From: KIRK SAWYER

Sent: Mon Jan 17 14:25:04 2022

To: Mac Corthell

Subject: Toliver Rd

Importance: Normal

 

Mac,

I appreciate the flexibility the City has given throughout this process. We are committed to moving forward with the Development Agreement and finalizing the MURA loan and breaking ground on this project.

There are a few issues I would like to resolve with you and/or the appropriate parties, hopefully this week.

  1. 1. Property into LLC. Currently the property is held in my name, as Kirk Sawyer, individually. For various reasons, we are planning to move the ownership of the property into a limited liability company owned by my wife and I in the next few months. We need to make sure the MURA Loan documents support this transfer. We are willing to sign personal guarantees and remain personally liable for the loan.

 

  1. 2. Trucking Business Separate; Property as Collateral. We need to make sure that our business has access to financing and capital on commercially reasonable terms now and during the time this loan will be outstanding. We understand the City’s need to have security for this loan and are fine with using the property as collateral. We believe the unencumbered value of our property as an asset provides more than enough security for this loan, which will also be backed by our personal guarantee. We request that our truck repair business assets and operations are not included in collateral for the MURA loan.

 

  1. 3. Loan Structure. Based on our past conversations and my understanding of what we’ve agreed to, the MURA loan is for the full costs of the proposed and approved public improvements to Toliver Road, with 50% of the costs to be forgiven at completion, and 50% to be paid back over 30 years at 0% interest. The MURA loan security will be in second position behind our primary mortgage/commercial lending relationship. We also need to be able to refinance our primary mortgage as long as it doesn’t impair the MURA security.

 

  1. 4. Future Use of Property. Currently on the property, we have our truck repair business and a rental house as tenants. At some point in the future, we may want/need to divide the property into two parcels. We do also intend to expand our truck repair business facilities. We need the flexibility to do these reflected in the loan documents.

 

  1. 5. Cost and Timeline of Toliver Rd. Improvements. We are all living in unprecedented times, with so much uncertainty on what it takes to get things done. We are in the process of getting an updated bid on the Toliver Rd. Project, and it looks like the total cost will be approximately $300,000. In addition, though we are confident that it will be possible to complete, and indeed the project WILL be completed 1 year from starting, it is also possible that delays in materials availability or labor shortages could create issues in meeting that timeline. We ask for some flexibility for extending the ultimate completion date if necessary as long as the project is being pursued diligently by us and the contractor.

 

  1. 6. Payback Timeline. We request a payback period of 25 years, with the first payment to occur after 5 years.

 

  1. 7. Timeline for Finalizing MURA Loan. We signed a Development Agreement Amendment in November. It has a deadline of February 1 for signing the MURA Loan documents. We would like to request a limited extension of time on this point in order to finalize the loan documents.

 

Thank you for your consideration. Please let me know if it would be helpful to talk through any of the above issues, I am available this week to discuss.

In addition, I am working with an attorney, who will have edits to the Loan Document drafts and can propose language for the City to consider on the items above. Can we receive Microsoft Word versions of all of the Loan Documents?

Thank you!

Kirk Sawyer