City Council Meeting Date: March 6, 2018
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Chris Heineman, Community Development Director
Title
Consider Resolution to Extend Third Loan Modification for StrataPoint, Inc.
Body
Action Requested:
Northfield City Council approves the attached Resolution for Third Loan Modification of the Master Development Loan for StrataPoint, Inc.
Summary Report:
From 1993 to 2011, the Northfield City Council established and maintained a loan fund to assist with economic development projects known as the 'Master Development Loan Fund.' This fund was established using tax increment funds from the Master Development District. The Council established a Master Development Fund Policy, provided guidelines on how the funds were to be used and the application process (see attached). The Northfield Economic Development Authority (EDA) has traditionally acted as the manager for Master Development Loans and provides recommendations to the City Council.
In 2009, the EDA recommended that City Council approve a Master Development Loan of $50,000 to StrataPoint, Inc. at a rate of 3.25% (WSJ Prime as of loan start date) amortized over 60 months (Resolution #2009-041). StrataPoint, Inc. is a GPS/GIS company that provides a web-based software-as-a-service product focused on golf courses, airports, municipalities and homeowner associations. The software was developed with professional superintendents, groundskeepers and city foresters to combine advanced point and click management using GPS imagery to bring accurate and current grounds data directly to any web-connected computer. The company made timely payments through April 30, 2013. However, the company experienced financial hardships and notified its creditors further payments on their financial obligations would not be feasible and they requested alternate payment arrangements.
In 2013, the EDA passed Resolution #2013-061 recommendi...
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