AGENDA DATE: 7/6/2016
TITLE:
Title
First Amendment to the Promissory Note for the Lewis & Clark Exploratory Center
BODY
SUBJECT/PROPOSAL/REQUEST: Approve fifth loan extension for Lewis & Clark Exploratory Center
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Foley, Kamptner, McClintic
PRESENTER (S): None.
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: On April 3, 2013, the Board of Supervisors approved an appropriation of $130,000.00 in CIP fund balance to the Economic Development Authority (EDA) for the purpose of funding a loan for the Lewis and Clark Exploratory Center (LCEC), subject to: 1) an agreement between the County and the EDA regarding the EDA's reimbursement of the funds to the County when the LCEC repaid the loan to the EDA; 2) a note or some other instrument acceptable to the County Attorney by which the LCEC would agree to repay the loan to the EDA with a specific time table; and 3) the City of Charlottesville contributing or committing to contribute the other $130,000 required to make up the $260,000 shortfall.
The original note provided that the loan was to be repaid, without interest, by October 17, 2013; however, a series of 6-month extensions to the loan has been granted by the EDA since that time and the LCEC has made payments to the EDA totaling $1,250.00.
On October 29, 2015, the Board of Supervisors received a letter from the LCEC requesting that the County forgive the EDA loan of $130,000 to the LCEC, and the City of Charlottesville received the same request; however, at its meeting on December 9, 2015, the Board of Supervisors denied the request, instead directing the EDA to meet with LCEC representatives to restructure the loan agreement in a way that accommodates the LCEC's funding challenges.
A meeting with the Chairman and Treasurer of the EDA, two members of the LCEC Board, and the Executive Director of the LCEC took place on February 5, 2016 to discuss the Center's projected revenues ...
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