Minutes 04-15-2014 - Laserfiche WebLink

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d. Morinaga America Foods Temporary Office Lease — Link Government Services Center, Lower Level The Board considered approving a 12 month lease with Morinaga America Foods for temporary office space in the Link Government Services Center at 200 South Cameron Street, Hillsborough; authorizing the Chair to sign all necessary documents upon final review of the County Attorney. Jeff Thompson said this is a short term lease in under-used space in Link Government Services Center. He said the Morinaga team will occupy the space for a possible 12 months as the manufacturing facility is finished out. He said the target date is May 1, but this may be pushed to June 1. He reviewed slides with images of the facility and he noted that the terms of the lease are included in the packet. He said the 12 month lease cost is about $8,076, and this includes utilities and controlled access. Commissioner Dorosin asked if this will prevent the Board from using this space for meetings. Jeff Thompson said no. He said secure space will still be available for meetings. Commissioner Gordon said it is her understanding that this does not set a precedent for future uses of the space. John Roberts said it does not create a precedent. He said economic development is one area where the County still has broad authority. He said this includes leasing a building for commercial purposes. A motion was made by Commissioner Pelissier seconded by Commissioner McKee to: 1) approve a 12 month lease with Morinaga America Foods for temporary office space in the Link Government Services Center at 200 South Cameron Street, Hillsborough; and 2) authorize the Chair to sign all necessary documents upon final review of the County Attorney. VOTE: UNANIMOUS 8. Reports a. Report on Orange County's "Small Business Loan Program" The Board received a report on the "Small Business Loan Program", including details on current balances and activity, and received information on the Economic Development Office's new marketing efforts to increase awareness and demand for the program by potential small business borrowers in Orange County. Steve Brantley said the Small Business Loan Program was created to provide an alternative funding option to small, local companies that have difficulty obtaining traditional bank funding, but which meet the requirements of the Program's loan fund. He said the typical loan ranges from $5,000 up to $50,000 and the rate varies from prime plus 2 percent on the low end to prime 3 percent on the largest loans. He said the terms range from 5 -7 years and the origination fee is $100 minimum. He said the guidelines for making a lending decision include: applicant's credit worthiness; cash flow coverage; debt to equity ratio; and other collateral. He said there are a few restrictions, and only for-profit companies are eligible. He said an applicant cannot have revenues exceeding $3 million, and there cannot be any criminal history. Steve Brantley said there are challenges to expanding the program, including a general lack of knowledge about the program. He said staff is working on ad placements and new documents. He said the improving economy have also presented a challenge, as this program