1. MBOI Infrastructure Loan Application Administration & Finance May 27, 2015

2. MBOI Infrastructure Loan Program Purpose: Loans to local governments for infrastructure improvements used by basic sector businesses Interest rate credit based on new qualifying jobs Use fee paid to local governments is assigned to MBOI to service loan Use fee eligible for Montana income tax credit Local government has no obligation for repayment

3. Project – Consumer Direct Construction of new office building in the North Missoula TIF District – loan proceeds applied to land acquisition and on-site infrastructure improvements City acquires land and improvements after construction completed – loan amount = $2.5 million Consumer Direct enters into Special Use Agreement that specifies payments to service the loan payments of MBOI loan Land and improvements are collateral for the loan Land transfers to Consumer Direct after obligations completed Consumer Direct pays Beneficial Use Tax on City owned assets