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Loan, Downtown RehabCITY OF DUBUQUE, IOWA MEMORANDUM April 12, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Downtown Rehabilitation Loan for Steve Althoff (243 Main Street); Guy Gard (356 Main Street); Ellen Willis (372 Main Street) and Larry Gee (378 Main Street) Finance Director Ken TeKippe is recommending the execution of Downtown Rehabilitation Loan Agreements for Steve AIthoff (243 Main Street), Guy Gard (356 Main Street), Ellen Willis (372 Main Street) and Larry Gee (376 Main Street). These are applications submitted as part of the recent amendment to the loan program which provides assistance to property and business owners on Main Street. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Ken TeKippe, Finance Director CITY OF DUBUQUE, IOWA MEMORANDUM April 9, 2001 To: Michael C. Van Milligen, City Manager From: Kenneth J. TeKippe, Finance Director ~ Re: Downtown Rehabilitation Loan for Steve Althoff (243 Main Street); Guy Gard (356 Main Street); Ellen Willis (372 Main Street) and Larry Gee (378 Main Street). Introduction The purpose of this memorandum is to request City Council approval of an operating loan from the Downtown Rehabilitation Loan Program to four Old Main business and property owners effected by the order to vacate the rear 30 feet of their property. Background On March 19, 2001 the City Council approved an amendment to the current Downtown Rehabilitation Loan Program to provide temporary assistance to Old Main property and business owners affected by the order to vacate the rear 30 feet of their properties. This program was recommended to assist the business and property owners in meeting monthly business expenses such as loan payments, lease payments and insurance and utility payments in an effort to prevent a potential business closure. At the direction of the City Council, city staff developed the terms of the program which include: zero percent interest until January 1, 2002 and three percent thereafter; monthly payments of principal and interest commencing January 1, 2002; a loan term of up to seven years with no prepayment penalty; and maximum loan amount of $25,000. The loan program will be administered through the Finance Department. On March 23, 2001 the proposed loan terms were reviewed at an Old Main property and business owner meeting. A f'mal copy of the application and terms was distributed to business and property owners on March 26, 2001. Discussion On April 3, 2001 the City of Dubuque received four applications for temporary assistance. The applications show qualifying expenses for the following business and property owners: Steve Althoff Guy Gard Ellen Willis Larry Gee Copies of the applications are attached. I have reviewed these applications and have found them to be in order. A total of $232,000 is available from the Downtown Rehabilitation Loan Program for this purpose. Recommendation I recommend that the City Council adopt the attached resolution approving loan requests in the amount of $69,000 for these business and property owners and authorizing city staff to prepare and execute the necessary loan documents. The resolution directs the City Manager to prepare and execute the final documents according to the terms and conditions of the attached commitment letter. Action The requested action is for the City Council to adopt the attached resolution. Cci Cindy Steinhanser, Parking System Supervisor Barry Lindahl, Corporation Counsel attachments RESOLUTION NO. 144-01 A RESOLUTION APPROVING DOWNTOWN REHABILITATION LOAN REQUESTS FOR STEVE ALTItOFF (243 Main Street); GUY GARD (356 Main Street); ELLEN WILLIS (372 Main Street) AND LARRY GEE (378 Main Street), Whereas, the City Council of the City of Dubuque, Iowa, has created a Downtown Rehabilitation Loan Program for the purpose of stimulating reinvestment in the Downtown Dubuque Urban Renewal District; and Whereas, the City Council amended this loan program to assist business and property owners effected by construction of the Third Street Parking Ramp; and Whereas, the loan applications from Steve Althoff (243 Main Street); Guy Gard (356 Main Street); Ellen Willis (372 Main Street) and Larry Gee (378 Main Street) meet the requirements set forth by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the application of Steve Althoff (243 Main Street); Guy Gard (356 Main Street); Ellen Willis (372 Main Street) and Larry Gee (378 Main Street) attached hereto, for participation in the Downtown Rehabilitation Loan Program are hereby accepted and approved. Section 2. That the City Manager is hereby authorized to execute, on behalf of the City of Dubuque, Iowa, all necessary loan documents and is further authorized to disburse loan funds from the Downtown Rehabilitation Loan Program, in accordance with the terms and conditions of the executed loan documents. Passed, approved and adopted this 16th day of April, 2001. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk City of Dubuque, Iowa Downtown Rehabilitation Loan Program APPLICATION FOR OPERATING EXPENSE REIMBURSEMENT (Revised 3/01) APPLICATION FORM PROPERTY ADDRESS: MAn,lNG ADDRESS: W~r:fferem from able) of' COMPANY PHONE: ~lq $56-q3 27 f CONTACT PERSON: Does applicant own thlg building? 'k/ Yes __ No If no, please provide ownership information and a copy of current lease agreement. TYPE OF BUSINESS OWNERSHIP: __ Sole Proprietorship __ Partnership Other: __ ~orporation ~tease list type below) Social Security # or Federal ID #: Requested loan amount: y'~ .~. ?' ~? ftc) c ~, - Please a~aeh the projected monthly expense reimbursement form to determine the requested loan amount. The final loan mount is subject to approval by the City council Funds will be dispersed on a munthly bezis upon submittal of supporting doeumentatlon. Loan pa_y~ents will be made directly to the applicant. Please describe how you imend to secure this loar~ Attach supporting documentation 2 City of Dubuque, Iowa Downtown Rehabilitation Loan Program APPLICATION FOR OPERATING EXPENSE REIMBURSEMENT (~vised 3/0 l) APPLICATION FORM PROPERTY ADDRE/SS: MAH JNG ADDRESS: (If c~fferent from above) COMPANY PHONE: Does applicant own this bui_lcling9 ~es No If no, please provide ownership infomtion and a copy ofcurrem lease agreement. TYPE OF BUSINESS OWNERSHW: ~ole Proprietorship __ Partnership __ Corporation (pleaSe list type below) Other: Social Security # or Federal ID #: Requested loan amount: Please attach the projected monthly expense reimbursement form to determine the requested loan amount. The final loan amotmt is subject to approval by the City Council. Fends will be dispersed on a monthly basis upon submittal &supporting doeumantafion. Loan payments will be made directly to the applicant. Vor= of oan secu : Please desc~be how you intend to secure this loa~ Attach supporting decumentatio~ 2 City of Dubuque, Iowa Downtown Rehabilitation Loan Program APPLICATION FOR OPERATING EXPENSE REIMBURSEMENT (Revised 3/01) APPLICATION FORM MAll JNG ADDRESS: (if ~fferent from above) Does applicant own this building? _~ Yes __ No If no, please provide ownership inforfnation and a copy of current lease agreemem. TYPE OF BUSINESS OWNERSHIP: Sole Proprietorship Partnership Other: __ Corporation (please list type below) Social Security # or Federal. ID #: ~L~ 7/~, T~) Requested loan amount: ~// /'~(~/~, ~ Please a~ch ~e ~oj~ mon~ly e~ re~b~em~t fo~ to d~e ~e r~u~t~ lo~ ~t. ~e ~al 1~ ~o~t is subj~ to ~oval by ~e Ci~ Co~cil. F~ ~11 ~ ~sp~ on a m~ly ~is ~on submi~ of suppo~g d~m~m. Lo~ pa~mm ~II ~ made ~e~y to ~e applicmt Fo~ of loan ~W: < ~ Plebe &sc~be how you i~e~ to sec~e th~ loaa ~ supposing ~m~t~ioa 2 City of Dubuque, Iowa Downtown Rehabilitation Loan Program APPLICATION FOR OPERATING EXPENSE REIMBURSEMENT (Revised 3/01) APPLICATION FORM PROPERTY ADDRESS: MAH JNG ADDRESS: (If different from above) COMPANY PHONE: ~lq ~ q~3 ~- FAX: CONTACT PERSON: L~f'5 V ~-~ Does wpplicant own this building? __ Yes ~/ No If no, please provide ownership information and a copy o£current lease agreement. TYPE OF BUSINESS OWNERSHIP: t// Sole Proprietorship __ Partnership Other: __ Corporation (please list type below) Social Security # or Federal Requested loan amount: 5~tO~ OSO , O0 Please attach the projected monthly expanse reimbursemant form to deterxnine the requested loan mount. The final loan amoum is subject to approval by the City Council. Funds will be dispersed on a monthly basis upon submittal of supporting doeumantafian. Loan payments will be made direedy to the applicant. Please describe how you intend to secure this l~ar~ Attach supporting documentcaion.' 2