HomeMy WebLinkAbout~Master - Revolving Loan Fund Contract with RocketChips, Inc. RESOLUTION NO. 00-134
RESOLUTION APPROVING CITY OF AMES'
REVOLVING LOAN FUND CONTRACT
WITH ROCKETCHIPS, INC., IN THE
AMOUNT OF$5,000
FOR THE CITY OF AMES,IOWA
WHEREAS, RocketChips, Inc.,has been approved for$20,000 in CEBA funding to create
six jobs in three years and retain ten jobs, with a previous investment of$357,767; and,
WHEREAS,the loan is for$5,000 for five years at an interest rate of one-half of prime,with
monthly repayments; and,
WHEREAS,if the company doesn't create the jobs, a penalty of$833.33/job not created is
assessed; and,
WHEREAS, a penalty of twice the original loan amount and all principal and interest due
and payable is in place if the company leaves the community; and,
WHEREAS,the loan is in monthly payments over a five-year period,and the City of Ames'
security is a lien on the machinery and equipment of the company.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Revolving Loan Fund Contract with RocketChips, Inc., in the amount of$5,000 is hereby
approved.
ADOPTED THIS 1 Ith day of April, 2000.
Diane R. Voss, City Clerk Ted Tedesco,Mayor
Introduced by: Hoffman
Seconded by: Goodhue
Voting aye: Campbell, Cross, Goodhue, Hoffman, Quirmbach, Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this ] ]th day of April, 2000.