HomeMy WebLinkAboutPacket - Revolving Loan Fund Committee - 3/6/17 ,---tP
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Revolving Loan Fund Committee
McHenry Municipal Center
333 S Green Street
McHenry,IL 60050
March 6,2017, 6:15 PM
AGENDA
1. Call to Order
2. Public Comment: Any person 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. Discussion regarding the Revolving Loan application in the amount of$55,000
submitted by Jimmybread & Brew and proposed recommendation to present the
application for consideration by the full City Council
4. Motion to adjourn the meeting.
The City of McHenry is dedicated to providing its citizens,businesses,and visitors with the highest quality of programs
and services in a customer-oriented,efrclent,andfiscvdly responsible manner.
Department of Community&
""^ Economic Development
ram^. McHenry Municipal Center
NO333 Green Street
McHenry, Illinois 60050
V� Phone: (815) 363-2170
V Fax: (815) 363-2173
www.ci.mchenry.il.us
REVOLVING LOAN FUND COMMITTEE SUPPLEMENT
TO: Alderman Wimmer, Chairman Finance and Personnel/Revolving Loan Fund
Committee and Finance and Personnel/Revolving Loan Fund Committee
Members
FOR: March 6, 2017 Finance and Personnel/Revolving Loan Fund Committee
FROM: Douglas Martin, Director of Economic Development
RE: Revolving Loan Fund request from Jimmybread & Brew in the amount of
$55,000 for Working Capital
ATT:
1. Location Map
2. City Council Meeting Minutes dated December 16, 2013
3. Revolving Loan fund Application and Supporting Documentation
AGENDA ITEM SUMMARY: The Revolving Loan Fund Committee is being asked to consider a
request in the amount of$55,000, for a revolving loan fund for Jimmy Bread & Brew.
BACKGROUND: The revolving loan program provides low interest loans to qualified existing and
prospective businesses within the City of McHenry. Loan proceeds can be used to assist in the
startup of a new business, expand an existing business, and update existing facilities to make the
business more competitive, or provide an incentive for established businesses to relocate to the
City. The primary goal of the program is job creation and the expansion of the sales tax and
property tax base. It requires loan applicants to complete a formal application reviewed by the
Revolving Loan Fund Committee, consisting of the Mayor and Finance and Personnel Committee
which makes a recommendation to the full City Council.
The program was established in the late 1980's with funding from a State of Illinois grant. The
City completed four loans between 1987 and 1998. Loan applicants were required to pay all
attorney and processing fees and personally guarantee repayment of the loan. In 2003, the City
used funds from the retired state grant to create the Small Business Retention Loan program with
the goal of assisting businesses adversely affected by the reconstruction of Route 120.
In March 2010 Buddyz Chicago Pizzeria received a $75,000 loan to utilize at their location on
Green Street. When the business was sold this year the outstanding loan amount was satisfied
1
Department of Community&
Economic Development
`'�„ McHenry Municipal Center
i .R
333 Green Street
McHenry, Illinois 60050
t +���� Phone: (815) 363-2170
l�l� Fax: (815) 363-2173
www.ci.mchenry.il.us
with the City. In November 2011 Epic Cycle and Fitness received a $25,000 loan to startup their
business, formerly located on Main Street and currently located on Front Street. Recently, a loan
request was approved for a new startup business at 1208 N Green Street, in the amount of
$34,000. The latest revolving loan fund request was granted in 2013 to Perry Moy, owner of
Plum Garden, to assist in the expansion of his restaurant at 3917 Main Street. The approved loan
amount was $33,605. The current available lending balance in the revolving loan fund is
approximately$66,000.
The Revolving Loan Fund is not tax dollar money and the money which can be loaned through the
Revolving Loan Fund must not exceed the balance in the fund at the time of the request. The
Revolving Loan Fund assists in bridging the gap between a conventional commercial bank loan
and applicants seeking to start or expand a business but may not have perfect credit and need
funding to move their business to the next level. It promotes entrepreneurialism and growth of
small business.
ANALYSIS: Staff received a revolving loan fund application from Jimmybread and Brew. Jimmy
and his partner Christy are seeking $55,000 for working capital and intend to use this money, as
well as investor dollars to build their business at 3425 Pearl Street. Attached is his mission,
summary of his business plan, sales projections, concept, and his partner Christy's resume.
Jimmy and his Partners Christy can explain in more detail at the meeting their intent and
agreement they have with Chain O' Lakes Brewing should their request be approved and they
move forward to open a restaurant at 3425 Pearl Street.
I have known James Bellavia for about two years, meeting him by word of mouth due to his
company and the quality of the products he was selling. Since that time I have learned a great
deal about Jimmy and his business partner, Christy. They are committed to growing their
business which already maintains a well-established customer base except without a permanent
location. I have been working diligently to keep Jimmy's restaurant in the City of McHenry. His
brand, fresh products, artisan-style of baking and the quality of food he produces is phenomenal.
He sends out weekly menus and is all over the community doing cookouts and serving his fresh-
baked products. A little more than a year ago Jimmy was contemplating opening his business in
another community for various reasons. This did not happen however I don't want this to even
be an option moving forward.
There are other reasons I want Jimmybread and Brew in the City of McHenry. He is dedicated to
the City and works long hours to bake, market, and sell his products. He has been a part of
McHenry's Farmers Market and helped draw other businesses to the market. He is constantly
out in the community doing business but also being a great corporate citizen, again without a
physical location to work out of. He has participated in PTO events at different schools and has
2
Department of Community&
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815)363-2170
l It l Fax: (815)363-2173
ON
www.ci.mchenry.il.us
been a fixture at events at the existing Chain O' Lakes Brewing Company. Jimmy is out cooking
during these events, but he also draws people to the sites, including entertainment. This
promotion has assisted in boosting business for Chain O' Lakes Brewing, but also has been a
tremendous asset to our downtown business district. Recently his partner Christy moved back to
this area from Florida to help this vision become a reality.
Staff has been working with Bill Busse from First National Bank of McHenry, which conducted
underwriting services for the proposed loan application. Staff did speak with Mr. Busse who
expressed several concerns pertaining to the request including the following:
• New restaurants have a high mortality rate;
• There is no historical financial information to look at and analyze debt service. This is
because Jimmybread and Brew has no existing location however he has been operating:
baking, selling products, attending events, farmers markets for several years and has a
weekly menu which is distributed to an existing customer base;
• In order for the business to be successful and loan paid the business has to have a
positive cash flow, and there is little margin for error in Jimmybread and Brew's revenue
and expense projections;
• Mr. Busse stated in his analysis: "Another concern is the management group's total
reliance on outside funding. The management group is unable to invest any personal
funds or contributed capital to the plan;"
• Placing the property and building in separate Limited Liability Corporations;
• Jimmy and his partner Christy don't have a great credit history.
Mr. Busse stated that if the City enters into a loan agreement with Jimmybred and Brew he
believes the following should be considered by the City:
• Securing the loan with first lien purchase money security interest in the business assets
purchased (fixtures and equipment);
• 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;
• An unlimited and unconditional personal guarantee from James Bellavia and Christy
Steinmeier;
• Personal and business financial statements be submitted annually;
• Loan be repayable monthly over a five-year term at a 3.75% fixed rate of interest with
no prepayment penalty;
• City would buy back loan (after reassignment by First National) if loan payments become
delinquent for more than 60 days.
3
^�^�'`.,,► Department of Community&
Economic Development
vWIN McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
MyCHeru Phone: (815) 363-2170
Fax: (815) 363-2173
www.ci.mchenry.il.us
Staff, Jimmy and his partner know, understand and appreciate the concerns expressed by Mr.
Busse, and Jimmy and Christy will be at the Revolving Loan Fund Committee meeting to answer
questions and address Mr. Busse's concerns as well as those of the Committee.
Jimmybread is an established brand proposed to be located in a building originally constructed in
the 19th century as a brewery. He's very particular about his menu and is not trying to be all
things to everyone; therefore, what he does he does extremely well and I personally believe he
will be successful. His restaurant will be a positive and welcome addition to the community and
will offer another unique dining option for the community, which has many restaurants
particularly in our downtown area.
The bottom line is I recognize Jimmy Bellavia's passion; I've tasted his food and I have witnessed
his work ethic, success and commitment and am in full support of the next logical progression for
Jimmy being the opening of a restaurant; and I definitely want his restaurant to be located in the
City of McHenry. It's for the aforementioned reasons I support this application.
If the Finance and Personnel/Revolving Loan Fund Committee concurs it's recommended the
application submitted by Jimmybread and Brew for a Revolving Loan in the amount of$55,000
be recommended for approval and presented to the full City Council for consideration with the
following conditions.
• The loan be secured with first lien purchase money security interest in the business
assets purchased (fixtures and equipment);this amounts to $150,000-$200,000;
• 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;
• An unlimited and unconditional personal guarantee from James Bellavia and Christy
Steinmeier;
• Loan be repayable monthly over a five-year term at a 3.75% fixed rate of interest with
no prepayment penalty;
• City would buy back loan (after reassignment by First National) if loan payments become
delinquent for more than 60 days.
4
'�^ Department of Community&
'e Economic Development
ram'".► :� McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815)363-2173
www.ci.mchenry.il.us
Location Map 3425 Pearl Street
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5
Department of Community&
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815)363-2173
www.ci.mchenry.il.us
City Council Meeting Minutes December 16, 2013
FINANCE AND PERSONNEL COMMITTEE RECOMMENDATION TO CONSIDER A REQUEST FOR A
REVOLVING LOAN SUBMITTED BY PERRY MOY D/B/A PLUM GARDEN RESTAURANT 3917 W.
MAIN STREET, IN THE AMOUNT OF$33,605, SUBJECT TO CONDITIONS RECOMMENDED BY
FIRST NATIONAL BANK OF MCHENRY
Deputy City Administrator Martin reiterated to Council that the revolving loan program
provides low interest loans to qualified existing and prospective businesses within the City of
McHenry. Loan proceeds can be used in the start-up of a new business, expansion of an existing
business or the update of existing facilities to facilitate making the business more competitive
or to provide an incentive for established businesses to relocate to the City. The primary goal of
the program is job creation and the expansion of the sales tax and property tax base.
Deputy City Administrator Martin informed Council that the current available lending balance in
the revolving loan fund is approximately $52,000. Staff recently received a revolving loan fund
application from Perry Moy, owner of Plum Garden Restaurant, located at 3917 Main Street.
Mr. Moy is in the process of expanding the restaurant into the former location of McHenry
Printing, 3909 Main Street. Approximately 2,600 square feet of new space is being added to the
restaurant, which could accommodate up to 100 more customers. Twelve new positions will be
created as a result of the expansion. Construction costs were estimated at approximately
$78,000.
Mr. Moy is seeking a total of$35,000. Mr. Bill Busse, of First National Bank of McHenry, which is
conducting underwriting services for the proposed loan applications, visited the restaurant.
Mr. Busse inspected the proposed improvements at the facility and indicated to Staff that the
current business has no debt and a positive cash flow. Mr. Busse indicated he is comfortable
recommending a loan for the purchase of equipment, furniture and fixtures, in the amount of
$33,605, subject to the following terms and conditions:
• Securing the loan with a first lien purchase money security interest in the business
assets purchased (equipment);
• Acquiring an unlimited personal guarantee from Perry Moy; and
• Requiring the submittal of personal and business financial statements annually.
6
Department of Community&
Economic Development
�^ McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
McHenry Fax: (815) 363-2173
www.ci.mchenry.il.us
Mr. Martin informed Council that the Finance and Personnel Committee considered the loan
request at a meeting on December 2, 2013, and unanimously recommended approval of the
loan, in the amount of$33,605, and to forward the request to full Council for consideration. If
approved by Council the structure of the loan would be identical to those previously approved,
to include a five-year term with an interest rate equaling the prime rate, currently 3.25%,
Motion by Schaefer, seconded by Santi, approving the revolving loan for Perry Moy, Plum
Garden Restaurant, in the amount of$33,605, as presented subject to the following conditions
recommended by First National Bank of McHenry:
• Securing the loan with a first lien purchase money security interest in the business
assets purchased (equipment);
• Acquiring an unlimited personal guarantee from Perry Moy; and
• Requiring the submittal of personal and business financial statements annually.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
7
City of McHenry
Revolving Loan Fund Application
1. Information on business to be assisted:
&Ew
Name of Business
Street Address of Project
[Ide.V14 -Tl �
City State Zip Code
Chf bTy (Ski nmm 2 - - Zal -a_ 0
Name of Principal in Charge Business Phone Cell Phone
?Je0 ��va
Home Address of Principal
yioIo -TII CWIq
City State /j�,,� Zip Code
&
SS#of Principal DOB of Principal
50OLV
Type of Business Date Established
Employer ID# Name of Bank/Financial Institution
Bank Address(include City,State and Zip Code)
2. Project Description—Purpose of Request—Why undertaking the project:
Revolving Loan Fund Application Page 1
3. Information on Project Impact:
Job Impact:
#Existing Employees #Positions Created =Total�Q.
Relocation (if yes, identify new location in space provided):
Yes No
4. Information on Participating Financial Institution:
Name of Institution
Street Address
City State Zip Code
Repayment Terms:
S. History and Description of Company and Principals:
Revolving Loan Fund Application Page 2
6. Information on Use of Project Funds:
Land Acquisition $
Land Improvement $
Purchase and/or Remodel on Existing Building $
New Construction $
Purchase and/or Repair Machinery&Equipment $
Purchase Furniture&Fixtures $
Working Capital
Other Contingencies(Identify below): $
Total Project Cost
Revolving Loan Fund Application Page 3
EMPLOYEE INCOME CERTIFICATION FORM
(Job Retention)
Date: 1 ,�
Dear Employee:
Please provide the information requested on this form so that we can verify to the Department of
Commerce and Community Affairs that your employment here is achieving the goals of the Illinois
Community Development Assistance Program. The information will be placed in your confidential
personnel files and is available to only a limited number of company officials.This information is also
subject to verification by the City of McHenry and representatives of the Department of Commerce
and Community Affairs. n�
For assistance, please see ��I� �MAQ% -�BeO Thank you.
(Company Official)
Step 1: Circle the size of your family. County yourself and all family members living at home.
Family Size: 1 0 3 4 5 6 7 8 9 10
Family Income: +-$50,000 (275,000 )
$100,000 $125,000 $150,000
$175,000 $200,000 $225,000 $250,000 $275,000+
Step 2:
A. Indicate our racial group.
White_ African American Hispanic
Native American Asian/Pacific Islds Other
B.Sex: Male Female
C.Are you a female Head of Household? Yes_� No
D.Are you handicapped? Yes Nox
Revolving Loan Fund Application Page 4
jimmybread and brew mission 2016
THE MOVEMENT FOR CLEAN FRESH FOODS AN.D A LOCAL FAMILY FRIENDLY
ESTABLISHMENT IS ON!
I WOULD LIKE TO INTRODUCE TO YOU THE NEW EVOLUTION OF FOOD AND
CRAFT BEER
jimmybread & brew
Inspiring and Being Part of the Community While Paving the Way for the Sustainable
Artisan Food Movement.
We believe in Simplicity, Integrity, and Being' Passionate in all that we do.
*Bringing Back Life and New Meaning to the Art of Baking Breads, Fresh Pastries,
Homemade Foods and Brewing Beer
*We will whenever Possible Try to Buy Only Seasonal Foods from Local Farms and
Grow Our Own. We Prepare Amazing Dishes with.an Environment That Feels Like
Home and We Serve Only Fresh Farm to Table Meals to Our Community
*Here at jimmybread and brew you don't Just Eat the Food —You Share the Experience
Where the People Who Serve You Are Your Friends
----------------=---------------------------------------------------=------------------------------------------------
The time has come for a local place that serves true local food in McHenry,ll. A place
that uses fresh ingredients, no preservatives and brews small batch craft beer. Two old
friends that come together again to combine their crafts and years of experience to
serve sustainable foods and be a leader'in McHenry County,ll.
Christy Steinmeier is the executive chef at TR Fire Grill in Winter Park, Fl. Christy has
over 20 years gourmet and casual dining experience. This experience has given her
extensive knowledge in culinary and food customer service. Christy's desire to operate
her own farm to table gastro pub near her hometown of Chicago is bringing her back for
this great opportunity.
Jim Bellavia is an artisan baker that has been serving McHenry County and outlying
areas for over five years and has over ten years baking experience. Jim uses old world
techniques for breads and pastry that take up to three days to make. Most product
ingredients can be counted on one hand and can easily be pronounced. His philosophy
of less is more and use what you have to layer flavors and make as much as you can
without a can and in-house creates products that are head and shoulders above the rest
that are offered within 20 miles of the town of McHenry.
jimmybread and brew mission 2016
Separate, these friends of 20+ years can stand up to any producer of fine food.
Together, they will be a leader in farm to table and sustainable culture. They will be
mentors of people,young and older, sharing their knowledge and experience that was
passed on to them thorough the years by other successful individuals. Together, they
will build a place of community, of worth not just financially, but also of true meaningful
substance that will be measured by the ripples of positive change it creates for years to
come.
It is our goal, through this essay to start a conversation and find the right investing
partners in which jimmybread and brew can obtain financing and move forward to open
a retail farm to table gastro pub,bakery and brewery that specializes in artisan breads,
pastries and foods using our own produce and providing superior customer service.
We are seeking $400,000 .This funding will be used to purchase 3425 Pearl St,
McHenry,ll, purchase equipment, make improvements to the property,hire
employees,lawyer fees, and the daily operation of jimrnybread and brew.
The city of McHenry is fortunate to have a low interest revolving loan account suited for
start up ventures such as jimmybread and brew. Currently, the amount in the loan pool
is $55,OOO.We plan on applying for this loan to help;fund our project.
jimmybread is an artisan bakery that uses quality flours and local ingredients whenever
possible. We make many of the ingredients that go into our products to ensure a high
quality product for our clients. We currently offer 30 breads, 24 types of scones,
croissants, danish,cookies and several gluten free choices along with holistic dog treats.
McHENRY BREWING COMPANY AND COL BREW-HOUSE
The building we are proposing to house jimmybread and brew will be a main focal point
of our vision. Built in 1868, it is on the historic register as the first brewery site in
McHenry County. Before becoming Chain O Lakes Brewery it was a gas station, a
successful restaurant for 20 years, and a polish deli among other businesses.
In 2006 the building was bought and due to years of use and limited updating, an
extensive rehab was started and finished by the owner. Rebuilding of exterior walls,
updating of three phase electric, installation of new HVAC units, water heaters, walk in
freezers and coolers and a ventilation hood were added to bring the building up to code
and in position to serve the community as a deli/restaurant.once again. The owner of
the time put approximately$300,000 into the renovation. Due to the failure of the deli,
the owner decided to let the building go into foreclosure where it sat for several years.
The building went to auction and was purchased by;the current owner Curt Ames and
transformed into Chain O Lakes Brewery.
In the past three years Curt has worked on his craft,and created a local brew pub that is
a family place and a cornerstone of downtown McHenry.Sticking to his three year plan
i
jimmybread and brew mission 2016
to re-evaluate the business, Curt has decided that the building no longer serves his
needs for the possible expansion of his craft. To be clear, we are not buying Chain O
Lakes Brewery, we are buying the brewhouse and equipment.
Due to our relationship with Curt, his employees, and serving his clients for many
events over the past three years, we are lucky enough to be the first to be considered
for purchase of the building. The purchase price of the building and equipment to brew
is $250,000. Curt will provide the financing of the building with a downpayment of
$75,000.
It is our plan to make some changes to the building:to serve our vision fully which
include, creating a bakery on the second floor along with food prep. Installing a kitchen
on the first floor. Removal of the current bar for front of house service for our clients and
creating additional windows for the main room to the brewing room for openness and
additional light and installation of tables for clients. We are currently working with an
architect to plan the update to the interior.
While the interior will be the heart and soul of our operation, its the exterior that will
solidify jimmybread and brew as a leader in the community. An update to the current
bier garten with professional landscaping and a wood-fired pizza/bread oven will be
installed and the current parking lot will be converted to a working garden which will
supply the majority of our organic produce throughout'the year. We feel that the
inclusion of these two exterior items will provide a family oriented gathering place with a
truly local product, a fresher product, a product that leaves a minimal ecological
footprint, and a product that is healthier and cheaper for our cost of goods sold in the
long run.
In addition to the above items, the building is on the:parade route,taste of McHenry
walk, taste of fall walk and the Christmas walk. 5000 cars travel directly in-front of the
building on a daily basis, with 14,000 a block away on;rt 120 and 30,000 two blocks
away at the intersection of rt 120/31. Veterans Park;is'a block away and within eyesight
of the brewery. Many events happen at this park which include several summer
festivals, the farmers market, city band night every Thursday evening May thru
September and family movie night on Fridays. Our close proximity to this park will
enable us to provide quality breads, pastries, food and beverages to most, if not all of
these events and additional exposure to the to thousands that visit the park every year.
JIMMYBREAD CURRENT CLIENTS
Email Club- the jimmybread email club consists of 310 clients, 248 local every week
and 62 in the city of Chicago once a month in which we email weekly with a choice of
products to choose from. This list varies depending on products we obtain from our local
farms, ingredients we produce in house and client.request. Usually we will feature up to
6 breads, croissants, danish, 4 scones and gluten free.options. The email club has
grown 100% by word of mouth referrals and works fairly simple. We send out a menu
every Monday and ask that clients reply by Wednesday, usually 9am for delivery
Thursday or Friday. Also, if a client prefers, they can pick up their order at Chain 0
jimmybread and brew mission 2016
Brewery or the McHenry farmers market. If a client do,es not wish to order, they simply
need not reply. We deliver to clients homes and work depending on their wishes. The
email club is wide spread, ranging from in town, to the northwest suburbs(Rolling
Meadows, Palatine area) and the city of Chicago.
CURRENT COMMERCIAL CLIENTS
Chain O Lakes Brewery, McHenry, II- We currently use their beers to produce our
pretzel baguettes for our menu. These beers vary depending on what Curt is brewing
but ranges from their Fox River Scotch Ale, West Coast IPA's and Oatmeal Stout
recently. There is no money exchanged in this relationship. Curt and I trade beer for
product. I make them pretzels for their clients to eat while at his brewery and
jimmybread gets beer in return to make the pretzel baguettes(a top seller) for email
clients. jimmybread also provides grilled food and sandwiches for the breweries 2nd and
3rd anniversary, Oktoberfest, Fiesta days, monthly music nights with one days sales
ranging from $500 to $1000.
Crescent City Cajun,Johnsburg II- a local chef that specializes in cajun food. CCC
serves clients at local breweries in McHenry County,fairs and festivals in Crystal
Lake,McHenry, and Lake County. CCC orders up to 40 baguettes bi weekly so serve
with their food.
Faith Presbyterian Church, McHenry,ll-jimmybread bakes and donates organic
gluten free bread for their monthly communion.
Past Clients
Beaver Creek Gardens, Poplar Grove, II- Beaver Creek is a small farm that offers its
produce to a growing cliental. These clients subscribe'for a season, or half season and
the items in the boxes vary depending on what's currently available. We delivered our
products weekly for sale at their Saturday farmers market. Sales from Beaver creek
varied from $60 to$75 per week.
The Bike Haven, McHenry, II-jimmybread provided healthy carb and protein loaded
breads for their road and mountain bike race team. We also provided a variety of fresh
baked scones for the Saturday morning post ride which includes the afore mentioned
race team and friends(clients) of the shop, the number of attendees varies, but is up to
20 riders at times.
Faith Community United Church of Christ, Prairie Grove, II-jimmybread baked and
donated bread for their monthly communion service.
Taste This,Algonquin, II- We cured and smoked our,own pork belly and cheddar
scones in a small cupcake (30gram) to be skewered atop their bloody mary drinks every
Saturday. The quantity ranged from 30 to 50 a week. We worked closely with Taste This
jimmybread and brew mission 2016
creating products with their products unique to only their establishment. Taste This did
express interest in jimmybread opening in an empty,spot adjacent to their store. They
have also requested to carry our line of scones on a daily basis.
Epic Deli in McHenry II is known for their creative and large sandwiches, with 17k
followers on facebook, radio advertising and winners of "the best of the fox(valley)"
several years in a row, they serve up to 500 clients a day. jimmybread worked closely
for a year creating unique ciabattas to pair with their weekly advertised specials and
offered our pretzel baguettes daily for any of their 40 different sandwiches. Although we
no longer work with Epic, we gained priceless experience and exposure due to our
previous relationship.
Corkscrew Point is a wine bar/bistro on Riverside Dr;in downtown McHenry that has
also approached jimmybread to provided baked goods.
COMPETITION
Riverside Bakery is an established bakery of 40+ years on Riverside Dr in McHenry, ll.
This is the only true bakery serving this town of 25,000 people.Riverside bakes limited
artisan products. They are a full service bakery which specializes in birthday/wedding
cakes, coffee cakes, doughnuts, smiley face and spritz cookies, danish and doughnut
holes. While they are very good at creating their products and customer service, there
are few similarities between jimmybread and Riverside bakery.
Panera bread, JimmyJohns, Subway Local national chains
Swiss Maid Bakery in Harvard and Woodstock (20 and 13miles) and Le Petit Marche'
in Crystal Lake(10miles) are the only other locally owned bakeries that may provide
competition. Swiss Maid is very similar to Riverside and Le Petit is a bistro that makes
their own bread for use with their sandwiches.
There are various diners in McHenry that serve breakfast lunch.and dinner. These
diners while successful in the community, do not use local ingredients and minimal
processing that we feel will separate jimmybread and brew from them.
MARKETING
jimmybread will market our products largely with social media utilizing a
webs ite,facebook and instagram. We will also use traditional print media and electronic
billboards. Our exposure at farmers markets in the outlying area will help us to gain
clients in markets away from our shop in McHenry. Before we take over.the property we
will install ovens and start baking for commercial accounts, retail and offer food to the
jimmybread and brew mission 2016
current clients of Chain O Lakes Brewery. After the re.-iovations are complete, we will
have a soft opening for investors,friends,family and local businesses and then an
advertised grand opening for the community.
MENTORSHIP
We are lucky to have been the benefactor of several successful business people that
have been mentors through their actions and advice. It is our goal to be a mentor to our
employees. jimmybread intends to teach employees good habits and skills to help to
insure success in any form of their daily lives. If an employee is dependable,
hardworking and intends to be with jimmybread for a longer duration, we will set up a
retirement account and match a small percentage of their paycheck to help fund this
account. It is our feeling that this type of benefit will'insure a better bond,
communication, work experience, less employee turnover and advertising that is
uncommon in a small business. We feel that if we service our employees, like we do our
clients, jimmybread will be a pillar of the community.that is more than just about locally
grown, locally brewed and baked goods.
JIMMYBREAD SALES HISTORY
One day per week including email club and the farmers market.
2014 2015 2016
$253.54 $318.48 $394.19
+26% 19%
Increased sales for jimmybread are due to several factors including word of mouth but
also due to extensive price point trials at the McHenry Farmers Market, the email club
and gained experience from baking at Bob's Well Bread in Los Alamos, Ca. Baking in
Los Alamos taught jimmy to be more efficient by offering, mixing and baking certain
items which in turn has allowed him to utilize time and oven management to its fullest
potential.
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jimmybread and brew omission 2016
REVENUE STREAMS
jimmybread and brew will benefit from several revenue streams. This will include but not
limited to baked goods,breakfast items, lunch service, dinner service, charcuterie,
beer sales, our own produce sales in summer months farmers markets, commercial
accounts and catering.
SALES PROJECTIONS
Current sales of beer at McHenry Brewing Company are 140 per shift or 540 per week
based on a four day, 23 hour week. We will assume;we will average 100 sales per day
based on a six day week at $5 per pour, or $500 per day. For baked goods and coffee,
we will use the three year average of jimmybread sales of$320. Restaurant sales will
include breakfast and lunch items, afternoon food for brewery patrons and dinner on
Thursday, Friday and Saturday, brunch on Saturday and Sunday mornings. estimated at
$400 per day for a total of$1220 per day and a 26 day month
The following is a table based on metrics provided qy Michel Saus of the San Francisco
Baking institute.
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daily $500 $750 $1,000 $1,250 :$1,500 $1,750 $2,000
sales
26 $13,000 $19,500 $26,000 $32,500 $39,000 $45,500 $52,000
days
Rent $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200
15%
Cogs $2,340 $3,510 $4,680 $5,850 $7,020 $8,190 $9,360
18%
Labor $9,600 $9,600 $9,600 $9,600 $9,600 $10,500 $11,400
30%
Overhe $2,860 $4,290 $5,720 $7,150 $8,580 $10,010 $11,440
ad
22%
Profit -$4,000 -$100 $3,800 $7,700 $11,600 $14,600 $17,600
18%
12mont -$48,000 -$1,200 $45,600 $92,400 $139,200 $1751.200 $211,200
h profit
jimmybread and brew mission 2016
MONTHLY ESTIMATES
avg daily percentage NOTES
sales increase/
decrease
Jan $610 -50% new years resolutions-shut
down for two weeks
Feb $610 -50% Valentines/Fat Tuesday
Mar $915 -25% St Patricks day
Apr $915 -25% Easter
May $1,220 --- Graduations/Farm mkts start/
band nites/outdoor events/bier
! garten service
Jun $1,830 +50% I..Graduations/Farm mkts start/
band nites/outdoor events/bier
garten service
Jul $1,830 +50% ' Farm mkts/Fiesta Days/band
nites/bier garten service
Aug $1,830 +50% Farm mkts/band nites/bier
garten service
Sep $1,220 --- ' School starts/farm mkts end/
' band nite ends/bier garten
service
Oct $1,220 --- oktoberfest in bier garten
Nov $1,220 --- holiday season starts
Dec $1,525 +25% :holiday season
Totals $1,245 ---
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jimmybread and brew mission 2016
POPULATION AND INCOME
3 MILES 5 MILES 10 MILES
POPULATION 34172 0729 265175
INCOME $77,214 $80,620 $84,064
HOUSEHOLDS 12967 21064 95442
INCOME PER CAPITA
Five towns within the 5 mile range of McHenry have a total per capita of$157,376 as of
2013, the town of McHenry per capita is $29,751 and the average for the county is
$32000. The U.S average per capita is $28155.
USE OF FUNDING
$134,600 down payment for purchase of building
$85,000 equipment
$78,400 cash on hand (4 months expenses)
$30,000 buildout of interior
$25,000 update of bier garden and installation of produce garden
$20,000 furnishing,small-wares
$10,000 lawyer and license fees
$10,000 delivery vehicle for farm markets,catering
$7,000 cost of goods for startup, inventory
$400,000
EQUIPMENT PROFILE AND COST
Six burner range with 24" griddle and double.oven $8795
11" Panini sandwich grill $457
Hobart 12" Meat slicer 1/2 hp $1629
Robo Coupe food processor $2930
Natural Gas 401b floor fryer $569
Doyon Twelve pan Artisan Stone Deck oven $41823
jimmybread and brew mission 2016
Natural Gas Double Deck Convection Oven $5440
Doyon 50gt Spiral dough mixer$8155
Countertop electric bread slicer 3/4" $1429
Advanco Insulated Heating/Holding Cabinet$1259
Pizza/Sandwich Prep table $1800
Proofing racks ,proofing baskets, proofing boards, scales, misc storage racks ,tables,
utensils $5000
Shipping, installation $5000
$84286 total
These figures are based on new equipment at retail;p�ices. jimmybread has a
relationship with RAH Equipment in Round Lake that;'will help us to find quality used
equipment when appropriate to save money.
OUTLINE OF OPERATION AGREEIMENT FOR INVESTORS
Investors will receive an agreed upon percentage of p.rofits paid out on a yearly basis.
The total percentage of profits given to investors for their contribution of working capital
will be 40%. The minimum requirement to invest is $25,OOO which will entitle the
investor to 6.25% of the profits paid to investors(40%) yearly based of funding of
$400,000. This percentage will also give an investor the same percentage rights to
ownership of the building. Initial investments will be returned within a five year period
and sooner if sales exceed our expectations. If jimmybread or an investor decides to
end the relationship, jimmybread must buy out the investor based on the value of the
business and their percentage of profits. Example, an investor has a 12.5% stake in the
profits, if jimmybread is valued at $400,000, jimmybre=.d must pay the investor$50,000
for their rights to their percentage.
The remaining 60% of the business will go to working partners, James Bellavia and
Christy Steinmieier, who will receive a combined monthly salary of $6000 in addition to
the profit pool. All profits to be paid to the working parters will be re-invested back into
jimmybread until the building is paid off, all investors original investments are repaid, all
improvements on the property are made, and four months expenses in cash is on hand.
Once these criteria are fulfilled, the working partners may then receive yearly payouts
based on their percentage.
If the renovations/equipment come in under budget, any excess funds will be used to
pay down the debt on the building.
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jimmybread and brew n"ission 2016
SHORT TERM TIMEL,NE
oct 2016 send out business plan
oct 23 open house for investors
oct/nov deposit funds into LLC account
nov/dec locate and start purchasing equipment
jan 2017 install.bakery ovens- start baking for comme;rcial.accounts-
start working with Curt to brew beer-
start serving sandwiches to COL clients -final planning of produce garden
update investors
feb fat tuesday event
march start demolition of parking lot and installation of produce garden
apr prepare for transfer of property
update investors
may 1 property is transferred
farm markets start
start renovations.
soft open
june 1 grand opening
GOING FORWARD
On October 23, Christy and Jimmy will be hosting an open house for interested
investors. We ask that you plan to attend so we can answer any questions you may
have,meet our architect, and share our vision in person. Food and beverages will be
provided.
Feel free to email or call us if you have any questions,
Jim Bellavia Christy Steinm'leier
815-529-6786 231-218-5679,
jimmybreadl@ymaii.com theswankykitceien@gmail.com
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jimmybread and brew ruission 2016
SAMPLE BREAKFAST'::MENU
Smoked tomato and herb bread blt w/ pepper �,)acon, sliced tomatoes, bibb
lettuce and homemade citrus aioli
Egg in a hole Sammy w/ pork belly bread, bacon jam, arugula and white
cheddar
Deep fried wolnuts (waffle doughnuts) tossed `n a paper bag with cinnamon
sugar
Red velvet waffle sandwich w/grilled chicken ;alapeno sausage, maple aioli
and fried egg
Blue cornmeal biscuit sandwich w/ sliced avod.ado, scrambled egg and sun-
dried tomato, feta cheese and cilantro spread ,
Cast iron baked brown butter cinnamon rolls topped w/ a powdered sugar
glaze and sea salt
Chilaquiles in a skillet w/tomato and corn braised blue corn tortillas,
smoked pork, queso fresco, fried egg and avoq:ado cream
Avocado toast on seeded rye w/fried egg, sliced tomato, homemade
ricotta, olive oil, lemon zest and fresh basil
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jimmybread and brew ftcission 2016
SAMPLE LUNCH IVEtINU
House smoked turkey sandwich w/ avocado, Cheddar, bacon, arugula and
tomato jam on multi grain bread
Cuban sandwich on homemade bread w/ pulled pork, homemade pickles,
bacon jam, collard greens and Havarti cheese,
Roasted brisket sandwich on toasted French h�read w/ homemade
giardiniera and melted cheddar cheese
Grilled asiago cheese and butternut squash sandwich w/ caramelized
onions and sauteed kale
Fried Chicken sandwich on toasted brioche roll w/ melted white American
cheese, sliced tomatoes, greens and an artichoke, caper aioli
Pulled pig sandwich on porkbelly cheese roll V/Asian slaw and mustard
bbq sauce
Grilled pimento cheese on good old white brai- d w/tomato jam and smoked
bacon
BBLT melt on whole wheat w/ bacon, blue cheese, arugula and sliced
tomato
P:
jimmybread and brew rvission 2016
SAMPLE BEER MrPU
Homemade warm pretzels w/ beer cheese foridue
Fried pork belly cracklins tossed in a paper bag with our own Cajun spice
mix
Braised brisket and.smoked pulled pork with homemade Italian white
bread, beer mac & cheese, pickles and corn.n.'4sh
Specialty grilled local sausages w/ homemadE;.pickles, spicy mustard,
cannellini bean salad, salsa criolla and crustyr 'sourdough bread
Wisconsin cheddar pimento cheese spread wf beer seeded rye toast points
Artisan cheese board with spicy nuts, pickled grapes, granny smith apples
and crusty French baguette
Butcher charcuterie board w/a selection of sliced salami and meats, grain
mustard, pickles and warm parker house rolls;
Grass fed burger on a toasted brioche roll w/ arugula, pepper bacon, garlic
aioli, tomato chipotle jam and pimento cheese
Mini pulled pork sandwiches on parker house rolls w/ sriracha bbq sauce,
apple cider slaw and beer mac & cheese
jimmybread and brew mission 2016
the end...
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Christy Steinmeier
4934 Legacy Oaks Drive, Orlando, Florida 32839
231-218-5679 theswankykitchen@hotmail.com
OBJECTIVE
am seeking a positive,stable establishment with longterm employment. I promote an
environment where creativity,passion and dedication can �enurtured and expressed.With 20
years of gourmet and casual dining experience 1 would consider myself qualified for any culinary
management position you have available.
EDUCATION
Scottsdale Culinary Institute,Scottsdale,Arizona
Associate's Degree,Culinary Arts
SKILL SETS
* Extensive knowledge in culinary and food customer service with more than 20 years of
experience
* Strong relations with employees in a managerial setting
* Efficient problem solving
* Positive and passionate about food
* Expert in productivity while controlling food and labor cost
* Background in developing and creating trendy and authentic menus
* Computer proficient
PROFESSIONAL HISTORY
Cobbs Landing,Bluewater Beach Grill and The Original Tiki Bar, Fort Pierce,FL September 2009 -
June 2016
Catering Chef/ Executive Chef
* Effectively created menus for 3 restaurant kitchens over 7 million in combined sales
* Created new culinary preparations and techniques
* Headed initiative for kitchen related purchase and maintaining relations with vendor
* Performed with different food products to improve existing items
* Organized kitchen and training staff for maximum efficiency,quality and productivity
* Designed and implemented creative menus using fresh local ingredients
* Responsible for keeping expenses in check while preserving reputation for excellence and
quality
* In the last 3 years have won 1st,2nd and 3rd in iron chef competition.Won 1st place the last
2 years for an appetizer competitions.Won 1st and 2"d place the last two years for chowder
competition and people choice for the last 3 years,,
Berry Fresh Cafe, Port St.Lucie West,FL December 08-S4ptomber 09
Executive Chef/Partner
* Opening Chef that developed and executed new concept
* Managed the daily operations of the restaurant and provided hands on expertise in all
areas
Jan's Place at Ocean Village, Fort Pierce, FL October 07-May 08
Consultant/Catering
* Seasonal menu writing for catering and special events
* Working Chef for events
Buca Di Beppo,Jacksonville, FI June 06-October-07
Executive Chef/Chef Partner
* Managed kitchen and daily operations for a 300 seat family style restaurant
* Responsible for training new hires and retrained existing staff on food presentation
techniques
* Working chef that included scheduling,purchasing,controlled food and operational
expenses
Big Bay Cafe and The Swanky Kitchen Catering,Traverse City,Mi Jan 05-June 06
Owner/Executive Chef
* Opened a successful restaurant and catering business
* Received 4 out of 4 stars/Best Burger in Traverse City and Grand Traverse
Business Women Of the Month
* Running day to day operations(front of the house actions, labor cost,food cost,
payroll,financial,advertising and menu writing
Improv Kitchen,Chicago, ILJune 04-January 05
Executive Chef
* Featured on Metro Mix the T.V.show,WGN A.M. News, 190 North,Chicago
Tribune,Chicago Suntime,ABC Hungry Hound and The Red Eye
* Responsible for kitchen layout and created all menu items
* Hired and trained all kitchen employees
* Controlled all menu pricing,food ordering and inventories
Marshall Fields Chicago, IL
Executive Catering Chef
* In charge of all kitchen operations for the catering,department.
* Customized menus and planned special events for,up to 2000 people