HomeMy WebLinkAboutMinutes - 5/3/2010 - Revolving Loan Fund Committee REVOLVING LOAN FUND COMMITTEE MEETING
� Monday, May 3, 2010
Aldermen's Conference Room, 6:30 p.m.
In Attendance: Committee Members: Chairman Mayor Low, Alderman Blake, Alderman
Schaefer and Alderman Wimmer, Absent: None.
Also in Attendance: Alderman Santi, City Administratar Maxeiner, Assistant City Administrator
Hobson, Director of Finance Black and City Clerk Jones.
Also in Attendance: Lori Adcock La'a Coffee
Adam Adcock La'a Coffee
Mayor Low called the meeting to order at 6:30 p.m.
Discussion Re�arding Revolvin� Loan Application
La'a Coffee
City Administrator Maxeiner stated that the purpose of the Revolving Loan Program is to
provide low interest loans to qualified existing and 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 l�usiness, updating of an existing facility to make the business more competitive,
or to provide a» incentive for businesses to relocate to the City. He stated that the primary goal
of the program is job creation and expansion of the sales tax and property tax base.
�' City Administrator Maxeiner informed the Committee that the progra�m was established
in the late 1980's with funding from a State of Illinois grant. He stated that the program requires
loan applicants to complete a formal application, which is reviewed by the McHenry Revolving
Loan Fund Review Committee. The Committee reviews the loan application, meets with the
applicant, visits the site, if necessary, negotiates terms, length and security of the loan, and
evaluates each request with regard to compliance with the program's goals and objectives.
Director of Finance Black informed the Committee that La'a Coffee has submitted an
application to obtain a loan in the amount of$15,000 for the purchase of furniture, painting the
exterior of the building, sealing windows and some interior building improvements. It has been
determined that the landlord of the property is unable to assist with renovations.
City Administrator Maxeiner informed the Committee that following discussions with the
applicant, Staff feels confident that this applicant fits the parameters of the program and requests
the Committees recommendation to proceed with the review of the applicant's creditworthiness
and determination of the terms of the loan. He noted the funds were originally obtained from the
State of Illinois and are currently sitting dormant. Responding to an inquiry from the
Committee, Ci-:y Administrator Maxeiner stated that the interest rate is recommended by the
bank not the City of McHenry.
Ms. Adcock addressed the Committee. She stated that she is opening a coffee shop at
1237 North Green Street. She informed the Committee that she will be operating the
�' establishment, which will be open seven-days per week. Responding to an inquiry from
Alderman Blak�, Ms. Adcock indicated the shop will have a light continental breakfast, soup and
Revolving Loan Fund Committee Meeting
May 3, 20l 0
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sandwiches, in addition to coffee products. The restaurant and will create two to three part time
jobs in downtown McNenry.
Responding to an inquiry from Alderman Wimmer, Ms. Adcock stated she is hoping to
open for business on May 15, 2010, or as soon as possible. She indicated that no hours of
operation have yet been established.
Mr. Adam Adcock informed the Committee that La'a has a two-year lease with a four-
year option and a five- year option.
Responding to an inquiry from Ms. Adcock, Director Black informed her that the loan
process generally takes four to five weeks.
Motion by Schaefer, seconded by Blake, to direct Staff to proceed with reviewing the
creditworthine�s of the applicant and to work with representatives of First National Bank of
McHenry to determine the terms of the loan.
Aye: Mayor Low, Blake, Schaefer, Wimmer
Nay: None.
Absent: None.
Motion carried.
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Adiournment
Motion by Schaefer, seconded by Blake, to adjourn the meeting at 6:45 p.m.
Aye: Mayor Low, Blake, Schaefer, Wimmer
Nay: None.
Absent: None.
Motion carried.
Respectfully submitted,
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..J�Lfi'
Mayor`Low, Chairman
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