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: .
> 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.
> 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.
> 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.
> 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.
> 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...
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