Thanks to RAEDI ED (and fellow elected official) Gary Smith for putting together a summary of how the Envirolastech loan works. We approved this loan at our last meeting and will use sales tax funds that were approved for economic development.
Envirolastech is exciting for Rochester for 2 reasons. 1st, the business will create 75 jobs paying no less than $12 per hour. Most jobs will pay more. 2nd, the business uses the waste material from the Olmsted County incinerator as an input to their lumber like product. As a result, between our recycling program, waste to energy, and the use of the byproduct we may achieve 100% recycling in Rochester. That means no more landfill ever!
We hope this is very successful.
- $250,000 in the form of a loan to Envirolastech:
- Envirolastech must secure an additional $4.75 million in financing prior to or in conjunction with the closing of the EDF loan.
- An interest rate of 6% will apply if we do not subordinate our loan or 15% if we need to subordinate in order assist them in obtaining the additional financing needed.
- A five year term with optional deferred annual payment schedule with a balloon payment of principle and interest at the end of year 5.
- Envirolastech must secure an agreement with Olmsted County to build and lease them a facility located adjacent to the Waste to Energy Facility.
- Loan would be for purchase of equipment. The equipment would be used to collateralize our loan.