The Fremont City Council will consider two resolutions which would provide a total of $700,000 in economic development loans for RTG Medical’s new planned office facility within the Gallery 23 East development.
The application for a $600,000 loan was submitted for the purpose of developing a new office facility for RTG Medical, a medical staffing agency focused on contracting travel and permanent healthcare professionals.
The request for a $600,000 LB840 loan is tied to a proposal by WLG Fremont to construct the 54,000 square foot building in which RTG would be the sole tenant. The total cost of the building project is estimated at $16 million, according to information provided within a staff report authored by City of Fremont Grant Coordinator Lottie Mitchell.
WLG Fremont, LLC is a limited liability company formed by DANA Partnership, LLP and RTG Medical. DANA Partnership, LLP is a private equity investment firm with a focus on real estate development.
Terms of the proposed loan include a total of $600,000 at zero percent interest. The loan would also be forgiven over a 60 month period subject to RTG increasing its workforce by 50 full-time equivalent employees. It would also be contingent on an executed lease agreement for no less than five years between RTG Medical and WLG Fremont.
Both the Local Option Review Team (LORT) and Citizen Action Review Committee (CARC) voted to recommend the requested loan during meetings on Feb. 19 and 20 respectively.
The LB840 loan fund is designed for the purposes of creating new jobs, expanding the labor market, retaining existing jobs, attracting new capital investment, broadening the tax base, and providing economic diversification.
Along with the requested $600,000 LB840 loan, WLG Fremont is also requesting a $100,000 loan from the city’s Economic Enhancement Fund. The funds are budgeted and generated annually by the Department of Utilities for economic development projects.
The terms of the $100,000 Economic Enhancement loan are similar to the LB840 loan, including a zero percent interest rate and is forgivable over a 60 month period subject to RTG increasing its workforce by 50 full-time equivalent employees.
It is also contingent upon an executed lease agreement between RTG and WLG for at least five years, a loan guarantee by RTG Medical and its ownership in WLG Fremont.
The Utility and Infrastructure Board reviewed the application on February 26 and voted to recommend approval of the loan application.
Other notable items on the Fremont City Council agenda include:
- A resolution on the city’s One and Six Year Street Improvement Plan.
- A resolution being brought forward by Councilmember Glen Ellis to accept the SlingStudio device video solution recommendation and authorize the City’s IT Department to purchase up to $3,000.00 of equipment necessary to facilitate video streaming of city council meeting.
- The final reading of an ordinance amending sections of Chapter 2 of the Municipal Code to adopt public comment period during city council meetings.
The full city council agenda can be found online at fremontne.gov/agendacenter. The City Council meeting is set for 7 p.m. on Feb. 26 within the City Council Chambers at 400 E. Military Avenue.