HomeMy WebLinkAboutReso 1996-18306 RESOLUTION NO. 18306
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING THE CREATION OF THE BORDER
ENVIRONMENTAL COMMERCE ALLIANCE MICRO LOAN
PROGRAM AND DELEGATING AUTHORITY TO THE CITY
MANAGER AND/OR HIS DESIGNEE TO IMPLEMENT SAME
WHEREAS, the City Council and the EDC have directed staff to investigate and develop
financial assistance tools for Chula Vista businesses as part of the City's economic
development efforts; and
WHEREAS, staff is bringing forward a proposed Border Environmental Commerce
Alliance Micro Loan Program (MLP) and continues to investigate the Housing and Urban
Development (HUD) Section 108 Loan/Loan Guarantee Program; and
WHEREAS, the proposed MLP is designed to benefit a targeted business cluster in
Chula Vista - i.e. start-up environmental businesses who are tenants of our Border
Environmental Business Cluster (BEBC) incubator; and
WHEREAS, the BEBC is the incubator component of the Border Environmental
Commerce Alliance (BECA) program and its purpose is to nurture start-up environmental
companies and to ensure their success; and
WHEREAS, one major barrier to a developing start-up company is access to capital and
in anticipation of this need, staff recommended and Council approved the set-aside of
~50,000 in FY 1995/96 Community Development Block Grant (CDBG) funding as an initial
capitalization of a BEBC revolving loan fund; and
WHEREAS, in that application, staff indicated that we would return with specific loan
program guidelines and a request for additional CDBG funds; and
WHEREAS, now that the BECA and BEBC are operating (with 12 tenants), staff has
identified a specific capital need that can be addressed by limited City funding, and with
minimal risk and administration costs; and
WHEREAS, the proposed MLP is designed to meet short-term financial needs
associated with BEBC tenant accounts receivables or contracts and is structured to build upon
two existing microloan programs (CDC and ACCION), but offering more liberal terms to meet
the tenants' unique needs.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby approve the creation of the BECA Micro Loan Program (MLP) and authorize the City
Manager to execute the Border Environmental Commerce Alliance Micro Loan Program
Agreement between the City and the Banker's Small Business Community Development
Corporation (CDC) in the form presented, with such minor clarifications as may be approved
by the City Attorney, the executed version of which shall be kept on file in the office of the
City Clerk as Document No. CO96-061.
Resolution 18306
Page 2
BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to
take all necessary and appropriate actions to implement the MLP and the related agreements,
including:
(a) Appointing an advisory Chula Vista Loan Review Committee.
(b) Approving each Chula Vista guarantee prior to submitting the application to
CDC.
(c) Execution of an Agreement related to Technical Assistance and City Guaranty
for approved loans.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to
execute a substantially similar MLP Agreement with ACCION International, subject to approval
by the City Attorney, and to take similar implementing actions with respect thereto.
Presented by A as t;/Z~orm ~
Chris Salomone igaard
Community Development Director City Attorne
............. 'T ....... I 1T
Resolution 18306
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 21st day of May, 1996, by the following vote:
AYES: Councilmembers: Alevy, Moot, Padilia, Horton
NAYES: Councilmembers: Rindone
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
ATTEST:
~Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Resolution No. 18306 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 21st day of May,
1996.
Executed this 21st day of May, 1996.
~Authelet, City Clerk