HomeMy WebLinkAbout~Master - Cessation of negotiations for loan agreement with Frontline BioEnergy, LLC RESOLUTION NO. 06-455
RESOLUTION APPROVING CESSATION OF NEGOTIATIONS
FOR LOAN AGREEMENT IN THE AMOUNT OF$15,000
WITH FRONTLINE BIOENERGY,L.L.C.,
FOR THE CITY OF AMES
WHEREAS,Frontline BioEnergy,L.L.C.,is an Ames-based company with offices at 2521 Elwood
Drive; and,
WHEREAS, Frontline has developed and is commercializing a process to convert biomass into
combustible fuel gas; and,
WHEREAS,the company applied for and received approval for financial assistance from the Iowa
Department of Economic Development(IDED)in the form of a Value-Added Agricultural Produces and
Processes Financial Program$30,000 forgivable loan and a$30,000 loan; and,
WHEREAS,no local match was required for IDED funding; and,
WHEREAS,Frontline BioEnergy also applied for a Revolving Loan Fund loan from the City of
Ames, and at the July 25, 2006, meeting, the City Council authorized the City Manager to begin
negotiations for a loan agreement in the amount of$15,000; and,
WHEREAS, after review of the City loan terms and negotiations with City staff, Frontline
BioEnergy has notified the City that they are withdrawing their application for the loan; and,
WHEREAS,Frontline BioEnergy felt that at this point in their company development,the risk of
penalties related to failure to meet employment targets outweighed the benefit of a low-interest loan;and,
WHEREAS, Frontline BioEnergy continues to have the potential for growth in the bio-energy
industry and will continue to work with state and local economic development groups as its product
develops.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that
City staff is hereby directed to cease negotiations for a loan agreement in the amount of$15,000 with
Frontline BioEnergy, L.L.C.
ADOPTED THIS 14`''day of November, 2006.
d-now C'�/- 67-006,4"
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Goodman
Seconded by: Rice
Voting aye: Doll, Goodman, Larson,Mahayni, Popken, Rice
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 14`'day of November, 2006.