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Resolution — Amendment to Loan <br />Agreement with Memory Experts <br />January 7, 2014 <br />Page 2 <br />enter into a Loan Agreement, dated as of February 1, 2005, with GE Capital Public Finance, Inc. as <br />lender and collateral agent, the Authority as issuer, and Memory Experts, as borrower. The funding <br />enabled the construction of a one -story, concrete tilt -up structure with a flat roof on a concrete slab, with <br />approximately 40,000 square feet located at 1651 St. Andrew Place in the Pres Corporate Center. The <br />project also included equipment and furnishings. <br />Under the original Loan Agreement, the lender loaned $4.4 million to the Authority and the Authority <br />immediately loaned the same $4.4 million to Memory Experts. Memory Experts is required to make all <br />loan payments directly to the lender. Neither the City nor the Authority bear any financial responsibility <br />for repayment of the loan. The lender has offered to reduce the interest rate from 5.41 % to 4.41 % to <br />provide debt service savings to Memory Experts. The balance of the loan to be refinanced is <br />approximately $2,247,640 with the payoff date remaining the same. <br />In order to achieve these savings, the lender and Memory Experts have proposed a First Amendment to <br />Loan Agreement which would lower the interest rate. The Authority is being requested to approve the <br />proposed First Amendment to Loan Agreement (Exhibit 1) as well as its accompanying resolutions <br />(Exhibit 2 and 3). <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Nancy Fong, AI ' <br />Interim VDir_ecFo_r___'J or <br />Industrial Development Authority <br />NF /DS /kg <br />Exhibit: 1. Amendment <br />2. City Council Resolution <br />3. Industrial Development Authority Resolution <br />2 -2 <br />