HomeMy WebLinkAbout04-36 • - Resolution No. 04-36
RESOLUTION
APPROVING LOAN UNDER THE SPECIAL BUSINESS LOAN PROGRAM
FOR BUILDING IMPROVEMENTS IN ELGIN CENTER CITY
(Downtown Elgin Subs d/b/a Quiznos - 69 Douglas Avenue)
WHEREAS, the City of Elgin and certain banks and savings and loan institutions have
established a special business loan program for building improvement in Center City Elgin for
revitalization purposes; and
WHEREAS,Joe Follrath and Suzanne Pfaff have submitted an application to State Financial
Bank for a loan under the special business loan program; and
WHEREAS, State Financial Bank has approved this loan under the special business loan
program; and
WHEREAS, the loan is for the improvement of a type of business located in an area of the
Center City of Elgin which meets the eligibility requirements of the special business loan program;
and
WHEREAS, the loan application meets the general requirements concerning type of
financing, contractor bids of the special loan program; and
WHEREAS, the loan applicants meet the qualifying standards as set out in the special
business loan program; and
WHEREAS,it is determined that funds are available for the loan,the development plans are
compatible with the Center City development plans, and the application is in adherence to the
objectives and regulations of the program.
NOW, THEREFORE, IT IS RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS, that David M. Dorgan, City Manager, and Dolonna Mecum, City Clerk, are
hereby authorized to approve the special business loan agreement as set forth in the loan approval of
State Financial Bank attached hereto and made a part hereof by reference, and to make monthly
interest payments in the amount of 5%percent so long as the borrower continues to make regularly
scheduled loan payments.
s/Ed Schock
Ed Schock, Mayor
Presented: February 25, 2004
Adopted: February 25, 2004
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
CITY OF ELGIN CENTER CITY SPECIAL
BUSINESS LOAN AGREEMENT
THIS AGREEMENT is hereby made and entered into this 25th
day of February , 2004 , by and between the City of Elgin,
Illinois, a municipal corporation (hereinafter referred to as the
"City" ) , and Downtown Elgin Subs, d/b/a Quiznos, er
an Illinois corporation (hereinafter referred to as the "Owner" ) . "
WHEREAS, the City has established a City of Elgin Center
City Special Business Loan Program for building improvements in
the Center City area in an effort to stimulate expansion,
reinvestment and business retention, a copy of such Center City
Special Business Loan Program for building improvements being
attached hereto and made a part hereof as Exhibit A (hereinafter
referred to as the "Program" ) ; and
WHEREAS, pursuant to the Program, the City would pay a
portion of the financing costs for eligible building
improvements; and
WHEREAS, Owner is the owner of the property commonly known
as 69 Douglas Avenue, Elgin, Illinois, (hereinafter referred to
as the "Subject Property" ) which is located in the Center City
area as described in Exhibit A hereto; and
WHEREAS, Owner has applied for and obtained approval for a
loan agreement to finance the cost of the proposed building
improvements on the subject property, a copy of the subject loan
agreement being attached hereto and made a part hereof as Exhibit
B (hereinafter referred to as the "Subject Loan Agreement" ) ; and
WHEREAS, Owner has completed an application for
participation in the subject Program which identifies the
proposed improvements to the Subject Property, a copy of Owner' s
application for participation in the Subject Program being
attached hereto and made a part hereof as Exhibit C .
NOW, THEREFORE, for and in consideration of the mutual
promises, covenants and undertakings contained herein, and other
good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as
follows :
1 . That the foregoing recitals are hereby incorporated
into this agreement in their entirety.
2 . That Owner ' s application for participation in the
Program is hereby approved.
3 . That as long as the Owner continues to make regularly
scheduled loan payments on the Subject Loan Agreement and
otherwise complies with the terms of this agreement the City
agrees to pay an interest subsidy on the Subject Loan Agreement
as described in this paragraph. In such event, the City agrees
to pay an interest subsidy on the Subject Loan Agreement whereby
the City agrees to pay to the lender on a monthly basis for a
period of sixty (60) months, with a total amount not to exceed
$15, 738 . 45 . Monthly interest payments shall commence upon the
execution of this agreement and will cover the period from
August 1, 2003 through July 31 , 2008 .
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4 . In no event shall the interest rate exceed fifteen
(15%) percent . In no event shall the total loan amount exceed
$2 , 000 . The Owner shall make all other principal and interest
payments and all other payments on the Subject Loan Agreement .
It is expressly agreed and understood that the City is not and
shall not be deemed to be a party to the Subject Loan Agreement
or an obligor thereunder. This agreement in general , and the
City' s agreement to make interest payments hereunder in
particular, shall not be construed, and shall not be relied upon
by any party, including, but not limited to, the lender in the
subject loan agreement or any successor or assign thereof, to
require the repayment of any principal loan amounts, the
execution of any mortgage loan documents, or to otherwise act as
a guarantor on any loan agreements under any circumstances .
5 . That the terms, requirements and conditions of the
Program as set forth in Exhibit A hereto are hereby incorporated
into this agreement in their entirety. The City' s obligations
under this agreement including but not limited to the City' s
obligations to make continued interest payments are subject to
Owner' s ongoing compliance with all terms and requirements of the
program and this agreement .
6 . That upon completion of the improvements, and for a
period of five (5) years thereafter, Owner shall properly
maintain the improvements in their finished form, without
alteration or change thereto.
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7 . That nothing herein is intended to limit, restrict or
prohibit the Owner from undertaking other work in or about the
Subject Property which is unrelated to the improvements provided
for in this agreement .
8 . That this agreement may not be assigned without the
prior written consent of the City.
9 . Owner hereby agrees to hold harmless, defend and
indemnify the City from and against any and all causes of action,
suits, claims for damages and any and all other liability which
may arise out of or in connection with the proposed improvements
or other work at the Subject Property, or which may arise out of
or in connection with Owner' s or Owners ' agents, employees' ,
contractors' and assigns' negligent performance of any of the
terms of this agreement . In the event the provisions of this
paragraph are invoked, counsel for City shall be of City' s
choosing. The terms and provisions of this paragraph shall
survive any termination and/or expiration of this agreement .
10 . That this agreement shall not be construed to create a
partnership, joint venture or employment relationship between the
parties hereto.
11 . Owner shall also pay when due all other obligations for
the subject property including but not limited to payments on any
other loans, real estate taxes and insurance .
12 . That this agreement shall be subject to and governed by
the laws of the State of Illinois . Venue for the resolution of
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any disputes or the enforcement of any rights arising out of or
in connection with this agreement shall be in the Circuit Court
of Kane County, Illinois .
13 . That the terms of this agreement shall be severable .
In the event that any of the terms or provisions of this
agreement are deemed to be void or otherwise unenforceable for
any reason, the remainder of this agreement shall remain in full
force and effect .
14 . That notices regarding in this agreement shall be sent
to the parties at the following addresses :
To : City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Attention: City Manager (with a copy to
Corporation Counsel)
To : Downtown Elgin Subs
59 Douglas Avenue
Elgin, IL 60120
Telephone Number: 847-697-3240
Attn: Joe Follrath and Suzanne Pfaff
15 . This agreement constitutes the only agreement between
the parties hereto. There are no other agreements, either oral
or implied, in existence between the parties hereto. The terms
and provisions of this agreement shall not be amended unless such
amendments are in writing and, are properly executed by the
parties hereto.
16 . In the event of Owner' s breach of any of the terms of
this agreement, Owner shall refund to City the full amount of any
payments made by City to Owner or to any other entity on Owner' s
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behalf, including but not limited to, any lender, upon thirty
(30) days written demand. City shall thereafter be entitled to
any and all other rights and remedies as may be available to it
by law.
17 . This agreement shall terminate on ,
City may terminate this agreement for any or no reason upon
fourteen (14) days written notice . In the event City terminates
this agreement, City shall be under no further obligations
pursuant to this agreement .
IN WITNESS WHEREOF, the parties hereto have entered into and
executed this agreement the day and year first written above .
CITY OF ELGIN DOWNTOWN ELGIN SUBS, d/b/a
QUIZNOS
By �r� B
David M. Doman Joe Follrath
City Manager
Attest : Att t :
City Clerk Suz e Pfaff
V5y- Alf/4-A- Viiri 10V)4 &Pi-1J
F:\Legal Dept\Agreement\Center City Loan Agr-Quiznos 2-10-04.doc
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CITY OF ELGIN
Center City Special Business Loan Program
PURPOSE STATEMENT:
The City of Elgin and the Elgin financial institutions have
established a special loan program for building improvements and
business development in Center City Elgin in an effort to stimulate
expansion, reinvestment and business retention.
LOAN TERMS:
1 . Borrowers interest rate on their loan may not exceed 15%.
2 . The maximum loan is up to $200, 000 per building project .
3 . The term of the loan shall be based on a ten year amortization.
4 . The interest rate for the loan must be at or above the Prime
rate of interest
5 . The loan proceeds shall be used only for the acquisition or
lease of operating facilities, the purchase of equipment or
fixtures, space built out or inventory.
6 . Interest payments by the City shall be at the following rates
payable over a period of five years :
1st year - 90% of first year interest costs
nd year - 80% of second year interest costs
3rd year - 70% of third year interest costs
4th year - 60% of fourth year interest costs
5th year - 50% of fifth year interest costs
Notwithstanding anything to the contrary in this loan program
the maximum amount of interest payments by the City for any loan
shall be in the maximum amount of $92 , 365 . 29 .
7 . Separate bill from the lending institution shall be sent to the
borrower for principal payments plus the applicable interest
and to the City for the applicable interest rate .
8 . The financial obligations of this agreement shall be subject to
available budgeted funds .
11-24-03
•
ELIGIBILITY REQUIREMENTS :
To be eligible to apply for this special loan program, the applying
business must satisfy both of the following criteria :
1 . Geographic : The business must be located in Center City
Elgin, in the areas outlined in Appendix A.
2 . Type of Business : The business must be engaged in
retailing, wholesaling, distribution, professional
services, technology industry and other types of general
commercial and retail lines of business consistent with
those business uses identified as desirable in the
adopted Riverfront/Center City Master Plan.
GENERAL REQUIREMENTS:
1 . This program does not include financing for furniture,
standard office equipment (i . e . personal computers and
related equipment) or operating capital .
2 . Building improvements must be done by an independent
contractor. Agreement with contractor must be supported
by two different contractor bids .
3 . Any business which is approved and is to receive benefits
under this Center City Special Business Loan Program must
execute a written agreement with the City in a form as
directed by the City which shall include the terms
necessary to comply with the provisions of the program
requirements and which shall include an agreement by such
business to complete building improvements within a
specified time period and to thereafter remain in
business at the specified location for a period of not
less that three years . If the business is required to
vacate the Center City location due to action directed or
supported by the City, the business must relocate within
the Center City in order to retain the benefits of the
Business Loan Program.
4 . Participants in the Center City Special Loan Program
must provide annual financial statements to the City
during participation in the program.
QUALIFYING STANDARDS:
1 . Applicant business and owner must have an acceptable
credit history with a record of timely loan payments .
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2 . Business profits and cash flow must be sufficient to
support loan payments in accordance with the customary
loan (with the loan to value ratio not to exceed 75% to
80%) unless other collateral or financial strength is
provided.
APPLICATION PROCESS:
1 . Eligible businesses should complete the loan program
application form and submit it to the bank, savings and
loan official, or other pre-approved lending program.
2 . Once the loan is conditionally approved and structured by
the lending institution, the lender shall complete a loan
proposal for submission to the City of Elgin for final
approval .
3 . Approval by the City of Elgin will be conditioned upon
(1) available funds, (2) compatibility with Center City
development plans, (3) adherence to the objectives and
regulations of the program and (4) entry into a program
agreement with the City in the form as directed by the
City.
4 . The lending institution and business applicant may elect
to proceed with a conventional market rate loan in the
event that the City of Elgin denies the special loan
program application.
SUPPLEMENTAL LOAN AMOUNTS :
If a lending institution approves subsequent increases in the
original loan amount approved for a project under this program,
application can be made for an interest subsidy on the increment .
Provision of the subsidy is subject to approval by the City of
Elgin. The City of Elgin is under no obligation to provide benefit
beyond that previously approved.
ADDITIONAL TERMS AND CONDITIONS:
The City shall make monthly interest payments so long as the
borrower continues to make the regular scheduled loan payments and
otherwise complies with the terms of the agreement to be entered
into between the City and the borrower. If the borrower fails to
pay all required loan payments or otherwise fails to comply with
the terms of the agreement to be entered into with the City, the
City will cease paying.
NO VESTED RIGHTS :
The provisions of this program are intended to provide guidelines
for considering applications for businesses that are seeking to
participate in the Center City Special Business Loan Program. The
City Council of the City of Elgin, in its sole and exclusive
discretion, shall determine whether to provide any of the
incentives contemplated in this program after duly considering the
costs incurred by the City of Elgin for providing the incentives
and after considering the relative gain derived by the public from
those incentives . The City Council of the City of Elgin further
expressly reserves the right and option to decide at any time
whether or not to provide continued or additional funding for this
program.
The creation or existence of this program shall not be construed to
create or provide any vested rights in any person or organization
to obtain approval of a program application, a program agreement or
any incentive, grant, rebates or funding thereunder.
APPLICATION FOR
CITY OF ELGIN
CENTER CITY SPECIAL BUSINESS LOAN PROGRAM
Date :
Loan Amount Requested: $ Total Project Cost : $
Company Name :
Address :
Phone :
Owner' s Name (s) :
Type of Business :
Purpose of Loan:
Does this loan represent an addition to a loan previously approved
for this project? YES NO
If yes, please indicate original amount, date approved and total
loan amount with proposed increment .
Original loan approved: $
Date Approved:
Total loan with proposed increment : $
BREAKDOWN OF PROJECT
AMOUNT CONTRACTOR DESCRIPTION OF WORK
1 . $
2 . $
3 . $
4 . $
r
OTHER CONTRACTOR BIDS OBTAINED
DESCRIPTION OF PROPERTY:
(Size & Description)
APPRAISED VALUE :
OWNER IN TITLE :
EXISTING MORTGAGE
ON PROPERTY:
OTHER INFORMATION REQUIRED INITIALLY:
1 . Business Year end Financial Statements - last two years .
2 . Business Interim Financial Statement - current year-to-date.
3 . Personal Financial Statement - current .
4 . Copy of Contractor Estimates .
5 . Corporate and/or Personal Tax Returns may be required.
6 . Appraisal of property may be required.
The undersigned applicant hereby certifies that the loan funds
obtained shall be used for the purposes outlined in this
application.
DATE
Applicant Business
BY:
Owner
Please deliver this completed application to the bank or savings
and loan official of your choice . They will process your credit
application and submit a loan proposal to the City of Elgin for
final approval .
Revised 11-24-03
12/24/03 10:01 FAX 847 742 2788 ELGIN COMMERCIAL BANKING 1J002/002
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Mate Financial Bank
December 22, 2003
City of Elgin
Attn: Ray Moller
150 Dexter Court
Elgin IL 60120
Regarding: Downtown Elgin Subs
D/B/A Quizno's Subs
Hello Ray:
Suzanne Pfaff and Joseph Follrath have a loan at State Financial Bank.
The Borrower is Downtown Elgin Subs, with Suzanne Pfaff and Joseph
Follrath as signors and guarantors.
The loan is a term loan, originally approved 1-17-02, renewed 7-31-03
with a balance of$110,000,00, current balance of$106,123.39, payment is
$1,170.73,maturing 7-31-08. The payment is auto-debited from their
business checking each month. This loan has been paid as agreed.
Please contact me at 847-214-2453 if you need any additional information,
or have any other questions.
Th you.
J L, Sandman
Commercial Banking Associate
Bartlett,IL•Brookfield,WI• Burlington,WI •Crystal Late,IL• Elgin,IL•Elkhorn,WI •Fox Point,WI •Glendale,WI •Glenview,IL•Greenfield,WI
Gurnee,IL•Hale,Corner',WI • Libertyville,IL•Milwaukee,WI •'Muskego,WI •New Berlin,WI •Richmond,IL • Roselle,IL•South Elgin,IL
Waterford,WI•Waukesha,WI•Waukegan,II •Whitehall Bay,WI
MEMBER I.U,1.C. EQUAL HOUSING LENUEE
, •/its !•
OTHER CONTRACTOR BIDS OBTAINED
DESCRIPTION OF PROPERTY: /tVe- . ` (
L I L (c c�l z U
1 � GL�,�
(Size & Description)
logo la c
APPRAISED VALUE : - --
OWNER IN TITLE : ��j �E �C� fray
EXISTING MORTGAGE
ON PROPERTY:
OTHER INFORMATION REQUIRED INITIALLY:
1 . Business Year end Financial Statements - last two years .
2 . Business Interim Financial Statement - current year-to-date.
3 . Personal Financial Statement - current .
4 . Copy of Contractor Estimates .
5 . Corporate and/or Personal Tax Returns may be required.
6 . Appraisal of property may be required.
The undersigned applicant hereby certifies that the loan funds
obtained shall be used for the purposes outlined in this
application.
DATE
Applicant Business
BY:
Owner
Please deliver this completed application to the bank or savings
and loan official of your choice . They will process your credit
application and submit a loan proposal to the, City of Elgin for
final approval .
Revised 11-24-03
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APPLICATION FOR
CITY OF ELGIN
CENTER CITY SPECIAL BUSINESS LOAN PROGRAM
Date :
Loan Amount Requested: $ // 1,-, 9/02*r'otal Project Cost : $ 151 110 16 , 1 3
Company Name : gtortizn.4.34in 5,45 Z�c c7✓� C,2„ian0 (S
Address : 1 � u ��5 Ave Cly,4, lL 6OfZD
Phone : g — 6 9 7— 3 0
Owner' s Name (s) : Joe o(rcu
Type of Business : i(Q S
Purpose of Loan: 62„;
Does this loan represent an addition to a loan previously approved
for this project? YES X( NO
If yes, please indicate original amount, date approved and total
loan amount with proposed increment .
Original loan approved: $ '-"" N/A--
Date Approved: Wipr
Total loan with proposed increment : $
BREAKDOWN OF PROJECT
AMOUNT CONTRACTOR DESCRIPTION OF WORK
1 . $ 63; j1/ 2- `� /1/14 c 6" C t t.,., ,p ert_
2 . $ 7 g.3 V, Sig V lALereP
jOhil 1,04 eh .. t P/6 4,5 for -s o('.e-
3 . $ 0 L11. 7 Lytt,,�d 1 fd.., n k', lur►t "'41
. a
4 • $ 11/97. ® 3.
a5 Si' hn°�1
5 $ 55-, q3O.0 U seido cx '�,� iu p 4.11 vc�7 "
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ill it' .k �.e.
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tr, 0Q3st,i h
5 I/0641°2 / "spv?-0/ \-11 C') 1 -1/9 "# 6h1i. C-?
o 0 •5 / • zi
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Asian CPA Services 847 7268466 12/01/03 01i16pm P. 002
Store#2693 DOWNTOWN ELGIN SUBS, INC. 1
59 Douglas Ave. d/b/a QUIZNO'S CLASSIC SUBS
Elgin,IL 60120 STATEMENT OF REVENUE AND EXPENSES
INCOME TAX BASIS
FOR THE PERIOD ENDING OCTOBER 26, 2003
CURRENT PERIOD YEAR TO DATE
Sep 29-Oct 26,03 % Jan 1-Oct 26,03 %
NET SALES
3010-01•In House Sales $ 21,957.06 100.00% $ 165,650.42 100.00%
TOTAL NET SALES 21,957.06 100.00% 165,650.42 100.00%
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COST OF FOOD SALES
4010-01-Food Cost 5,841.25 26.60% 43,765.26 26.42%
4150-01•Paper Cost 659.92 3.01% 5,122.29 3.09%
TOTAL COST OF FOOD SALES 6,501.17 29.61% 48,887.55 29.51%
COST OF LABOR-DIRECT
4500.01•Wages-Management 1,290.00 5.88% 3,590.00 2.17%
4610-01•Wages-Crew 3,831.83 17.45% 26,931.07 16,26%
4510-02•Hourly-Crew Off 0.00 0.00% 0.00 0.00%
Total COST OF LABOR-DIRECT 5,121.83 23.33% 30,521.07 18.42%
COST OF LABOR-INDIRECT
4540-01•Payroll Tax Expense 0.00 0.00% 26.42 0.02%
4545-01•Employer's Share FICA 391.82 1.78% 2.334.87 1.41%
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4546-01•SUTA 169.01 0.77% 970.30 0.59%
4547-01•FUTA 37.49 0.17% 240.69 0.15%
4580.01•Workers Compensation Insurance 0.00 0.00% 1,704.08 1.03%
Total COST OF LABOR-INDIRECT 598.32 2.72% 5,276.36 3.19%
TOTAL COST OF LABOR 5,720.15 26.05% 35.797.43 21.61%
GROSS PROFIT 9,735.74 44.34% 80,965.44 48.88%
TOTAL FPL 11,623.00 52.94% 79,408.62 47.94%
ADVERTISING EXPENSE
5000-01-Advertising-Fund 794.88 3.62% 6,082.10 3.67%
6011-01•Advertising-Promo Materials 132.75 0.60% 2.464.01 1.49%
5013-01•Combo Discounts 340.18 1.55% 2,378.21 1.44%
5020-01•Promotional-Coupon 1.206.21 5.49% 7,857.68 4.74%
5040-01•Gift Certificates (20.00) -0.09% (13.06) -0.01%
5060-01•Complimentary 269.80 1.23% 1,091.21 0.66%
Total ADVERTISING EXPENSE 2,723.82 12.41% 19,860.15 11.99%
LOCATION EXPENSE I
5100-01•Insurance-General 0.00 0.00% 657.80 0.40%
5360.01•Security Expense 0.00 0.00% 0.00 0.00%
5480-01•Taxes and Licenses 0.00 0.00% 170.00 0.10%
5490-01•Telephone Expense 159.95 0.73% 971.05 0.59%
5500-01•Trash Removal 0.00 0.00% 413.27 0.25%
5530-01•Maintenance and Repair 40.00 0.18% 574.97 0.35%
5940-01•Utilities 770.35 3.51% 5.859.25 3.54%
6920-01•Rent And Common Area Maintenanc 1,479.00 6.74% 10,059.60 6.07%
Total LOCATION EXPENSE 2,449.30 11.15% 18,705.94 11,29%
TrE ACCOMPANYING COMPILATION REPORT IS AN INTEGRAL PART OF THESE STATEMENTS
Asian CPA Services 847 72813466 12/01/03 01:18pm P. 003
Store#2693 DOWNTOWN ELGIN SUBS, INC. 2
59 Douglas Ave. d/bla QUIZNO'S CLASSIC SUBS
Elgin,IL 60120 STATEMENT OF REVENUE AND EXPENSES
INCOME TAX BASIS
FOR THE PERIOD ENDING OCTOBER 26,2003
CURRENT PERIOD YEAR TO DATE
Sep 29-Oct 26,03 % Jan 1-Oct 26,03 %
GENERAL EXPENSE
• 5050-01•Credit Card Expense 78.62 0.36% 559.68 0.34%
5085-01 •Dues and Subscriptions 0 D0 0.00% 290.00 0.18%
5230.01 •Operating Services 20.90 0.09% 620,34 0.37%
5340.01 •Office Supplies 0.00 0.00% 247 07 0.15%
5350-01 •Cash(Over)or Short (8.26) -0.04% (363,02) -0.22%
5380-01-Bank Charges 3.00 0.01% 35.00 0.02%
5520-01 -Travel 0.00 0.00% 0.00 0.00%
5530-01 •Meals-Management 62.80 0.29% 332.98 0.20%
5540-01 •Meals-Employees 204.83 0.93% 1.923 35 1.16%
5780-01•Pest Control 0.00 0.00% 485.00 0.29%
5800-01•Uniform Expense 17.83 0.08% 352.06 0.21%
5810-01 •Laundry Expense 98 83 0.45% 552 91 0.33%
5840-01 -Freight 25.00 0.11% 800.00 0.48%
5870-01 •Operating Supplies 38.64 0.18% 2,148.02 1.30%
6220-01•Professional Services 300.00 1.37% 2,325.00 1.40%
i 6222-01 •Other Professional Services 0 00 0.00% 960 00 0.58%
' 6230-01 -Postage Expense 2.40 0.01% (4.92) 0.00%
i 6250-01 •Royalty Foos 1,391.03 6 34% 10,643.67 6 43%
6800-01-Food Waste and Spoilage 147 91 0.67% 1,098.17 0.66%
6810-01-Equipment Lease/Rental 135.30 0.62% 1,200.51 0.72%
Total GENERAL EXPENSE 2,517.93 11.47% 24,205.62 14.61%
OTHER EXPENSE 1(NCOME)
3160-01 •Other Income 0.00 0.00% 0.00 0.00%
3170.01•Sates Tax DIscount/Adj (26.17) -0.12% (421.48) -0.25%
7820-01•Depreciation(Income Tax Basis) 5,187.76 23.63% 36,265.17 21.89%
7830-01 -Amortization 548.25 2.50% 3,837.75 2.32%
7925-01 •Interest Expense 929.04 4.23% 4,595.41 2.77%
Total OTHER EXPENSE f(INCOME) 6,638.88 30.24% 44,276.85 26.73%
TOTAL EXPENSE 26.551.25 120.92% 191,733.74 115.75%
EXCESS(DEFICIENCY)OF REVENUE
OVER EXPENSES-INCOME TAX BASIS $ (4,594.19) -20.92% $ (28,083.32) -15.75%
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THE ACCOMPANYING COMPILATION REPORT IS AN INTEGRAL PART OF THESE STATEMENTS
QUIZNO'S RESTAURANT PRO-FORMA MODEL
,SUMMARY INCOME STATEMENT
ONE TWO THREE
Number of weeks open 52.2 52.0 53.0
In the first year of operation the system calculates as close to an exact number of operating weeks as possible and will not return exactly 52 weeks.
Total sales $ 209,665 100.0% $ 215,388 100.0% $226,406 100.0%
Cost of food 56,609 27.0% 58,155 27.0% 61,130 27.0%
Cost of paper 4,193 2.0% 4,308 2.0% 4,528 2.0%
Total cost of sales 60,803 29.0% 62,462 29.0% 65,658 29.0% . .
Salaries and wages 64,869 30.9% 65,077 30.2% 66,810 29.5%
Employee bonus 1,048 0.5% 1,077 0.5% 1,132 0.5%
Payroll related costs 20,692 9.9% 20,727 9.6% 21,077 9.3%
Advertising Fees 8,294 4.0% 8,521 4.0% 8,957 4.0%
Advertising -in house 1,048 0.5% 1,077 0.5% 1,132 0.5%
Advertising -coupons 1,048 0.5% 1,077 0.5% 1,132 0.5%
Insurance- proprty&liab. 2,409 1.1% 2,400 1.1% 2,446 1.1%
Operating services 2,242 1.1% 2,234 1.0% 2,277 1.0%
Other costs 6,760 3.2% 6,741 3.1% 6,877 3.0%
Telephone expense 1,808 0.9% 1,801 0.8% 1,836 0.8%
Meals-employees 1,048 0.5% 1,077 0.5% 1,132 0.5%
Promotional food - 0.0% - 0.0% - 0.0%
Uniform cost 964 0.5% 961 0.4% 979 0.4%
Laundry expense - 0.0% - 0.0% - 0.0%
Repairs and maintenance 1,206 0.6% 1,201 0.6% 1,224 0.5%
Operating supplies 210 0.1% 215 0.1% 226 0.1%
Utilities 12,055 5.7% 12,009 5.6% 12,240 5.4%
Professional fees 1,740 0.8% 1,740 0.8% 1,740 0.8%
Royalty fee 14,515 6.9% 14,911 6.9% 15,674 6.9%
Food waste and spoilage 3,954 1.9% 2,154 1.0% 2,264 1.0%
Percentage rent - 0.0% - 0.0% - 0.0%
Rent and CAM charges 16,800 8.0% 16,800 7.8% 16,800 7.4%
Total expenses 223,516 106.6% 224,262 104.1% 2.31,614 102.3%
Operating income (13,851) -6.6% (8,874) -4.1% (5,207) -2.3%
Interest expense (9,482) -4.5% (8,758) -4.1% (7,981) -3.5%
Depreciation&amortization (11,745) -5.6% (11,745) -5.5% (11,745) -5.2%
Net income before taxes $ (35,078) -16.7% $ (29,376) -13.6% $ (24,933) -11.0%
Net income before taxes $ (35,078) -16.7% $ (29,376) -13.6% $ (24,933) -11.0%
Plus depreciation&amort. 11,745 5.6% 11,745 5.5% 11,745 5.2%
Less principal payments (10,024) -4.8% (10,748) -5.0% (11,525) -5.1%
Net cash flow before taxes $ (33,357) -15.9% $ (28,380) -13.2% $ (24,714) -10.9%
Financial Plan-Downtown Elgin1l/29/2003 CONFIDENTIAL-FOR INTERNAL USE ONLY
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\NO: VACALA Construction, Inc.
13900 West Polo Trail Drive•Lake Forest, IL 60045•Ofc. (847)918-1045•Fax(847) 918-1054•www.vacala.com
PROPOSAL SUBMITTED TO: Date: October 15, 2002
Attn.: Susanne Path Project: Quizno's -Elgin
59-61 Douglas Ave
Name: Quizno's Subs - Store #2693 Elgin Il, 60120
59-61 D d uglas Ave
Elgin II, 60120
Architect: Warren Johnson Architects,Inc
Phone: (847) 421-1598 Date of Plan: 10/1/2002
Fax: Addendum's N/A
CARPENTRY PROPOSAL
We Propose to complete the carpentry work in accordance with the drawings dated_ 10/1/02 for the sum of:
NIN Y1NINE-THOUSAND-SIX-HUNDRED-FORTY-FOUR-($99,644.00)-DOLLARS.
(Refer to pages 2 thru 4 for terms and conditions of this proposal)
Alternate Bids
Thank you fir allowing Vacala Construction-Carpentry Division to be of service to you and your firm
Please keep s;i,ill mind for your future project needs.
cerely
11/A1 I
I .,4 0 ,
Terry B., 1 s
Vice Presi.e t'
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11\0 VACALA Construction, Inc.
13900 West Polo Trail Drive•Lake Forest, IL 60045•Ofc. (847)918-1045•Fax(847) 918-1054•www.vacala.com
October'15, 2002 Quizno's - Elgin Page 2 of 4
Bid Break Down
Concret $778
Rough Cprpentry $1,123
Finish C rpentry $2,043
Casewor $17,473
Caulkin $743
Hollow tliframes and Doors $4,310
Wood a d Pl4stic Doors and Frames $1,535
Finish H rdware $1,863
Drywall $8,986
Ceramic Tile $11,554
Acoustic Ceiling $7,355
Painting $6,340
Room Si nag $228
Fire Pro ection Specialites $143
Toilet A'cessories $1,550
Plumbin. $2,346
Electric. f $8,700
VCI Fee
$22,575
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♦
VACALA Construction, Inc.
Mire 13900 West Polo Trail Drive•Lake Forest, IL 60045•Ofc. (847)918-1045•Fax(847) 918-1054•www.vacala.com
October 15, 2002 Quizno's - Elgin Page 3 of 4
SPECIFIC TERMS & CONDITIONS OF PROPOSAL
Inclusio i s:
* Furni-h and install Sealant for exposed concrete floor
* Furni-h and install of all rough carpentry
* Furni•h and install all Finish carpentry not provided by owner
* Instal, all inish carpentry provided by owner
* Furni-h and install all Casework/Equipment not provided by owner
* Instal, all Casework provided by owner
* Furni-h and install all caulking at toilets, urinals,hand sinks, 3-compartment prep sinks, mop basi
and all ;,ernianent countertops and cabinets
* Furni-h d install all hollow metal door frames
* Furni•h d install all hollow metal doors
* Furni•h' d install all finish hardware
* Furni•h d install Eliason swing door and associated hardware
* Furni•h' I d install all Aluminum doors and hardware
* Furni'h'arid install all drywall (including framing and taping)
* Furni•h'. d install all floor tile
* Furni'h'. d install Acoustic ceiling tiles
* Furni h d install all paint and wall coverings
* Furni h d install ADA room signage
* Furni.h d install fire protection specialties
* Furni.h'. d install all toilet& bath accessories
* Furni'.h'. ,d install all plumbing fixtures not provided by owner
* Instal all .lambing fixtures provided by owner
* Furni.h:. U d install all necessary electrical work
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• •
• a ACALA Construction, Inc.
13900 West Polo Trail Drive•Lake Forest, IL 60045•Ofc. (847)918-1045•Fax(847)918-1054•www.vacala.com
October. l!5, 2002 Quizno's - Elgin Page 4 of 4
SPECIFIC TERMS & CONDITIONS OF PROPOSAL
Exclusi ns:
� I
* The furnishing of all equipment listed as "owner provided" on the equipment schedule
* The f irnishing of all Millwork listed as "owner provided" on the equipment schedule
* Building Permit Fees
* Premium time
* Builders Risk Insurance
* Any/ all items indicated to be furnished, installed or otherwise provided by landlord
* Anything not specifically indicated as included on page 3 of this proposal
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CONSTRUCTION BID FORM Q2002
This revue t for bid breakdown is required to be completed by the general contractor for the
materia s and services for tenant improvements to construct a Quizno's restaurant for the location
listed b:low in accordance with the provided drawings and specifications.
project am : 6;1117Z/ D CLA-SSi' cvY3S
project . dd ss: 'j— 6 1 rh O k L/13 A\J` store number
city: •tate: .IL
,,
riff'A
BIDS ARE DUE IN THE OFFICE OF: StJyAn►NF RA F1c
name
I 741 �x1E2 DIZ rA-� ?� ux cr r 77 6e I ► d
I addfess state zip code
CiOlj) 42 .- 1 19
phone number fax number
BIDS ARE DUE NO LATER THEN TIME DATE
(FACSIMILE BIDS WILL BE ACCEPTABLE PROVIDED HARD COPY IS SENT BY THE FOLLOWING DAY)
General dontractor Name: Pf 42 i"l � coN sTie u cr i Cry ,
I
NOTES:
1.All iterns!must be shown without the general contractors overhead and profit except on the line
specifically forthis item.
2. Subcontra,tor's overhead and profit shall be included in each respective item if performed by a
subcontracto .
3. Subm' the;bid in sealed envelope marked"Confidential Bid".
4. In the -vent that you elect not to bid, please inform project owner promptly in writing to enable a current
list of ap,rov d bidders to be maintained.
5. Descr be iscellaneous item when used.
6. If not -upp'ed at the time of the bidding then contractors are required to submit with this bid a properly
executes CO' tractors Qualification Statement, AIA Document A305, 1986 edition.
5. Break'ow s not conforming exactly to the bid breakdown or bids submitted without the bid breakdown
will be di.qu ified.
6.A con..truIc ion schedule based on 6 week build out will be provided with this bid.
1
7. If usi g th s Microsoft Excel version of Construction Bid Form Q2002 it is the responsibility of the
person rep ring the bid to verify accuracy of formulas,addition,final cost, etc..
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• " 'I4 DiVI ION I GENERAL CONDITIONS ENTER VALUE
01000 general conditions $1,800.00
01010 summary of work so.00
01101 supervision _ $2,200.00
01630 national account materials so.00
01700 contract close out so.00
01815 building permit $o.00 by Owner
profit and overhead $4,000.00
miscellaneous $o.00
GENERAL CONDITIONS SUB-TOTAL $8,000.00
DIVISION I SITE WORK I ENTER VALUE
0200C s to work $o.00
0205C demolition $o.00
0220C structure excavation and backfilling $o.00
02295 miscellaneous demolition $o.00
0251 C walk, road and parking paving or repair so.00
0252E curbs $o.00
02800 'site improvements $o.00
0295C landscaping plant materials $o.00
$o.00
SITE WORK SUB-TOTAL $o.00
DIVISION I CONCRETE I ENTER VALUE
0300c concrete $o.00
03101 !concrete material $o.00
03100 concrete formwork so.00
03200 concrete reinforcement $o.00
slab patching so.00
miscellaneous $o.00
CONCRETE SUB-TOTAL so.00
I DIVISION I MASONRY ( ENTER VALUE
04000 asonry $o.00
iscellaneous $o.00
MASONRY SUB-TOTAL $o.00
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DIVISION I METALS I ENTER VALUE I
05000 metals so.00
05720 steel railings and handrails so.00
miscellaneous so.00
METALS SUB-TOTAL $o.00
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DIVISION I WOOD AND PLASTICS ENTER VALUE
_06000 I wood and plastics so.00
06010 lumber _ so.00
06100 rough carpentry _ $5,400.00
06200 finish carpentry $6,200.00
06220 millwork $0.00
06240 plastic laminates so.00
06400 dtustom casework • $1,600.00 Soffit wall
install owner furnished millwork and valance $500.00
miscellaneous so.00
WOODS AND PLASTICS SUB-TOTAL $13,700.00
DIVISION I THERMAL& MOISTURE PROTECTION I ENTER VALUE
07000 thermal and moisture protection $o.00
07200 i stallation so.00
rid patching so.00
iscellaneous so.00
TI-I MAL & MOISTURE PROTECTION SUB-TOTAL so.00
DIVISION I DOORS AND WINDOWS I ENTER VALUE
08000 •'ors and windows so.00
08100 etal doors and frames $800.00
0811C •Ilow metal frames so.00
08115 hollow metal doors $o.00
08120 auminum windows, doors and frames so.00
0820C wood doors and frames $400.00
08400 entrances and storefronts $0.00
0871 C fi,ish hardware so.00
08800 glass and glazing so.00
e iason door install $0.00
miscellaneous so.00
DOORS AND WINDOWS SUB-TOTAL $1,200.00
e
. C.
f DIVISION I r Tt #,; iiiit L. k sY' ': 'z ; f:'''ENTER VAL; �24` s yn-
09000 finishes so.00
09110 light gauge framing so.00
09120 cleiling suspension system $1,100.00
09130 acoustical ceiling $800.00
_ 09251 g1ypsum board $2,200.00 Drywall
0930$ the $1,600.00
09310 'eramic tile and base $5,900.00 _
09658 resilient (vct) flooring and base $2,100.00
09900 IJaaiinttiinand material $1,800.00
09950 wall l covering $3,900.00
09986 sanitary wall and ceiling panels (frp) $1,900.00
miscellaneous so.00
FINISHES SUB-TOTAL $21,300.00
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.':;11,DIVISIcN EQUIPMENT I . ENTER VALU KAa gs � �� '
11406 equipment __^ $1,100.00
11406 'Ivyalkin cooler and freezer install $800.00
11
_ 11442 !food waste handling equipment $500.00
• 'unload and install 28' equipment trucktrailer $750.00
assemble equipment $750.00
miscellaneous so.00
EQUIPMENT SUB-TOTAL $3,900.00
DIVISIGN' 'FURNISHINGS ENTER VAL.144 4400:4 • 40 A . $
12001 !furnishings $o.00
_ 1211 { wall decorations art work $o.00 _
12621 gffice millwork $o.00
1262 restaurant and bar furniture so.00
_1274 tuilt in table and seating _ $o.00
!floor safe installation so.00
_ ! window graphics _ _ so.00
miscellaneous $o.00
! I
I FURNISHINGS SUB-TOTAL $0.00
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DIVISION I SPECIAL CONSTRUCTION I ENTER VALUE
13000 pedal construction $o.00
1262 i-larm system $0.0o not required
1262' re extinguishers $140.00
1274', t•ilet accessories $0.00 _ included in plumbing
iscellaneous $o.00
SPECIAL CONSTRUCTION SUB-TOTAL $140.00
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I DIVISION I MECHANICAL I ENTER VALUE
15000 mechanical $o.00
15010 general provisions $o.00
15050 ' basic mechanical so.00
15100 plumbing $7,200.00
1510 : plumbing, fixtures, equipment and trim $750.00
_ 1530 re •rotection _ $o.00 _ not required
1532 re protection sprinkler system $o.00
1550 eating, ventilating and air conditioning $1,200.00
-xhaust hood install $1,200.00
iscellaneous $0.00
MECHANICAL SUB-TOTAL $10,350.00
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DIVISION I ELECTRICAL I ENTER VALUE
16000 -lectrical $7,200.00
16010 •eneral provisions $o.00
16060 •asic electric $o.00
16400 -rvice and distribution Moo
16500 1 li•hting $1,100.00
16517 •ecorative fixtures $990.00
16600 i e alarm $o.00 not required
',hone lines $250.00
utlets (single, duplex, IGF, dedicated, etc.) so.00
ehaust fan _$o.00
florescent fixtures $600.00
1 miscellaneous $o.00
ELECTRICAL SUB-TOTAL $10,140.00
• ‘ '
General Contractor total bid cost for project*
The said amount constitutes the base bid(shall include all work as described in (I $6 8 730.00 the Bid Documents,all labor and all material,taxes,bonds,etc.)
1
*Having examined the Place of The Work and all matters referred to in the Instructions to
Bidders and the Contract Documents for the above mentioned project, we, the undersigned,
hereby of-er to enter into a Contract to perform the Work for the total lump sum price noted
above.
Alternate Bid:
i
Unit Bid:
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ADDITIONAL INFORMATION:
Perform nceland payment bond (if required by owner) e
Change rde'•that may be authorized in writing, which are not performed on a lump sum cost basis, shall be';
determined,uring the following mark-up percentages:
_10 % to contractor for work done by contractor
_5 % to subcontractor for work done by subcontractor
_5 ;%to contractor for work done by subcontractor
Contract r agraes to complete the work in accordance with the contract documents so that the work is fit and ready
for occupncy and use for the purpose intended within_42_to 45 days from the"commencement date"
except w b ere such failure is due to strike and acts of god beyond the control of the contractor.The commencement
date shall be tle earlier of either the date construction commences or the date construction is to commence as
provided in the i agreement between owner and contractor.
The undersigned, in compliance with your invitation for bids for the general construction of the above described project,
proposes lto furnish all labor,equipment,supplies,and material and to perform all work in accordance with contract
document}}s,'spiecifications,schedules,drawings issued by project owner.
The bidc�eracknowledges receipt of the following addenda:
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number: date:
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Compan1 rile: Pyramid Construction, Inc.
Signed "j,. ,Am- ee, i Title 1717- ES 1--DEW date 9 / .2<j0 2
seal if requirL
% --City of Elgin
• Agenda Item No. 0
,,q 1 Ilt
*+r1 ate E Air
✓ �> t,
January 9, 2004 G
TO: Mayor and Members of the City Council?la/
(v
FROM: David M. Dorgan, City Manager ALIVE DOWNTOWN
Raymond H. Moller, Director of Economic Development
SUBJECT: Application for Participation in the Center City
Business Loan Program for Downtown Elgin Subs, dba
Quiznos, Located at 69 Douglas Avenue .
PURPOSE
The purpose of this memorandum is to provide information to the
Mayor and City Council members in order to consider subsidizing
interest on a loan for equipment, fixtures and build out costs
made by Downtown Elgin Subs at 69 Douglas Avenue through State
Financial Bank.
RECOMMENDATION
It is recommended that the City Council approve participation in
the Special Business Loan Program by Downtown Elgin Subs in the
amount of $15, 738 . 45 .
BACKGROUND
As a partner with lending institutions in the Center City
Business Loan Program, the City of Elgin has subsidized interest
on loans made to Center City area businesses . At present, the
City has been involved in twelve (12) such loans made for
projects undertaken by Center City businesses.
In order to participate in the program, the applicant must seek
financing through and receive approval from a lending
institution and file an application for the interest subsidy
with the City. If approved, the City agrees to pay an interest
subsidy on the Loan Agreement to the lender on a monthly basis .
The terms of the current Center City Business Loan Program are
as follows :
1 . Borrowers interest rates on their loans may not
exceed 15% .
2 . The maximum loan is up to $200, 000 per building
project .
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•
Center City Business Loan Program
January 9, 2004
Page 2
3 . The term of the loan shall be based on a ten year
amortization.
4 . The interest rate for the loan must be at or above
the prime rate of interest .
5 . The loan proceeds shall be used only for the
acquisition or lease of operating facilities, the
purchase of equipment or fixtures, space build-out,
or inventory.
6. Interest payments by the City shall be at the
following rates payable over a period of five years:
1st year - 90% of the first year interest costs
2nd year - 89% of the second year interest costs
3rd year - 70% of the third year interest costs
4•th year - 60% of the forth year interest costs
5th year - 50% of the fifth year interest costs
Downtown Elgin Subs is using the proceeds from their $110, 000
loan to purchase equipment, fixtures and to finance build-out
costs for the Quizno' s Subs Restaurant located at 69 Douglas
Avenue. The initial payment schedule was calculated at a 5%
interest rate.
Based upon information provided by State Financial Bank, the
interest subsidy to be provided by the City of Elgin to the bank
on behalf of Downtown Elgin Subs is as follows :
ANNUAL INTEREST CITY % of INTEREST CITY
YEAR PAYMENT PAYMENT PAYMENT
1 $5, 391 . 98 90% $4 , 582 . 78
2 $4, 927 . 78 80% $3, 942 . 22
3 $4, 454 . 53 70% $3, 118 . 17
4 $3, 956. 68 60% $2, 374 . 00
5 $3, 442 . 56 50% $1, 721 . 28
$22, 173 . 53 $15, 738 . 45
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• Center City Business Loan Program
January 9, 2004
Page 3
As indicated above, the interest rate subsidy payable by the
City of Elgin to State Financial Bank on behalf of Downtown
Elgin Subs for the five year period of the interest subsidy
agreement is $15, 738 . 45 .
It should be noted that the City will make the monthly interest 1
payments so long as the borrower continues to make the regular
scheduled loan payments and otherwise complies with the terms of
the agreement to be entered in between the City and the
borrower. If the borrower fails to pay all required loan
payments or otherwise fails to comply with the terms of the
agreement to be entered into with the City, the City will cease
paying.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
State Financial Bank
irF INANCIAL IMPACT
There are sufficient funds available in account number 350-0000-
795. 78-03, Commercial Rehabilitation Loans to enter into this
$15, 738 . 45 agreement with Downtown Elgin Subs . In 2003 $50, 000
was budgeted for this account . To date $7, 705 . 85 has been
expended or encumbered from this account . Following an approval
of his expenditure, $26, 555 . 70 remains available.
\06g/Y
GAL IMPACT
None
ALTERNATIVES
1 . To approve an application by Downtown Elgin Subs to
participate in the Special Business Loan Program for
building improvements and equipment in the amount of
$15, 738 . 45 .
2 . To deny the application for participation in the Special
Business Loan Program for building improvements and
equipment by Downtown Elgin Subs.
IIIRespectfully submitted for Council consideration.
RHM