HomeMy WebLinkAbout~Master - Loan agreements with REG, Inc. RESOLUTION NO. 09-012
RESOLUTION AUTHORIZING LOAN AGREEMENTS
WITH RENEWABLE ENERGY GROUP,INC.,
FOR THE CITY OF AMES
WHEREAS,Renewable Energy Group,Inc.,(REG)is an Ames company that designs and builds
turnkey bio-diesel plants, and, over the past two years, has experienced rapid growth of the alternative
fuels industry; and,
WHEREAS, total investment in the relocation of the corporate headquarters to Ames and
associated expansion is $1,900,000 with 110 new jobs in Ames over three years; and,
WHEREAS,the company received approval from the Iowa Department of Economic Development
(IDED)for direct assistance in the amount of$350,000 and tax credits and refunds totaling$450,000;and,
WHEREAS, REG will be investing company funds totaling $1,000,000 for the project; and,
WHEREAS,the local match required for the project is$100,000 with$50,000 as a forgivable loan
and a$50,000 loan; and,
WHEREAS, the forgivable loan will be funded equally by the City and the Ames Economic
Development Commission (AEDC), and the $50,000 loan will be funded by the City for a total City
commitment of$75,000; and,
WHEREAS,on April 10,2007,the Council authorized the City Manager to begin negotiations for
loan agreements with REG in an amount not to exceed$75,000,which would be brought back for Council
approval; and,
WHEREAS,loan agreements have been prepared that meet the general terms approved by the City
Council for a Revolving Loan Fund loan in the amount of$50,000 at an interest rate of one-half of the
prime rate (1.625%) and a Community Investment Fund forgivable loan in the amount of$25,000.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that
authorization of the mayor to sign loan agreements with Renewal Energy Group, Inc., for a $25,000
Community Investment Fund forgivable loan and a$50,000 Revolving Loan Fund loan is hereby approved.
ADOPTED THIS 13th day of January, 2009.
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Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Goodman
Seconded by: Popken
Voting aye: Doll, Goodman, Larson, Mahayni, Popken, Rice
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 13th day of January, 2009.