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HomeMy WebLinkAboutPacket - 08/07/2017 - Finance and Personnel CommitteeFinance and Personnel Committee August 71 5:30 PM McHenry Council Chamber 333 S Green Street McHenry, IL 60050 AGENDA 1. Call to Order 2. Public Comment: Persons wishing to address the Committee will be asked to identify themselves for the record and will be asked but are not required to provide their address. Public comment may be restricted to three -minutes for each individual speaker. Order and decorum shall be maintained at public meetings. 3. Motion to approve March 6, 2017 Revolving Loan Committee meeting report. 4. Motion to approve July 17, 2017 Revolving Loan Committee meeting report. 5. Motion to approve July 13, 2017 Finance and Personnel Committee meeting report. 6. Discussion regarding City of McHenry Business Loan Program and possible Committee recommendation to amend the Business Loan Program procedures. 7. Staff Reports. 8. Any Other Business. 9. Motion to adjourn the meeting. Next scheduled meeting is September 5. The City of McNerrry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in acustomer-oriented, efficient, and fiscally responsible manner. REVOLVING LOAN FUND COMMITTEE MEETING REPORT Monday, March 6, 2017 Council Chamber, 6*15 p.m. In Attendance at Roll Call: Committee Members: Mayor Low, Chairman Alderman Wimmer1 Alderman Condon and Alderman Curry. Absent: None. Also in Attendance: City Administrator Morefield, Director of Economic Development Martin, Director of Finance Lynch and City Clerk Jones. Alderman Schaefer arrived at 6:20 pm and Alderman Santi arrived at 6:40 pm. Public In Attendance: Applicants Jimmy Bellavia, and Christy Steinmeier of Jimmy Bread & Brew. 1. Call to Order: Chairman Alderman Wimmer called the meeting to order at 6:15 p.m. 2. Public Comment: None. 3. Discussion Regarding Revolving Loan Application Jimmybread and Brew Director of Economic Development Martin reiterated that the purpose of the Revolving Loan Program is to provide low interest loans to qualified, existing and/or prospective businesses within the City of McHenry. The loan proceeds can be used to assist in the start-up of a new business, expansion of an existing business, updating of an existing facility to make the business more competitive or to provide an incentive for businesses to relocate to the City. He stated that the primary goal of the program is job creation and the expansion of the sales tax and property tax base. He informed the Committee that the program was established in the late 1980's with funding from a State of Illinois grant. The Revolving Loan Fund is not tax dollar money and the money loaned through the Revolving Loan Fund cannot exceed the balance in the fund at the time of the request. The current available lending balance in the Revolving Loan Fund is approximately $66,000. Director Martin advised the Committee that James ("Jimmy") Bellavia and his partner, Christy Steinmeier, on behalf of Jimmybread and Brew, has submitted an application to obtain a loan for $55,000 for the working capital. They intend to use the money, together with investor dollars, to build a business at 3425 Pearl Street in the City of McHenry. It is Jimmybread and Brew's intention to promote a brand utilizing fresh products and ingredients, artisan style baking and a good quality of food. Director Martin informed the Committee that Jimmy and his business partner, Christy (a trained chef), are committed to growing the business, which already has awell- established customer base, however they currently lack a permanent location. Jimmy has Revolving Loan Fund Committee Meeting March 6, 2017 Page 2 been a part of the McHenry Farmers Market and has assisted in drawing other businesses to the Market. The Committee reviewed and discussed concerns expressed by First National Bank of McHenry, who is conducting underwriting services for the proposal loan application. Should the City of McHenry enter into a Loan Agreement with Jimmybread and Brew the bank recommended that the following should be considered by the city: 1. Securing the Loan with first lien purchase money security interest in the business assets purchased (i.e., fixtures and equipment); 2. No disbursement of City Loan Funds unless and until all investor group seed funding of $145,000 has been validated and deposited as start-up funding for the enterprise; 3. An unlimited and personal guarantee from James Bellavia and Christy Steinmeier; 4. Personal and business financial statements be submitted annually; 5. Loan be repayable on a monthly basis, over a five-year term at 3.75% fixed rate of interest with no prepayment penalty; and 6. The City would buy back the Loan (after reassignment by First National) if the Loan payments become delinquent for more than 60 days. Director Martin stated the applicants fit the parameters of the program and he concurred with the banks recommendations. Responding to an inquiry from Alderman Curry, Ms. Steinmeier clarified that the restaurant would be on the first floor of the premises and the baking would take place on the second floor. Alderman Curry inquired about where the produce would be planted and Mr. Bellavia answered it is their intent to remove the asphalt from the parking lot and grow the produce in that area, which would then be sourced to the restaurant. Jimmy and Christy responded to Alderman Curry's inquiries regarding investment, financing and equipment purchases. Responding to Chairman Alderman Wimmer's inquiry, Mr. Bellavia stated they hope to open in late May or early June 2017. Mayor Low opined that she appreciates the bank's expertise and concerns. She stated Mr. Bellavia's product is outstanding and he has a unique concept. Mayor Low expressed confidence in the applicants' ability to market the business and succeed. Alderman Curry expressed some concerns regarding the financial aspect of the venture and said he intended to consider the matter further prior to voting at the Council level. Alderman Condon opined that it appears to be an exciting project and she looks forward to the success of the venture in the City of McHenry. Revolving Loan Fund Committee Meeting March 6, 2017 Page 3 Motion by Condon, second by Curry recommending approval of the application submitted by Jimmybread and Brew for a Revolving Loan for $55,000, and directed staff to work with representatives of First National Bank of McHenry to facilitate the Loan subject to the terms and conditions as presented; and, to bring the matter forward to the fAl City Council for consideration. All voting aye, motion carried. 4. Adiournment Motion by Condon, seconded by Curry, to adjourn the meeting at 6:48 pm. All voting aye, motion carried. Reviewed and approved this day of 2017. Alderman Scott Curry, Chairman REVOLVING LOAN FUND COMMITTEE MEETING REPORT Monday, July 17, 2017 Municipal Center Classroom, 5*30 PM In Attendance at Roll all. Committee Members Present. Chairman Alderman Curry, Alderman Schaefer and Alderman Mihevc and Mayor Wayne Jett. Also in Attendance: Director of Economic Development Martin, Director of Finance Lynch, and City Clerk Nevitt. Public Attendance: Applicant Mr. John Smith owner of Smith's Central Garage and Mr. William Busse representing lst National Bank of McHenry. 1. Call to Order: The meeting was called to order at 5:30 pm. 2. Public Comment: None. 3. Review of the Revolving Loan Application submitted by Anthem R.E. LLC d/b/a Smith's Central Garage located at 3315 Pearl Street for $70,000 to install a fire suppression system; and, proposed recommendations to present the application to the full City Council consideration. Director of Economic Development Martin presented and stated the Revolving Loan Fund is to be used for businesses in the City of McHenry for loans. Once the money is loaned out and repaid with interest the money is put back in the fund for future loans. Director Martin told the Committee he did not recommend approval of the $70,000 requested by Anthem R.E. LLC d/b/a Smith's Central Garage, however would recommend up to $50,000, so as not to deplete the fund. The applicant Mr. John Smith, stated he put in the application for the money to be used for afire suppression system for the building, without the system there cannot be more than 100 people in the building. If the fire suppression system is in installed he would be able to host bigger events in the building. Chairman Alderman Curry asked Mr. Smith if he had tried to get a small business loan, to which Mr. Smith replied yes. Alderman Schaefer stated his opinion that this is exactly what he is looking for in the downtown area, and this is a great example of how the revolving loan fund should be used. Alderman Mihevc asked how much is being loaned out right now and when is it being paid back. Director of Finance Lynch answered two loans are currently open; Plum Garden Restaurant owes approximately $12,000, which will be paid back this year and Hidden Pearl owes approximately $19,000, which will be paid back over the next 3 years. Chairman Alderman Curry asked Mr. William Busse from lst National Bank of McHenry if Mr. Smith had gone to him with the same application, would he run into the same problems he has been, to which the representative responded it would depend if it was a new or and existing business, the individual applying for the loan and the projections. Chairman Alderman Curry stated the funds Mr. Smith is looking for are available and with payments coming in from the two other businesses there would still be funds available to potentially loan to another business in the City of McHenry. Mr. Busse notified the Committee that the prime rate has changed since the application went through underwriting and added the City is involved with the terms and conditions of the loan and it is up to the City to determine the interest rate on the loan. Director Martin stated the recommendation is to grant the loan at the current prime rate. Alderman Schaefer stated his opinion to stay at prime rate at the time of the loan to remain consistent from what has been done in the past. Motion made by Alderman Schaefer, seconded by Alderman Mihevc to forward to the full City Council for consideration, the Revolving Loan application submitted by Anthem R.E., LLC d/b/a Smith's Central Garage located at 3315 Pearl Street for $50,000 including the conditions presented and with prime rate underwriting at 4.0%. All voting aye, motion carried. 4. Motion to Adiourn: Alderman Mihevc made a motion, second by Alderman Schaefer, to adjourn the meeting at 6:00 PM. All voting aye, motion carried. Reviewed and approved this day of Alderman Scott Curry, Chairman 2017. -2- FINANCE AND PERSONNEL COMMITTEE MEETING REPORT Thursday, July 13, 2017 Municipal Center Classroom, 5:30 PM In Attendance at Roll all. Chairman Alderman Curry, Alderman Schaefer and Alderman Mihevc. Also in Attendance: Director of Finance Lynch and Human Resources Manager Ann Campanella. l . Call to Order: The meeting was called to order at 5:30 pm. 2. Public Comment: None. 3. Motion to approve March 22, 2017 and April 5, 2017 Finance and Personnel Committee Meeting Reports. Motion made by Schaefer, second by Mihevc, to approve March 22, 2017 and April 55 2017 Finance and Personnel Committee Meeting Reports. All voting aye, motion carried. 4. Motion to approve a Fiscal Year 2017/18 Finance and Personnel Committee meeting schedule. Alderman Schaefer stated he did not mind having regular scheduled meetings, Alderman Mihevc agreed. Motion made by Schaefer, second by Mihevc, to approve regularly scheduled meetings at 5:30 pm prior to City Council meetings on the first Monday of the month, with the exception of March 2018. All voting aye, motion carried. 5. Discussion: Role of the Finance and Personnel Committee Manager Campanella stated she would like to better know what the role and function is of the committee, to which Alderman Schaefer responded by stating the role is to address union grievances, finance and budget. Also to bring items to the City Council after discussion on the committee level regarding any personnel issues and review revenue on a monthly basis. Alderman Mihevc stated he is new to the City Council but served on a School Board and the district had intense oversite with weekly meetings. Alderman Curry stated the role is to review topics having a financial impact on the City of McHenry, to research topics to flush out concerns before going to the full City Council and if a department hires personnel then it needs to be seen by the committee, review staff, and the Revolving Loan Fund Committee. 6. Discussion: now are topics identified for the Committee: Alderman Curry stated that anyone could identify topics for the committee. Alderman Schaefer questioned who had the ability to put a topic on the agenda, the staff or the Chairman of the Finance and Personnel Committee, to which Alderman Curry stated that he would ask City Attorney McArdle who the person is and until then Director Lynch or Manager Campanella would be the point of contact person. 7. Discussion: Expectation of meeting packet details on topics. Chairman Alderman Curry expressed there is a lot of preparation for the meetings. Staff may not have all the answers immediately, and the committee level is more of a dialog between aldermen and staff to make sure details are ironed out as much as possible before it goes to the City Council, Alderman Schaefer stated that his expectations would be to go through the budget, ask any questions, and then bring it to the Council for more discussion on the budget. Alderman Curry stated his expectations would be to recommend City Council approval on topics, the committee is not the final decider and whether to recommend or not recommend an item for approval. Manager Campanella said if questions are asked prior to the meeting it would be a timely process. Alderman Curry said he had no problem with staff contacting him with questions. 8. Discussion: Potential FY 17/18 Committee topics. Alderman Curry said anything that would take precedence such as the budget, an audit, and the agenda should have quick staff reports. He would like to see the affects tax incentives have on the budget, the audit report has a whole section, and review bills for possible saving opportunities. Alderman Mihevc stated he appreciates being informed on what is happening with the state and able to discuss in the committee. Alderman Schaefer said it would be good to have a monthly snapshot of reports and spending at the monthly meetings. 9. Motion to Adiourn: Alderman Schaefer made a motion, second by Alderman Mihevc, to adjourn the meeting at 6:39 pm. All ayes, motion carried. Reviewed and approved this day of 2017. Alderman Scott Curry, Chairman Carolyn Lynch, Finance Director McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.ci.mchenry.il.us FINANCE AND PERSONNEL COMMITTEE TO: Finance and Personnel Committee FROM: Carolyn Lynch, Finance Director DATE: August 7, 2017 RE: City of McHenry Business Loan Program ATT: October 13, 2003 Business Retention Loan Program Agenda Supplement and Meeting Minutes As requested by Chairman Alderman Curry, the Business Retention Loan Program approved by the City Council in 2003, is attached to aid in the discussion and possible recommendation of the business loan program procedures going forward. The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in acustomer-oriented, efficient, and fiscally responsible manner. AGENDA SUPPLEMENT TO: Mayor and City Council FROM: Douglas K. Maxeiner, City Administrator Kelly A. Kline, Finance Director FOR: October 13, 2003 Regular City Council Meeting RE: Business Retention Loan Program Background. At recent meetings between the Route 120 business owners and Illinois Department of Transportation officials, some businesses have shared concerns about their ability to keep their doors open during the construction stages of the project. Consequently, Mayor Low and staff began exploring ways for the City to assist at -risk businesses through this difficult time. As the City Council is aware, the City has had a revolving loan program in place for a number of years. This program was started with seed money provided by the State of Illinois. The purpose of the existing revolving loan program, however, is job creation. Staff is proposing the creation of a new, low interest loan program to focus on job and small business retention. The loan could be used to pay normal operating expenses to help struggling businesses through the construction project. Analysis. Staff has Ueen working with Bill Busse at the First National Bank of McHenry to create the program. Staff is proposing that the City provide the underwriting on Lite loan with the First National Bank administering the program. The proposed interest rate is fixed at 2.0%, approximately half of the yield rate for cash and short-term investments: Typically business loans are tied to the prime rate which is currently at 4.0%. In order to limit the City's exposure to potential losses, individual loans will be capped at $7,500 and the proposed total of all loans issued would be no greater than $75,000 at any one time. In an effort to provide a professional opinion on the credit -worthiness of the loan applicant, it is proposed that the First National Bank process the application. A credit report would be required with the application process. A summary of the findings and a recommendation would be part of the responsibilities expected from the bank. A nominal fee ($25 suggested) would be paid to the financial institution to cover the costs of the application review. The summary and recommendation from the bank would be provided to a new "Business Retention Loan Committee" for review. Staff is proposing that this committee consist of the Chairman of the Finance Committee, City Administrator, and committee consist of the Chairmanof the Finance Committee, City Administrator, and Finance Director. The recommendation of the Business Retention Loan Committee would then appear on the next consent agenda for the entire City Council for an approval on the City's underwriting of the loan. Recommendation. Staff recommends approval of the proposed Business Retention Loan Program with individual loan limits of $7,500, a maximum aggregate limit of $75,000 exposure for the City and the creation of an application review committee consisting of the Chairman of the Finance Committee, the City Administrator and the Finance Director. CITY OF MCHENRY Business Retention Loan Program Ob ectives • Recognize the City's interdependence with commerce, • Recognize the importance of retention of City of McHenry's sales tax base. • Provide financial assistance to -the City ofMcHenry's businesses during the State of Illinois construction project along and near Illinois State Route 120, • Encourage businesses to remain within the City of McHenry. • Encourage our citizens to support our businesses. • Share with the community the benefits from past loan programs, • Offer loans for business retention below market rates. • Supplement the current loan program (Revolving Loan Program) by focusing upon working capital needs during this time of construction. Strate2y • As with the other loans programs offered by the City, this loty interest loan will be made available to the geographic area within the corporate boundaries of the City of McHenry. • Interest only repayment schedule through time of construction. • Minimum loan requests $2,500. Maximum per entity $7,500, City's exposure limited to $75,000: • Personal guarantee by the loan recipient. • Only businesses within the corporate boundaries of McHenry with less than 15 employees are eligible. Responsibilities of City Staff ■ Process and review the loan application ■ Sen'e as a point of contact for the loan applicant Provide as much information as possible to the financial institution and to the Finance Committee for review and analysis of the loan applications Responsibilities/Expectations of Financial Institution ■ Process and review the loan application. ■ Process the required paperwork for the personal guarantee by the loan recipient. • Request a credit check on all loan applications. • Review the�credit check report for consistency and completeness. Provide a report of credit -worthiness to be presented to the Finance Committee. City of McHenry BUSINESS RETENTION LOAN PROGRAM PROVISIONS The provisions of the program are as follows: 1. The City of McHenry has made a commitment to fund the Business Retention Loan Program. The funding source is the Revolving Loan Fund, 20 Businesses with a commercial zoning and with less than 15 employees and within the corporate boundaries of the City of McHenry are eligible to participate, 3. Applicant must comply with all applicable building and zoning codes. 3. Application may be made only once per year. 4. Loans will be made on a first -come, first -served basis, 5. The loan will be granted at an interest rate of 2%. The maximum loan allowance may not exceed $7,500. The structure of the loan shall be for the first 18 months the repayment schedule shall be interest only. Principal and interest payments will begin in month 19. 6. The life of the Ioan shall not to exceed five (5) years. 7. For additional information, including a copy of the City of McHenry Revolving Loan Application Guidelines, please contact: Finance Director City of McHenry 333 South Green Street McHenry,Jt 60050 (815) 363-2100 CITY UP MCHENRY Step 1: The merchant/business owner/or property owner fills out the loan application and forwards the application and a $25 fee (non-refundable fee) to the City of McHenry. Step 2: City staff review the applications and supporting documentation to determine if applicant is eligible for program participation. . Step 3: The City staff forwards the application to a financial institution for review of the application and for credit reporting. NOTE: Additional information may be requested by the financial institution. Step 4: The financial institution prepares a report with a recommendation of whether to proceed given certain pre -determined credit reporting criteria. A fee of $2S is assessed for credit rewew. Step S. The credit report as prepared by the financial institution along with the application made by the merchant/business owner/property owner is forwarded to the City Administrator, Step 6: If the loan application is deemed credit worthy by an outside financial institution, the loan application is forwarded to the Business Retention Loan Committee for further review and analysis. Step 7: If approved by the Business Retention Loan Conunittee, City staff processes a letter of approval to the applicant (and applicant's file at City Hall). Applicant's file will remain active until all loan obligations have been met. DRAFT - City of McHenry Business Retention Loan Program Page 3 City of McHenry BUSINESS RETENTION LOAN PROGRAM APPLICATION FORM (A credit check will be peg foqued on all loans) Applicant's Name (Busi�tess/Properly Ownej): Olvner of ReCOrd (leave blmrk tj sane as applicant): Owner's Telephone Number: Applicant's Social Security/Tax ID Number: Applicant's Driver's License Number: Form of Organization: Sole Proprietorship Subchapter "S" Corporation Public/Private Corporation Applicant's Bank Accounts: Applicant's Telephone Numbers: Partnership Franchise Female/Alinorily 0,;�ned &Operated (Fax) (Email) Applicant's Address: Subject Building Address: Present Uses (check all that apply); Date Opened: Proposed Uses (check all that apply); Current Tenants (if otlaer tlta�z listed above); INTENDED 'URPOS� OF LOAi�i Retail Restaurant _ Other (specify) Retail Restaurant Other (specify)__ _ Describe intended purpose of loan. Attach additional pages if necessary. !:;::! I' 1 - (:.i!,; vl�.'.I_•I l�i,rr i;ct• ,- Office Residential Office Residential LOAN REQUEST Amount of LoanRequest (cannot exceed $7,500). I CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION IS, TO THE BEST OF MY KNOWLEDGE, TRUE AND ACCURATE, AND THAT IF GRANTED A LOW INTEREST LOAN, I WILL FOLLOW THE LOW INTEREST LOAN GUIDELINES. I ALSO AGREE THAT THIS APPLICATION AND ANY MATERIALS SUBMITTED WITH IT BECOME THE PROPERTY OF THE CITY OF MCHENRY, Business Owner's Signature Offzce Use Only: Date Submitted: Pre -approved by Certificate of Appropriateness4mailed to applicant: Final approval of completed work: Loan check number: Loan check mailed: Date LOAN AGREEMENT 1. The City of McHenry ("City") agrees to lend ("Borrower'), $ ,for the purpose of working capital to assist in the operation of Borrower's (business name/actiyity) . 2. 3. 4. Borrower represents that he is the owner of the business. These funds shall be used solely for the purpose to assist in the needs of the business. Borrower agrees to repay the loan amount of over a period of __.. months with interest at a rate of 2%per annum accruing until the entire principal and any accrued interest are paid in full. To provide assistance to the business, the loan structure is interest payments only for the first 18 months of the loan. A schedule for repayment is attached and incorporated as Exhibit A. 5. Failure of Borrower to make timely payments or use of the loan proceeds for purposes other than that approved by the City, shall cause the entire balance to be immediately due, including any outstanding principal and interest. 6. All notices under this agreement shall be in writing and delivered personally or mailed by certified or registered mail, postage prepaid, return receipt requested, addressed as follows: If to City: If to Borrower: Douglas Maxeiner, City Administrator City of McHenry 333 South Green Street McHenry, IL 60050 !:;:.�,1� !� - ! i��; ;i'..t::t,�r.r: ;��..,i��•..,:c i'._!_.�!;::n !....::i I�i��:r:a► I. This loan agreement consisting of two pages and two exhibits constitutes the party's entire agreement. City and Borrower agree that any representations or statements, whether express or implied, not contained within this agreement are not enforceable and are not a part of this agreement. CITY OF MCHENRY: BORROWER: Date By Date Attachments: A: Schedule for Repayment (to be provided by financial institution) l:�'•':i'�!'-Cis• �Jt•,!!_•1!_J:r', :'u: ' i :ll,t._i 1��lCJi!i:al l,L�ti !'I'• ;r,:U1 City of McHenry Overview & History Overview Revolving Loan Purpose Job Creation Goals and Objectives Retention & Growth Minimum $ 101000 Maximum $ 50,000 Terms depending upon availability interest Rate 3%-9.5% istory of the Revolving Loan Program 'clot Activity ;lassie Products &J Auto "co -Tech ':obbytown, Inc. Status/Note Proposed Low Interest Loan Job Retention Retentlon $ 2,500 $ 7,500 depending upon availability up to 5 years 2% Interest Rate 558,000 grin $14,025.48 int paid 5/15/95; opened 5/15/87 5% 550,000 prin $ 6,677.99 int paid early 5/23/03; opened 12/1/98 3% 5SUN grin $ 5,536.58 int paid 8/31/98; opened 8113/93 4-6% as scheduled S 6,000 prin $ 253.33 int 10193 paid 10/93; 18 month loan; opened 414 5-9.5% dependent upon prime October 13, 2003 Page 7 Alderman Bolger stated he has some reservations with requiring the expense of a plat of rvey prior to framing of a structure. In response to an inquiry from Alderman Glab, Director olitano stated the site elevations would be indicated on the spotted survey. In addition, the ndation elevation could be compared to the approved engineering plans to ensure complian In response to Alderman Bolger's inquiry, Director Napolitano noted the spotted survey uld only be required for the construction of a new single family home, a new commercial bui g or a new industrial building. Building additions would not require a spotted survey. Motion by Wimmer, sec ded by Condon, to direct Staff to prepare an ordinance amending the City's Municipal Co as follows: 1. Define Minor Permit and refe ce Minor Permit in both the Municipal Code and Zoning Ordinance Table 19. 2. Assign a Minor Permit Duration in w h the work must be completed within 60 days or extension would be required. 3. Change fence to barrier in regards to swi ing pools. 4. Add requirement for spotted survey and m , al pins to be installed at all property corners prior to allowing framing to begin. 5. Require basement or crawl space floor elevation be one foot above seasonal high water level. 6. Require lights above bathtubs and showers to be G nd Fault Interrupter (GFI) protected. Voting Aye: Bolger, Glab, Low, Murgatroyd, Wimmer, erson, Condon Voting Nay: None. Absent: None. Motion carried. DISCUSSION: BUSINESS LOAN RETENTION PROGRAM Finance Director Kline stated the City has uzed a Revolving Loan Program courtesy of a Department of Commerce and Community Affairs Grant since the 1980's. The Revolving Loan Program focuses on business expansion. The proposed Business Retention Loan Program (BRLP) would focus on business retention, particularly for those businesses adjacent to Route 120 and the current roadway improvement project. The BRLP would require payment of interest only up to eighteen months. Additionally, the Program would require review by a financial institution for the proposed credit application. Director Kline noted the Retention Loan Committee would be comprised of Finance and Personnel Committee Chairman, City Administrator, and the Finance Director, Director Kline stated a $25 non-refundable application fee is being proposed. City Administrator Maxeiner clarified the BRLP would not replace the Revolving Loan Program, but would augment another viable business loan option. Following review by the Retention Loan Committee, loan applications will be considered under the Consent Agenda at the next regularly scheduled Council Meeting. Some discussion occurred regarding the City's Revolving Loan Fund and its advantages to expanding businesses within the community. Alderman Murgatroyd opined the RLF has provided opportunity for several businesses over the years. Alderman Murgatroyd inquired if a sunset provision should be implemented as far as the BRLF October 13, 2003 Page 8 applications are concerned, i.e. no new applications would be accepted within six months of the completion of the Route 120 roadway improvement project. Alderman Murgatroyd and Alderman Condon expressed their desire to vote on this matter this evening and refrain from sending it to Committee for further consideration and delay. Alderman Glab expressed concern that the proposed loan amount of $7,500 per business would not be enough to keep a business operational during the construction inconveniences. Motion by Bolger, seconded by Glab, to refer the implementation of a Business Retention Loan Program to the Finance and Personnel Committee for further consideration, discussion and refinement. Voting Aye: Bolger, Glab Voting Nay: Low, Murgatroyd, Wimmer, Peterson, Condon. Absent: None. Motion failed. In response to an inquiry, City Administrator Maxeiner stated there are no specific parameters as to the geographic location of participating businesses. City Administrator Maxeiner stated it would be the responsibility of the business person to state in their application how their business has been negatively impacted by the Route 120 construction improvements. It is entirely possible a business could be suffering from the Route 120 construction even though it is not adjacent to Route 120. Motion by Murgatroyd, seconded by Wimmer, to accept Staff's recommendation and to approve the implementation of a Business Retention Loan Program with individual loan limits of $7,500 per business with a maximum aggregate limit of $75,000 exposure for the City, and the creation of the Retention Loan Committee comprised of the Finance and Personnel Committee Chairman, the City Administrator and the Finance Director Voting Aye: Low, Murgatroyd, Wimmer, Peterson, Condon Voting Nay: Bolger, Glab. Absent: None. Motion carried. MAYO = MENT AND REPORT Mayor Low re d Council of the Wednesday meeting with the Route 120 businesses, IDOT and IDOT's al contractor. These update meetings have been held on a regular basis throughout the projec nstruction. Mayor Low commended City Administrator, einer, Assistant Administrator Lockerby and Director of Public Works Marcinko who have en working diligently on a pIan to assist City businesses and schools in the event the garbag ulers strike was not resolved. They made a concerted effort to come up with a relief plan whi thankfully, was not needed as the strike is now at an end.