Print this page
Posted: October 10, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF101525-10

Agenda Item Title:

Consideration to Approve Revised Loan Terms and Authorize Drawing on Letter of Credit for Every Child Is Special

Origination Group:
Legal & Finance Committee
Petitioner:
Finance Office
Staff Contact:
Daniel Ainslie, Finance Director
Location:
Council Chambers
Agenda Item Summary:
In 2021, the City issued a $75,500 Life Safety Loan to Every Child is Special, a childcare facility. These loans are designed to reimburse providers for critical life safety improvements and are secured by Letters of Credit from local financial institutions.

To date, the last payment received on this loan was August 21, 2023. The current outstanding balance is $48,545.51. The existing Letter of Credit is set to expire on December 6, 2025.

In a final effort to support this business and recover the loan, staff proposes the following revised repayment terms:
  • An initial lump-sum payment of $8,000, due by October 31, 2025
  • A renewed Letter of Credit, with an expiration date aligned with the full repayment schedule
  • Monthly payments of $1,200, due on the 15th of each month
If Every Child is Special fails to make the initial payment or provide a renewed Letter of Credit by October 31, 2025, staff recommends drawing on the existing Letter of Credit. Thereafter, if any monthly payment is not received within five days of its due date, staff would draw on the renewed Letter of Credit.

Staff is requesting Council authorization to initiate a draw on either the existing or renewed Letter of Credit immediately upon breach of any of the revised terms outlined above.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries