HomeMy WebLinkAboutPacket - 03/25/2020 - City Council
The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of program s
and services in a customer-oriented, efficient, and fiscally responsible manner.
EMERGENCY MEETING NOTICE
Pursuant to the Open Meetings Act, 5 ILCS 120/2.02(a), notice is given that an emergency meeting of the
McHenry City Council will be held on Wednesday, March 25, 2020, at 6:00 p.m. In light of the current
COVID-19 public health emergency, this meeting will be held remotely only. The public can observe by
connecting on line at: https://zoom.us/j/208357050 The public can also to call in to the following
number: 1-312-626-6799. The Meeting ID is 208 357 050.
The purpose of the emergency meeting is to give an update of the Coronavirus Disease 2019 (COVID-19)
and to discuss opportunities for a local stimulus package.
AGENDA
Special City Council Meeting
Remote Zoom Meeting - Meeting ID: 208 357 050
March 25, 2020, 6:00 p.m.
1. Call to Order
2. Roll Call
3. Public Comment
If you wish to submit any public comment, please email: dmorefield@cityofmchenry.org
in advance of the meeting. The City will attempt to read such public comments during the
public commentary portion of the meeting. Any comments received during the meeting
will be provided in writing to the Council members after the meeting.
4. COVID-19 Update
5. Discussion of opportunities for local stimulus package
6. Adjourn
Posted: March 25, 2020
By: Monte Johnson
Derik Morefield, City Administrator
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Fax: (815) 363-2119
dmorefield@ci.mchenry.il.us
The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest
quality of programs and services in a customer-oriented, efficient and fiscally responsible manner.
SPECIAL CITY COUNCIL MEETING SUPPLEMENT
DATE: March 24, 2020
TO: Mayor and City Council
FROM: Derik Morefield, City Administrator
RE: Information for Special Emergency Meeting of the McHenry City Council
ATT: Draft Business Resiliency Microloan Program
The purpose of this emergency meeting is to give an update of the City’s response to the
Coronavirus Disease 2019 (COVID-19) and to discuss opportunities for a local stimulus package.
As Council is aware through the many daily updates that they have received from Police Chief
John Birk, the City Administration has been extremely proactive in responding t o the impacts of
COVID-19, through local efforts and in implementing the mandates directed to us from the
federal and state government. In summary, all City Departments continue to perform on a full
time or on call basis in carrying out the functions of the municipality while continuing to ensure
the well-being of employees. Special mention should be given to the Police Department and the
Water and Sewer Divisions of Public Works for maintaining the safety of residents and the City’s
most vital infrastructure during this time.
Since much has occurred in the past week, Mayor Jett and the City Administration wanted to
provide Council with this opportunity to provide input regarding the City’s response and to be
able to ask any questions that they may be hearing from their constituents.
As Council is aware, one step that was taken early on to respond to the potential financial impact
of COVID-19 on residents was the waiver of late-payment penalties on water/sewer payments
and the discontinuance of shutoffs resulting from non-payment. This will continue until COVID-
19 is behind us. The City Administration is continuing to research ways to reduce the financial
impact of COVID-19 to residents.
In addition, it is clear that the business interruptions being imposed by ongoing State and Federal
policies, which are intended to address COVID-19, will have significant negative impacts on the
financial stability of our small, local businesses. Therefore, the City Administration and Mayor
Jett have been working to identify to infuse short-term financial support that will provide liquidity
to small businesses. To this end, the following two initiatives are being proposed:
1. Small Business Resiliency Microloan Program (Draft Attached)
Goals:
o Assist businesses whose revenue has been affected by a major event;
o Keep businesses operating for the long-term;
o Assist businesses with working capital to meet necessary operating expenses;
o Provide short-term operating cash assistance;
o Determine how businesses are/have been impacted.
Requirements:
o Set aside a funding pool of $250,000 from the General Fund Balance for loan
program;
o Loans are for identified priority businesses affected by COVID-19;
o Must prove COVID-19 hardship on application with at least a 25% decrease in
revenue (year-to-date) from 2019 to 2020;
o Less than 50 employees;
o Individual business loans of up to $10,000;
o No interest, no payments on loans for the first year;
o 3% interest in second year if not repaid in first year.
The purpose of this program is to provide businesses with short-term access to funding for
businesses most impacted by COVID-19. As envisioned, the City would work directly with
businesses as distinct from the Revolving Loan Program, which is done in coordination with local
banks.
2. Deferment of Annual Liquor Licensing Fees for Class A (bars) and B (table service) Businesses
Liquor license applications and payments usually due by April 30th for next fiscal year;
Liquor license applications would still be required, for approval by City Council April
20th, but license fees would be deferred until expiration of Governor’s Executive Order
regarding sheltering in place;
Fees would be due within 30 days of Governor’s Executive Order expiration;
Fees would be prorated for duration of year;
Would allow businesses to maintain funds for operating capital in the short-term and
provide relief with reduced license fees for the year.
As stated above, the City Administration continues to research other ways to assist individual
residents and businesses most impacted by the current COVID-19 situation. However, the City’s
revenues will also be significantly impacted by this (sales tax, income tax, fines, fees, video
gaming, etc.) and, as such, we must remain aware of our own operating and capital needs.
The City Administration welcomes any other ideas that Council may have and are happy to
research other alternatives that can be implemented quickly to assist in recovery efforts.
H E A R T O F T H E F O X R I V ER C I T Y M C H E N R Y C I T Y O F M C H E N R Y S M A L L
B U S I N E S S R E S I L I E N C Y
M I C R O L O A N P R O G R A M
815.363.2110 (o)
815.363.2128 (fax)
815--347-6098 (cell)
dmartin@cityofmchenry.org
www.cityofmchenry.org
City of McHenry
333 S Green Street
McHenry, IL 60050
Attn: Douglas Martin Director of Economic
Development
H E A R T O F T H E F O X R I V ER C I T Y M C H E N R Y C I T Y O F M C H E N R Y S M A L L
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Desired goals to be achieved through this program
Assist businesses whose revenue has been affected by a major event
Keep businesses operating for the long-term
Assist businesses with working capital to meet necessary operating expenses
Provide short-term operating cash assistance
Determine how businesses are/have been impacted
Project Requirements under the program
No payments or interest related to these loans required in the first year.
After the first year, a 3% interest rate is applied.
Individual loans cannot exceed $10,000
Total funding would equal $500,000 and transferred to establish a new Special Revenue Fund for monitor-
ing this program.
Maximum loan term is five years
At the same time business registration and data for how they are being impacted will be collected
Businesses must have less than 50 employees
Businesses must have experienced a 25% decrease in revenue in 2020 (year-to-date) compared to the same
(year-to-date) time period in 2019 (average monthly revenue)
Application Process
Submittal of completed loan documents
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Priority Uses
Restaurants
Specialty stores
Barber Shops
Nail Shops
Grocery stores
Taverns
Assembly Uses
Ineligible Uses
Adult-oriented uses
Financial institutions
Professional Services
Towing facilities or junkyards
Residential
Car dealers
National Brand Stores
Franchise Businesses
Automobile Fueling Stations
Funeral Uses
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Business Information Sheet
Business Name:
Owner Name:
Business Phone Number:
Number of Employees:
Contact Name:
Contact Email:
Contact Phone:
Business Address:
Is the mailing address different from the business address?
Are you a minority, woman, veteran, or persons with disability owned business?
Industry:
Has COVID-19 economically impacted your business?
How many people did you employ PRIOR to COVID-19?
How many people did you employ AFTER COVID-19? (estimated)
Do you anticipate a loss of revenue for your business due to COVID-19?
Please list out any major contracts interrupted or lost in the future.
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Application Form*
2020
_________________________________
Loan Address
_________________________________
Name of Applicant/Company
_________________________________
Authorized Applicant Signature
_________________________________
(Print/Type name and title)
_________________________________
Date of Submittal
_________________________________
Requested Loan Amount
Prepared by the City of McHenry
Please submit application to: Douglas Martin, Director of Economic Development
333 S Green Street
McHenry, IL 60050
dmarrtin@cityofmchenry.org
*Personal and proprietary financial information requested as part of this application will be kept confidential. Documents, personal
and proprietary financial information requested will be kept on file with the City of McHenry for review only by the Mayor an d City
Council Members and selected staff. However, non -personal and non-proprietary in this application, along with the business plan,
will be distributed as part of the public record.
H E A R T O F T H E F O X R I V ER C I T Y M C H E N R Y C I T Y O F M C H E N R Y S M A L L
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1. Business Street Address *
2. City, State, Zip*
3. Industry Type (NAICS Code)*
4. Contact Information*
(Person/people responsible for this application and the actual implementation of the project; list all applicable)
Name(s):
Title(s):
Date of Establishment:
Sole proprietorship Partnership Corporation
Management*
Name(s):
Title(s):
Percentage Ownership:
Address:
Phone:
Cell phone:
Fax:
Email:
*List/provide all applicable information, state same as above if applicable or N/A for not applicable. Provide response to e ach question.
5. Describe the company/organization and how your organization/company has been negatively impacted including amount of loss.
6. Describe Employment and Wages*
Current # of Employees:
Skilled:
Semi-Skilled:
Unskilled:
New Direct Jobs Created:
New Direct Annual Payroll:
Percent Living in City of McHenry:
Percent Living in McHenry County:
Total Number of Employees:
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7. Required Attachments*
A. Business Plan (history of business and market information identifying company products and ser-
vices as well as major customers).
B. Personal Resume of Principals and Managers
C. Current Signed personal Financial Statements of Principals
D. Two (2) years of tax returns for principals of business
E. Twelve Month Cash Flow Statement (if start-up) company
F. Profit and Loss Statement (monthly over the past 3 years)
G. W-9 Form
H. Documentation evidencing existence of business entity and authorization to enter into loan:
a) For Corporations:
1. Articles and Certificates of Incorporation.
2. Secretary’s Certificate of Board of Directors’ Resolution Authorizing Loan.
b) For Partnerships:
1. Certificate of General or Managing Partner authorizing loan.
2. Certificate of Partnership (for Limited Partnership).
3. Partnership Agreement
c) For Sole Proprietorship:
Operating Licenses/DBA Certification.
d) For Land Trust:
1. Trust Agreement.
2. Letter of Direction to Trustee authorizing execution/acknowledgment of loan docu-
ments.
3. Disclosure of Beneficial Interests.
4. All Preliminary Documents for Guarantor under a, b or c above.
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Business Certifications*
I, the undersigned, hereby certify that is a business in good standing, authorized to do business
in Illinois and has no delinquent tax liabilities. No tax liens have been filed, including but not limited to, state, county , mu-
nicipal or federal against the business, any partners of the business, the majority shareholders of the business, or in the n ame
of any related business owned by the recipient.
I further certify I understand that all information contained within this application or submitted by me to the City of
McHenry on behalf of the business, is subject to the Freedom of Information Act, with the exception of all business and per-
sonal financial information which shall be maintained strictly confidential by the City of McHenry. I understand that all
completed applications are submitted for review and action by the City of McHenry City Council and that their decision is
final.
I further certify that is an equal opportunity employer and do not discriminate and do
not discriminate on the basis of race, creed, color, sex, religion, age, national origin or ancestry, physical or mental hand icap,
marital status or matriculation. I further certify I understand any monetary reimbursement provided to
may be subject to the Illinois Prevailing Wage Law and/or contingent on public funds being sought
may be subject to and/or contingent on paying prevailing wage, consistent with the Illi-
nois Prevailing Wage Law.
I certify that all information in this application, including all documentation and attachments, is accurate, complete and
true to the best of my knowledge and belief.
Sign and Print Name Title Date
Sign and Print Name Title Date
Sign and Print Name Title Date
Sign and Print Name Title Date
* All applicable parties must complete in order for application to be considered.
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