT FOLLOW -UP
a) Committee member thoughts
Committee members discussed their impressions of the retreat. Keven Dunn, noting
that former Community & Economic Development Director Patrick Doherty had spoken
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at the retreat, asked if his departure would have an effect on the Committee. Jeff
Watson replied that the City has hired a new Economic Development Director, Tim
Johnson, who will be an asset to the City and the Loan Review Advisory Committee
(LRAC).
Keven Dunn asked about the status of the New Market Tax Credits (NMTC) and the
Section 108 Performing Arts & Conference Center (PACC) project. Jeff said that the
City's application for a Section 108 loan fund was approved by HUD on May 15, and the
funding agreement was received in mid -July. Staff is working with the National
Development Council on the NMTC effort and will soon be assisted by Tim Johnson,
who has many years of experience in this area.
Graham Evans said there was discussion at the retreat on how to attract more
applicants to the loan programs. One idea was to work with commercial lenders to get
referrals of loans that don't qualify at commercial banks. Another idea was to have
another "banker's breakfast" to advertise the program.
Jeff Watson agreed that the City must attract more applicants to the CDBG loan
programs. He plans to devote more time to this effort after the general fund grant review
process has been completed.
Graham Evans said that topic of attracting more applicants to the loan programs should
be on the agenda for the next LRAC meeting.
STAFF REPORTS
a) Universal Cartridge LLC Loan Payments
Jeff Watson reported that the Universal Cartridge loan is now technically in default
because the July payment has not yet been received. Charles Gathu, owner of
Universal Cartridge, has requested a loan modification to change the due date from the
first of the month to the fifteenth of the month to avoid a cash flow problem.
Committee members expressed concern that changing the loan due date may not be
sufficient if the business is struggling. They asked that Charles Gathu submit quarterly
statements and plans for how he will be able to make payments in the future if the loan
modification is granted.
Jeff will contact Mr. Gathu about obtaining additional information on the performance of
Universal Cartridge.
LOAN APPLICATIONS
Jeff Watson reported that he has received four loan applications. He is working with the
IT department to modify the online form that applicants initially submit so that more
pertinent information is included. He asked the Committee members about what initial
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information they would like applicants to submit before they go through the entire loan
application process in order to avoid wasting time and effort if their loan request does
not qualify for funding. Graham Evans suggested that applicants be required to work
with the Small Business Development Center (SBDC) at Highline Community College
and to draft a business plan before applying to the City.
Jeff reviewed the four loan applications he received. The Committee recommended that
the applicants be referred to the SBDC to receive guidance and create a business plan
before formally applying for a loan.
ADJOURNMENT
The meeting adjourned at 6:14 pm.
NEXT MEETING
October 15, 2014
5:30 — 7:30 pm
Hylebos Room
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