Blaine logo
File #: EDA RES 18-16    Version: 1 Name: Expenditure Blaine Lock & Safe
Type: EDA Resolution Status: Passed
File created: 9/6/2018 In control: EDA
On agenda: 9/6/2018 Final action: 9/6/2018
Title: APPROVING $44,143 EXPENDITURE FROM THE BLAINE EDA TO BLAINE LOCK AND SAFE FOR FIRE SUPPRESSION INSTALLATION
Sponsors: Erik Thorvig

ECONOMIC DEVELOPMENT AUTHORITY- Erik J. Thorvig, Economic Development Coordinator

 

Title

APPROVING $44,143 EXPENDITURE FROM THE BLAINE EDA TO BLAINE LOCK AND SAFE FOR FIRE SUPPRESSION INSTALLATION

 

Background

Blaine Lock and Safe purchased the building at 10136 Sunset Ave in December, 2017.  They purchased the building to relocate their business from their current location at 121st Ave. and Highway 65.  The owners are remodeling the building which requires fire suppression.  Due to lack of equity in the building because of low value, the business is having difficulty securing the necessary bank financing to complete both the building remodel and fire suppression.  Staff proposed the option of financing the fire suppression through a combination of the fire suppression grant program and a special assessment. 

The total project cost to add the fire suppression system, based on bids obtained by the applicant is $69,143.  The fire suppression grant program would pay up to $25,000 with the remaining $44,143 financed through a special assessment.  The special assessment has a 10 year term at 4.5% interest.  The initial fire suppression cost would be paid from the EDA general fund, with the fund being paid back the assessed amount over the 10 year period with interest.  Because the expenditure is over $20,000, EDA approval is required.

Recommendation

Adopt the attached resolution.

 

Body

WHEREAS, Blaine Lock and Safe purchased the building at 10136 Sunset Ave. and are proposing to remodel the building which requires fire suppression; and

 

WHEREAS, the Blaine City Council has approved $44,143 of the fire suppression work to be financed through a special assessment against the property and the remaining $25,000 is funded through the Blaine Fire Suppression Grant Program; and

 

WHEREAS, $44,143 is needed to pay for the completed work and is proposed to be funded from the EDA general fund; and

 

WHERAS, the EDA general fund would be paid back over the term of the special assessment with interest.

 

                      NOW, THEREFORE, BE IT RESOLVED, that the Blaine Economic Development Authority hereby approves the expenditure of $44,143 for fire suppression work at 10136 Sunset Ave. for Blaine Lock and Safe.

 

PASSED by the Blaine Economic Development Authority this 6th day of September, 2018.