2006 NS EDC - Consent for New Indebtedness for OE Enterprises, Inc.

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Attachment A Update on OE Enterprises, Inc. Performance Obligations OE Enterprises' performance obligations are spelled out on pages 7-10 of the Agreement. #3 states that OE shall purchase the premises for $950,000 and make improvements of $300,000. Further, it notes that the commercial lending institution's deed of trust shall not exceed $715,000. These points are addressed in the abstract and no further financing is anticipated. #4 provides that OE Enterprises will insure the premises, pay all taxes, assessments, and utilities, and maintain the property. The EDC will visit the premises annually to visually inspect the property. Staff will also require annual proof of insurance and documentation that taxes, assessment and utility charges have been paid. #5 specifies: • the employment obligations, which will be reported by OE Enterprises to the EDC quarterly; • the payment to staff of a living wage and to consumers of a commensurate wage, both of which will be reported to the EDC annually within 45 days of the end of the fiscal year; and • the development of an "affirmative enterprise." OE Enterprises will report progress on this goal annually within 45 days of the end of the fiscal year. #6 covers the conveyance of a Conservation Easement. As mentioned in the Abstract, OE has provided a survey on which the Easement will be based. Staff will develop a plan for completing the Easement and monitoring it to the Board of County Commissioners by Fall, 2006. #7 specifies that OE will keep the premises in safe condition and in good repair. The annual monitoring visit by the EDC will verify compliance. The EDC will also receive and review quarterly Profit and Loss statements and the end of year audit report to make sure that OE remains solvent.