Title
RESOLUTION AUTHORIZING THE AMENDMENT TO THE CITY LOAN AGREEMENT WITH ST PAPER 1, LLC TO SUPPORT THE SALE OF THE PAPER MILL LOCATED AT 110 NORTH CENTRAL AVENUE TO SOFIDEL AMERICA, CORP.
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CITY PROPOSAL:
WHEREAS, on October 5, 2022, the city and ST Paper 1. LLC ("ST Paper") entered into a forgivable loan agreement for an amount of $242,000 from the city's grants and awards fund. The term of the loan is through July 1, 2033. There are continuing requirements to maintain 80 new jobs for the term of the loan agreement; and
WHEREAS, on December 22, 2023, ST Paper gave written notice to the city of its intent to sell the paper mill to Sofidel America, Corp. ("Sofidel") and requested amendment of the loan agreement to substitute Sofidel for ST Paper as the paper mill owner; and
WHEREAS, the city reviewed the financial capacity of Sofidel to effectuate the sale and continue operation of the paper mill.
BE IT RESOLVED, that the proper city officials are authorized to enter into an amendment to the city loan agreement substantially in the form of Exhibit A authorizing the transfer of the city loan agreement from ST Paper to Sofidel.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes city officials to enter into an amendment to the city loan agreement. This resolution is part of a package of resolutions facilitating the transfer of the paper mill owned by ST Paper located at 100 North Central Ave. to Sofidel America, Corp., ("Sofidel"). Sofidel intends to continue to operate the paper mill for the production of tissue paper. ST Paper purchased the paper mill in 2021 and has invested over $56 Million dollars in construction and new equipment. At the time of ST Paper's purchase, the city supported the private investment through two loans and tax abatement. A development agreement was also entered into between the city and ST Paper. ST Paper has met the requirement of 80 new jobs created, however, the requirement to maintain those jobs is ...
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