To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
Vote Requirement: 4/5th
SUBJECT:
title
Headwaters Fund Revolving Loan Fund Loan to the Salyer Store
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the Headwaters Fund Board's (HWFB) recommended Revolving Loan Fund (RLF) loan of $320,000, as part of a total participation loan with Arcata Economic Development Corporation (AEDC) of $640,000, to the Salyer Store for the purchase of the property and building renovations (4/5 Vote Required).
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SOURCE OF FUNDING:
Headwaters Fund Revolving Loan Fund (3843)
DISCUSSION:
On March 14, 2023 the HWFB made an unanimous motion to recommend that your Board authorize the Headwaters Fund (HWF) to participate with AEDC in a $640,000 under the Extraordinary Project Criteria of the Headwaters Fund Revolving Loan Fund Manual. The recommended loan will be used to purchase and renovate the Salyer Store property, which includes the Salyer Store itself, the rental space in the same building - currently leased to the Salyer Post Office - and 4 buildings behind the store - 3 one-bedroom units and 1 three-bedroom unit. The recommended loan of $640,000 would have a borrower injection of $250,000 for a total project cost of $890,000. Loan funds would be used for the purchase of the property ($600,000) and building renovations ($40,000). Borrower injection will be used for the purchase of the business ($200,000, which includes $70,000 in inventory, $50,000 in FFE and $80,000 in Goodwill) and $50,000 in working capital. HWF participation in this loan would be in the amount of $320,000, to be funded through the RLF.
The Salyer Store is a general/grocery store located in Trinity County at 50 Salyer Lane in the small town of Salyer, six miles east of Willow Creek. The current owners have owned the business for over 20 years and are well known in the community. They would like to retire and pass their legacy...
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