HomeMy WebLinkAboutAgenda - 5/3/2010 - Revolving Loan Fund Committee .. � • � 1�
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McHenry,Illinois 60(�50-5495 --
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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 A G E N D A
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
7anice C. Jones
Treasurer
Steven C. Murgatroyd
Aldermen
WARD 1
victor A. Santi Mail�d: 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, whic:h will also service the loan, will assist the City with both of these tasks.
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