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HomeMy WebLinkAboutPacket - 05/03/2010 - Revolving Loan Fund Committee city of mcHenry � 333 South Green Street a ' www.ci.mchenry.il.us McHenry,Illinois 60050-5495 ` Mayor's Office (815) 363-2108 Fax (815) 363-2119 Administration (815) 363-2100 REVOLVING LOAN FUND COMMITTEE MEETING Fax (815) 363-2119 Construction and City of McHenry Municipal Center Neighborhood Services (815) 363-2170 333 South Green Street Fax (815) 363-2173 Aldermen's Conference Room Finance Department (815) 363-2100 Monday, May 3, 2010, 6:30 PM Fax (815) 363-2119 Parks and Recreation (815) 363-2160 Fax (815) 363-3186 AGENDA Police Non-Emergency (815) 363-2200 Fax (815) 363-2149 Public Works (815) 363-2186 1 Call to Order Fax (815) 363-2214 2. La'a Coffee, 1237 North Green Street Mayor Susan E. Low 3. Adjournment City Clerk Janice C. Jones Treasurer Steven C. Murgatroyd Aldermen WARD 1 Victor A. Santi Mailed: April 28, 2010 WARD 2 Andrew A. Glab WARD 3 Jeffrey A. Schaefer WARD 4 Geoffrey T. Blake WARD 5 Richard W. Wimmer WARD 6 Robert J. Peterson WARD 7 Geri A. Condon MEMORANDUM TO: Mayor and City Council FROM: Chris Black, Finance Director FOR: May 3, 2010 Revolving Loan Fund Committee RE: Revolving Loan Fund Application—La'a Coffee Background. The Revolving Loan Program provides low interest loans to qualified existing and prospective businesses within the City of McHenry. The loan proceeds can be used to assist in the startup of a new business, expand an existing business, 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. 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. Because of the limited funds available, loans were restricted to $50,000. 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. The program requires loan applicants to complete a formal application which is reviewed by the McHenry Revolving Loan Fund Review Committee. The committee reviews loan applications, meets with the applicant, visits the site if necessary, negotiates terms, length and security of loans and evaluates requests with regard to compliance with program goals and objectives. Analysis. La'a Coffee has submitted the attached application to obtain a loan for the building improvements, equipment and furniture purchases, and working capital. The new coffee and sandwich shop will be located at 1237 Green Street and create 3 additional jobs in Downtown McHenry. Lori Adcock will attend the meeting to explain the loan application and answer inquires from the committee members. Staff is seeking a recommendation to, proceed with reviewing the creditworthiness of the applicant and determining the terms of the loan. First National Bank of McHenry, which will also service the loan, will assist the City with both of these tasks. City of McHenry Revolving Loan Fund Application I. Information on business to be assisted: a'a, Co ��ee Name of Business Street Address of Project ACNrl�izy Gty State Zip Code I-on �1��oc s- si y� &1 s15z/ Name of Principal in Charge Business Phone Cell Phone Q Home Address of Principal 'zNAy s-, &601130 City State Zip Code a , /z� (2 SS#of Principal DOB of Principal 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: I�A T- D 9-0 L CrS I �-7 Per r L== kzk+Vic .U' _ Lv r N n L', &0 s S►,'�) to i A b 6 W y F 3 u, C,, /A_:K7 Revolving Loan Fund Application Page 1 6. Information on Use of Project Funds: Land Acquisition $ Land Improvement $ Purchase and/or Remodel on Existing Building $ 7ow-co New Construction $ - --, Purchase and/or Repair Machinery& Equipment $ ge>to.o0 Purchase Furniture & Fixtures $ 1600. ©© Working Capital $,3app-CO Other Contingencies (Identify below): $ — Total Project Cost $ OCR Revolving Loan Fund Application Page 3 3. Information on Project Impact: Job Impact: # Existing Employees 2 #Positions Created J =Total Relocation (if yes, identify new location in space provided): Yes No 4. Information on Participating Financial Institution: NoN-r-- — SEc.-�— Name of Institution Street Address City State Zip Code Repayment Terms: S. History and�Description of Company and Principals: IJuS fnttw—SS Revolving Loan Fund Application Page 2 EMPLOYEE INCOME CERTIFICATION FORM (Job Retention) Date: 3 / 11�, / Zoid 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. For assistance, please see "�' Thank you. (Company Official) Step 1: Circle the size of your family. County yourself and all family members living at home. Family Size: 1 O 3 4 5 6 7 8 9 10 Family Income: Q-$50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250,000 $275,000+ Step 2: A. Indicate your 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 X No D. Are you handicapped? Yes No Revolving Loan Fund Application Page 4