Loan Program Old Main areaCITY OF DUBUQUE, IOWA
MEMORANDUM
March 15, 2001
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Loan Program for Old Main Property and Business Owners
Parking System Supervisor Cindy Steinhauser is recommending that the existing Downtown
Rehabilitation Loan Program be amended to provide temporary assistance to Old Main property
and business owners affected by the order to vacate the rear 30 feet of their properties due to
cracks on the backs of their buildings. This program would be established to help affected
owners meet monthly business exPenses, such as loans, leases, insurance and utility payments in
an effort to prevent a potential business closure. While the final terms o£the program have not
been established, in general it would include interest-free loans with no principal payments for
180 days.
I concur with the recommendation and respectfully request Mayor and City Council approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Parking System Supervisor
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 12, 2001
To: Mike Van Milligen, City Manager
From: Cindy Steinkauser, Parking System Supervisor
RE: Loan program for Old Main property and business owners
Introduction
The purpose of this memorandum is to request City Council approval for the creation ora
special loan program for Old Main property and businesses owners affected by the order
to vacate the rear 30 feet of their properties due to construction of the parking ramp.
Background
Rich Russell and I have been meeting on a weekly basis with Old Main property and
businesses owners affected by the order to vacate property that was issued by the City of
Dubuque on January 17, 2001. This order was issued to four properties along Main
Street: The Silver Dollar, Corporate Express, Ellen's Floral and the Monte Carlo. The
order significantly affected two businesses, the Silver Dollar and the Monte Carlo, as
their kitchens and restroom facilities are located in the rear of the buildings, thus
preventing them from operating their businesses. At the March 9, 2001 property and
business owner meeting the owner of the Silver Dollar indicated that he had exhausted all
of his reserves and was trying to decide whether or not to file bankruptcy. All of the
owners also indicated that their insurance policies do not cover business interruption or
building damage claims.
Discussion
Immediately following the March 9 meeting, Barry Lindahl, Les Reddick and I discussed
the possibility that assistance could be provided to the owners by the City. Les indicated
that he did not think that it would be a problem with the City's insurance were the City to
establish a special loan program to assist the owners with business costs. This program
would be established to help affected owner's meet monthly business expenses such as
loan, lease, insurance and utility payments in an effort to prevent a potential business
closure. The terms of the program have yet to be established, however, preliminary
discussion have included an interest-free loan program, with no principal payments for
180 days.
In reviewing the matter with Administrative Services Manager Pauline Joyce the source
of funds for this loan program would come from the Downtown Rehabilitation Loan
Program. This is an existing loan program operated out of the Community and Economic
Development department. Currently there is over $900,000 in this program with
$600,000 being requested by downtown businesses leaving a balance of $300,000
available. Finance Director Ken TeKippe has indicated that once the terms of this
program are established, it can be administered through the City's Finance department.
Request
The requested action is for City Council to direct city staff to develop a small business
loan program to assist Old Main business and property owners affected by the order
vacate.
Cci
Ken TeKippe, Finance Director
Pauline Joyce, Administrative Services Manager
Barry Lindahl, Corporation Counsel