HomeMy WebLinkAbout~Master - Loan agreement with Frontline BioEnergy, LLC RESOLUTION NO. 06-286
RESOLUTION AUTHORIZING CITY MANAGER TO NEGOTIATE
A LOAN AGREEMENT ON BEHALF OF THE CITY OF AMES
WITH FRONTLINE BIOENERGY,LLC,
FOR THE CITY OF AMES,IOWA
WHEREAS,Frontline BioEnergy,LLC,is an Ames-based company with offices at 521 Elwood Drive;
and,
WHEREAS, Frontline has developed and is commercializing a process to convert biomass into
combustible fuel gas; and,
WHEREAS,the company has a contract in place to design,install,and operate a prototype system for
an ethanol facility located in Minnesota; and,
WHEREAS,this is a biotechnology company and is a targeted business for consideration for economic
development assistance; and,
WHEREAS, the company applied for and received approval for financial assistance with the Iowa
Department of Economic Development(IDED)form of a Value-Added Agricultural Products and Processes
Financial Program; and,
WHEREAS, no local match will be required for the IDED funding; and,
WHEREAS, Frontline has applied for a Revolving Loan Fund from the City of Ames; and,
WHEREAS, the loan funds expand the company's infrastructure and employee base at the Ames
location to continue commercialization of products and expects to create or retain nine jobs; and,
WHEREAS, the City's Economic Development Committee (comprised of the City's Manager,
Attorney, Director of Finance, Director of Planning and Housing) and Ames Economic Development
Commission Executive Director recommends funding of a Revolving Loan Fund loan in the amount of
$15,000 at an interest rate of one-half of the prime rate.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,that the
City Manager is hereby authorized to begin negotiations for a loan agreement with Frontline BioEnergy,LLC,
in the amount of$15,000 to be brought back to the City Council for approval.
ADOPTED THIS 251h day of July, 2006.
Diane R. Voss, City Clerk Ann H. Campbell,M yor
Introduced by: Doll
Seconded by: Popken
Voting aye: Doll, Goodman, Mahayni, Popken, Rice
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 25"day of July, 2006.