Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 22-222, authorizing the Snohomish County Executive to pay off early the Airport’s Community Economic Revitalization Board (CERB) Loan under Contract #S12-790A0-031 at Snohomish County Airport
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DEPARTMENT: Airport
ORIGINATOR: Nickolis A. Landgraff
EXECUTIVE RECOMMENDATION: Approve - Ken Klein
PURPOSE: To authorize the Executive to pay off early the Airport’s Community Economic Revitalization Board (CERB) Loan under Contract #S12-790A0-031.
BACKGROUND: .
Ø The County entered into a low interest loan (CERB Contract #S12-790A0-031) with a principal balance of $496,257 on March 12, 2012 via Motion 12-102 with the Community Economic Revitalization Board (CERB) to fund remediation of non-structural soils on 15.15 acres of Airport Property located off Commando Road.
Ø The County entered into a fifty (50) year land lease agreement with Capstone PF2, LLC on May 3, 2012 which outlines that the County must take out a CERB Loan and the County would pay 50% of the principal in years 6-15.
Ø Capstone PF2, LLC would like to sell their building and has requested a Consent to Lease Assignment; however, before proceeding they must pay off their share of the CERB loan which totals an estimated $215,540.93.
Ø Airport staff has requested from CERB via a letter dated April 13, 2022 for approval to pay off their loan and if approved by County Council the Airport would like to pay off our remaining share of $212,681.55 as well.
Ø Airport staff is requesting to pay the total estimated outstanding CERB loan balance of $428,222.48. Due to the potential for unknown fees or associated expenses staff is requesting authorization to pay the loan off up to $440,000 after approval is received from CERB and all funds are received from Capstone PF2, LLC.
FISCAL IMPLICATIONS:
|
EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU |
CURRENT YR |
2ND YR |
1ST 6 YRS |
|
410-521680-4101 - CERB Principal |
$428,222.48 |
|
$428,222.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
$428,222.48 |
|
$428,222.48 |
|
REVENUE: FUND, AGY, ORG, REV, SOURCE |
CURRENT YR |
2ND YR |
1ST 6 YRS |
|
130-37321680-6250 - Rents & Leases |
$215,540.93 |
|
$215,540.93 |
|
(Capstone PF2, LLC’s Share) |
|
|
|
|
410-321680-0800 - Fund Balance |
$212,681.55 |
|
$212,681.55 |
|
(County’s Share) |
|
|
|
|
TOTAL |
$428,222.48 |
|
$428,222.48 |
DEPARTMENT FISCAL IMPACT NOTES: The Airport has sufficient funds available in our 2022 budget program to accommodate this loan pay off of $212,681.55. Contingent upon Capstone PF2, LLC paying their share of $215,540.93 and CERB approving our proposed pay off, then Airport shall proceed with the final pay off payment.
CONTRACT INFORMATION:
|
ORIGINAL |
X |
CONTRACT# |
S12-790A0-031 |
AMOUNT |
$496,257 |
|
AMENDMENT |
X |
CONTRACT# |
Pay Off Loan |
AMOUNT |
NTE $440,000 |
Contract Period
|
ORIGINAL |
START |
12/30/2013 |
END |
1/31/2033 |
|
AMENDMENT |
START |
12/30/2013 |
END |
6/1/2022 |
OTHER DEPARTMENTAL REVIEW/COMMENTS: Reviewed/approved by Risk and Finance