HomeMy WebLinkAboutMinutes - 7/17/2023 - Revolving Loan Fund Committee �
REVOLVING LOAN FUND COMMITTEE
�-' MEETING REPORT
Monday,July 17,2017
Municipal Center Classroom, 5:30 PM
In Attendance at Roll Call: Committee Members Present: Chairman Alderman Curry,
Alderman Sch�iefer Alderman Mihevc, and Mayor Wayne Jett.
Also in Attendance: Alderman Santi, 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 William
Busse represer.ting 1 S�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 bv Anthem R.E. LLC d/b/a
Smith's Central Garage located at 3315 Pearl Street for $70,000 to install a fire
suppression sVstem; and, proAosed recommendations to present the apqlication to
the full Citv 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 a fire 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
Hidder Pearl owes approximately$19,000, which will be paid back over the next 3 years.
�
Chairman Alderman Curry asked Mr. William Busse from ist 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 proj ections.
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 added the City is involved with the terms and conditions of the loans 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 recommend to
the City Council the award of 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
conditi��ns presented and with prime rate underwriting at 4.0%.
�
All vot�ng aye, motion carried.
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 ��''� 2017.
� ,
A1 e an S t Curry, Ch ' n
�.—
-2-