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00039 <br />CoCe"'SANFORD <br />AREA GROWTH ALLIANCE <br />Economic Development dnamber of commerce <br />Visitor Services Well Cenlrred- <br />February 6, 2017 <br />Chairman Amy Dalrymple <br />County of Lee <br />P.O. Box 1968 <br />Sanford, NC 27331 <br />Re: Loan Agreement <br />Dear Chairman Dalrymple, <br />On April 17, 2013, a Memorandum of Understanding was established between the County of Lee, City of <br />Sanford, Town of Broadway, Lee County Economic Development Corporation, Sanford Area Chamber of <br />Commerce and the Economic Development Steering Committee providing recommendations for the <br />pathway forward for economic development. To provide aid with the cost of planning and fundraising the <br />County agreed to provide a loan to the Sanford Area Growth Alliance (SAGA) up to $150,000. The loan <br />was taken with two installments totaling $94,000. <br />These funds allowed the Growth Alliance to hire staff and begin the important work of merging the <br />organizations; putting processes in place for the efficient operation of the new public private company and <br />most importantly, raising $1.3 million dollars in private funding to solidify the organizations future for at <br />least the first five years of operation. <br />In the MOU described above, guidelines were provided for the loan. One item that was agreed on was that <br />"the loan agreement will include a clause that allows for a future request that the loan, or part of the loan, <br />be forgiven but the County is under no obligation to forgive the loan." On January 19, 2017, the SAGA <br />Executive Committee met. During the meeting the Committee voted to request the remaining balance of <br />the loan be forgiven based on the MOU. SAGA has made two payments on the loan leaving a current <br />balance of $56,400. The timing of this request coincides with the current payment being due on the loan. <br />Thank you in advance to the Board of Commissioners for consideration of this matter. I am happy to provide <br />additional information that may be helpful. <br />Sincerely, <br />Joy h <br />CEO <br />910-527-1103 <br />PO Box 519 1 Sanford, NC 1 27331 <br />www.GrowSonfordNC.com <br />(919)775-7341 or(919)774-8439 <br />