HomeMy WebLinkAbout07-54 4
T, 4. I
Resolution No. 07-54
RESOLUTION
APPROVING LOAN UNDER THE SPECIAL BUSINESS LOAN PROGRAM
FOR BUILDING IMPROVEMENTS IN ELGIN CENTER CITY
(25 S. Grove 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, Burnidge Cassell Associates Inc. has submitted an application to First
Community Bank for a loan under the special business loan program; and
WHEREAS,First Community 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 Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,are hereby
authorized to approve and execute the special business loan agreement with Burnidge Cassell and
Associates, Inc., a copy of which is attached hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: February 28, 2007
Adopted: February 28, 2007
Omnibus Vote: Yeas: 7 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
s/Jennifer Quinton
Jennifer Quinton, Deputy City Clerk
I
CITY OF ELGIN CENTER CITY SPECIAL
BUSINESS LOAN AGREEMENT
THIS AGREEMENT is hereby made and entered into this
��j� \day ofVlAy--)"' , 2007, by and between the City of Elgin,
Illinois, a municipal corporation (hereinafter referred to as the
"City" ) , and Burnidge Cassell Associates Inc . an Illinois
Corporation (hereinafter referred to as the "Tenant" ) .
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, the Program contemplates the City paying a portion
of financing costs for eligible building improvements; and
WHEREAS, Tenant is the tenant in the property commonly known
as 25 Grove Avenue, Suite 500, Elgin, Illinois, (hereinafter
referred to as the "Subject Property" ) which is located in the
Center City area as described in Program hereto; and
WHEREAS, Tenant 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, Tenant has completed an application for
participation in the subject Program which identifies the
proposed improvements to the Subject Property, a copy of Tenant ' 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 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 Tenant ' s application for participation in the
Program is hereby approved.
3 . That as long as the Tenant continues to make regularly
scheduled loan payments on the Subject Loan Agreement and
otherwise complies with the terms of this agreement City shall
pay an interest subsidy on the Subject Loan Agreement consisting
of monthly reimbursement payments to Tenant in the amount equal
to 90% of the first year ' s interest, 80% of the second year' s
interest, 70% of the third year' s interest, final year' s
interest, commencing January 15 2007, upon receipt of
verification of payment from lender and pursuant to the
amortization and payment schedules attached hereto and made a
part hereof as Exhibit D.
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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
$200 , 000 . In no event shall the interest payments exceed $22, 593 .
The Tenant 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 or obligee 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 .
Additionally, the provisions of this agreement shall not be
construed so as to create any obligations as to City based on any
theory of equitable estoppel .
5 . In the event the Tenant conveys any of its interest in
Subject Property prior to January, 2010, Tenant shall refund all
payments made by city pursuant to this agreement no later than 30
days after such conveyance .
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6 . 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
Tenant ' s ongoing compliance with all terms and requirements of
the program and this agreement .
7 . That upon completion of the improvements, and for a
period of three (3) years thereafter, Tenant shall properly
maintain the improvements in their finished form, without
alteration or change thereto.
8 . That nothing herein is intended to limit, restrict or
prohibit the Tenant from undertaking other work in or about the
Subject Property which is unrelated to the improvements provided
for in this agreement .
9 . That this agreement may not be assigned without the
prior written consent of the City.
10 . Tenant 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 Tenant' s or Tenants ' agents, employees' ,
contractors' and assigns' negligent performance of any of the
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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 .
11 . That this agreement shall not be construed to create a
partnership, joint venture or employment relationship between the
parties hereto.
12 . Tenant 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 .
13 . That this agreement shall be subject to and governed by
the laws of the State of Illinois . Venue for the resolution of
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 .
14 . 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 .
15 . 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
5
Attention: City Manager (with a copy to
Corporation Counsel)
To : Burnidge Cassell Associates
25 S . Grove Avenue
Suite 500
Elgin, IL 60120
16 . 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 .
17 . In the event of Tenant ' s breach of any of the terms of
this agreement, Tenant shall refund to City the full amount of
any payments made by City to Tenant or to any other entity on
Tenant ' s 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.
18 . This agreement shall terminate on January, 2010 . 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, and Tenant shall be entitle to no further relief
pursuant to this agreement .
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IN WITNESS WHEREOF, the parties hereto have entered into and
executed this agreement the day and year first written above .
CITY OF ELGIN Burnidge Cassell Associates
Inc .
BY 13Yatibtle144411444-d-2,--/
e Fola ' n
City pager
Attest : Attest :
Le/01441(X. 'A 1. /\ .4aLowitAaWl
City Clerk
7
OF F
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Ekhtbut
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 :
lat year - 90% of first year interest costs
2n`� 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 .
•
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-add -required loara---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.
• is/J1/etiab 11:4b 1-1k'6I CUMMl.R1TY BI=t4F( -► 12A77424682 No,gge (702
EX 4, ii tiO .
fiantglifitiwiny
October 31, 2006
Burnidge Cassell&Associates, Inc.
2425 Royal Boulevard
Elgin, IL 60123
Attn.: Thomas Slavicck,CFO
Re: Renovation of 4th&51h Floors, 25 S. Grove, Elgin, IL
Center City Special Business Loan Program
Dear Mr. Slavicek,
First Community Bank is pleased to notify you that the loan request for an improvement
loan to Burnidge Cassell & Associates, Inc. (BCA) has been approved, subject to the
following conditions:
1) Approval by the City of Elgin for BCA to participate in its Special Business Loan
Program
2) Loan amount of$200,000.00
3) Interest rate of 8.25%Fixed
4) $50 documentation fee plus out-of-pocket costs
5) Amortization i Term of up to 3 years
6) Collateral to consist of a first lien on all business assets
7) Guarantees to be provided by Daniel Atilano, Charles Burnidge, John Cinelli, and
Richard McCarthy
Loan proceeds may be used for any purpose approved under the Special Business Loan
Program. The loan must be closed and funded no later than December 15, 2006,or this
commitment shall be considered expired. If you have any questions,please don't hesitate
to call.
Sincerely,
Michael A. Hawley
Vice President
165 South.Randall Road • 1?e NI, 11.Itnois 60123
MEND (847)622.5600 • Fax{8471622-8861 • www.#ixatcornbank.cor Member FDIC
Locally Owned and Managed
•
Kh1S /7 e
APPLICATION FOR
CITY OF ELGIN
CENTER CITY SPECIAL BUSINESS LOAN PROGRAM
Date: November 29,2006
Loan Amount Requested: $200.000 Total Project Cost: $640,000
Company Name: Burnidge Cassell Associates
Address: 25 South Grove Avenue, Suite 500
Elgin,Illinois 60120
Phone: (847)695-5840
Owner's Name(s): Charles Burnidge,Daniel Atilano,Richard McCarthy,John Cinelli
Type of Business: Architecture
Purpose of Loan: Remodeling and Furniture
Does this loan represent an addition to a loan previously approved for the project? NO
BREAKDOWN OF PROJECT
See Attached
OTHER CONTRACTOR BIDS OBTAINED
See Attached
Description of Property: Leasing space at the Burritt Building
25 South Grove Avenue
46 and 56 Floors and part of basement.
There is 5,941 square feet per floor and each floor being completely remodeled
The undersigned applicant hereby certifies that the loan funds obtained shall be used for the purposes
outlined in this application.
Date: November 29,2006
Applicant Business
2/0% "4„..
BY: ant& eh-
,
Charles H.Burnidge
Burnidge Cassell Associates
Shales McNutt Construction Burnidge Cassell Associates �
August 17, 2006
25 South Grove
Elgin, IL
Trade Division Basement 4th Floor 5th Floor Allocations Total
Demolition $ 17,500.00 $ 9,550.00 $ 6,650.00 $ 33,700.00
Cabinetry $ 29,000.00 $ 29,000.00 $ $ 58,000.00
Roofing Allowance $ 1,000.00 $ 1,000.00
Doors & Frames $ 4,026.00 $ 4,027.00 $ 8,053.00
Self Performed (T &M) $ 8,643.00 $ 8,643.00 $ - $ 17,286.00
Drywall Assemblies $ 17,600.00 $ 19,200.00 $ 1,300.00 $ 38,100.00
Glazing Allowance $ 4,431.00 $ 4,431.00 $ 8,862.00
Flooring $ 13,360.00 $ 13,269.00 $ 4,620.00 $ 31,249.00
Sealed Concrete (Allowance) $ 6,200.00 $ 6,200.00 $ 12,400.00
Paint $ 10,200.00 $ 7,700.00 $ 5,000.00 $ 22,900.00
SysScribe (Allowance) $ - $ - $ -
Fire Extinguisher $ 500.00 $ 500.00 $ • $ 1,000.00
Sprinkler $ 5,500.00 $ 5,358.00 $ - $ 10,858.00
Plumbing $ 4,250.00 $ 4,250.00 $ 1,200.00 $ 9,700.00
HVAC $ 3,264.00 $ 3,263.00 $ 1,500.00 $ 8,027.00
Electrical $ 33,565.00 $ 33,565.00 $ 67,130.00
Fence $ 2,200.00 $ - $ $ - $ 2,200.00
Floor Sealing $ 860.00 $ 700.00 $ 1,560.00
Total $ 2,200.00 $ 158,899.00 $ 149,656.00 $ 21,270.00 $ 332,025.00
Supervision/General Conditions (Estimated)Reimbursable $ 42,010.00
Construction Manager Fee 5% $ 18,701.00
Construction Contingency $
Total Project Cost $ 392,736.00
I
DATE: 12/06/06 PACE: 1 I
PREPARED FOR: BURNIDG£C ASSELL OFFICER MAH CSR 1337STRHP - m
PLATFORM TYPE: CA RATE: 8.2500t PAYMENT: 2,465.84 TERM:120 H PAYMENT DAY: 61
INTEREST: 95,902.37 l415 .. yam- CD
PAYMENT ,� _� �f�
DATE NUMBER MISC. INTEREST PRINCIPAL PHI INS. TOTAL BALANCE F,
W
ORIGINAL BALANCE 200,000.00 A
1/15/07 1 .00 1,420.84 1,045.00 .00 2,465.64 198,955.00 O]
2/15/07 2 .00 1,413.41 1,052.43 .00 2,465.84 197,902.57
3/15/07 3 .00 1,269.88 1,195.96 .00 2,465.84 196,705.51
4/15/07 4 .00 1,397.44 1,068.40 .00 2,465.84 195,638.21
5/15/07 5 .00 1,345.01 1,120.83 .00 2,465.84 194,517.38 11
6/15/07 6 .00 1,381.89 1,083.95 .00 2,465.04 193,433.43 7
7/15/07 7 .00 1,329.86 1,135.98 .00 2,465.84 192,297.45 (!7
8/15/07 8 .00 1,366.12 1,099.72 .00 2,465.84 191,197.73 'i
9/15/07 9 .00 1,358.30 1,107.54 .00 2,465.84 190,090.19 (-]
10/15/07 10 .00 1,306.87 1,158.97 .00 2,465.84 188,931.22 O
11/15/07 11 .00 1,342.20 1,123.64 .00 2,465.84 187,807.58 C
12/15/07 12 .00 1,291.18 1,174.66 .00 2,465.84 186,632.92 Z
YEAR 2007 .00 16,223.00 13,367.08 .00 29,590.08 --I
1/15/08 13 .00 1,325.87 1,139.97 .00 2,465.84 185,492.95 CO
2/15/08 14 .00 1,317.77 1,148.07 .00 2,465.84 184,344.88 z
z
3/15/08 15 .00 1,225.13 1,240.71 .00 2,465.84 183,104.17
4/15/08 16 _00 1,300.80 1,165.04 .00 2,465.84 181,939.13 4,
5/15/08 17 .00 1,250.83 1,215.01 .00 2,465.84 180,724.12 1-=
6/15/08 18 .00 1,283.90 1,181.94 .00 2,465.84 179,542.18 w
7/15/08 19 .00 1,234.35 1,231.49 .00 2,465.84 178,310.69 A
8/15/08 20 .00 1,286.75 1,199.09 .00 2,465.84 177,111.60 -.3
9/15/08 21 .00 1,258.23 1,207.61 .00 2,465.84 175,903.99 LI
r
10/15/08 22 .00 1,209.34 1,256.50 .00 2,465.84 174,647.49 U1
11/15/08 23 .00 1,240.73 1,225.11 .00 2,465.84 173,422.38 ID
12/15/08 24 .00 1,192.28 1,273.56 .00 2,465.84 172,148.82 i
YEAR. 2008 _00 15,105.98 14,484.10 .00 29,590.08
•
1/15/09 25 .00 1,222.98 1,242.86 .00 2,465.84 170,905.96
2/15/09 26 .00 1,214.15 1,251.69 _00 2,465.84 169,654.27
3/15/09 27 .00 1,088.62 1,377.22 .00 2,465.84 168,277.05
4/15/09 28 .00 1,195.47 1,270.17 .00 2,465.84 167,006.68
5/15/09 29 .00 1,148.17 1,317.67 .00 2,465.84 165,689.01
6/15/09 30 .00 1,177.08 1,288.76 .00 2,465.84 164,400.25
7/15/09 31 .00 1,110.25 1,335.59 .00 2,465.84 163,064.66
8/15/09 32 .00 1,158.44 1,307.40 .00 2,465.84 161,757.26
9/15/09 33 .00 1,149.15 1,316.89 .00 2,465-84 160,440.57
10/15/09 34 .00 1,101.03 1,162.81 .00 2,465.84 159,077.76
11/15/09 35 .00 1,130.12 1,335.72 .00 2,465.84 157,742.04
12/15/09 36 .00 1,084.48 1,381.36 .00 2,465.84 156,360.68
YEAR 2009 _00 13,801.94 15,788.14 .00 29,590.08
1/15/10 37 .00 1,110.81 1,355.03 .00 2,465.84 155,005.65 O
2/15/10 38 .00 1,101.19 1,364.65 .00 2,465.84 153,641.00 F
3/15/10 39 .00 985.86 1,479.96 _00 2,465.84 152,161.02
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DATE: 12/06/06 PAGE: 3 .
PREPARED FOR:. BDRHXDCEC ASSELL M -.
RATE: 08.2500E PAYMENT. 2,465.84 TERM:120 M PAYMENT BAY: - m
0i
PAYMENT
DATE NUMBER MISC. INTEREST PRINCIPAL PMI INS. TOTAL BALANCE
N
BROUGHT FORWARD 87,654.49 W
8/15/13 80 .00 622.71 1,843.13 .00 2,465.84 85,811.36 b
9/15/13 81 .00 609.62 1,856.22 .00 2,465.84 83,955.14 CO
10/15/13 82 .00 577.19 1,888.65 _00 2,465.84 82,066.49
11/15/13 83 .00 583.01 1,882.83 .00 2,465.84 80,103.66
12/15/13 84 .00 551.26 1,914.58 .00 2,465.84 78,269.00
71
YEAR 2013 .00 7,556.47 22,033.61 .00 29,590.08 73
CO
1/15/14 85 .00 556.04 1,909.80 .00 2,465.84 76,359.28 -I
2/15/14 86 .00 542.47 1,923.37 .00 2,465.84 74,435.91 n
3/15/14 87 .00 477.63 1,988.21 .00 2,465.84 72,447.70 o
4/15/14 88 .00 514.68 1,951.16 .00 2,465.84 70,496.54 3
5/15/14 09 .00 484.66 1,981.18 .00 2,465.84 66,515.36 C
6/15/14 90 _00 486.75 1,979.09 .00 2,465.84 66,536.27 z
7/15/14 91 _00 457.44 2,008.40 .00 2,465.84 64,527.87 -I
8/15/14 92 _00 458.42 2,007.42 .00 2,465.84 62,520.45
9/15/14 93 _00 444.16 2,021.68 .00 2,465.84 60,498.77 tEl
10/15/14 94 .00 425.93 2,049.91 .00 2,465.84 58,448.86
- Z
11/15/14 95 .00 415.23 2,050.61 .00 2,465.84 56,398.25
12/15/14 96 _00 387.74 2,078.10 .00 2,465.84 54,320.15 4,
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YEAR 2014 .00 5,641.15 23,948.93 .00 29,590.08 CO
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1/15/15 97 .00 385.90 2,079.94 .00 2,465.84 52,240.21 -.3
2/15/15 98 .00 371.12 2,094.72 .00 2,465.84 50,145.49 Y
3/15/15 99 .00 321.77 2,144.07 .00 2,465.84 48,001.42 {_fl
4/15/15 100 .00 341.01 2,124.83 .00 2,465.84 45,876.59 Cr)
5/15/15 101 .00 315.40 2,150.44 .00 2,465.84 43,726.15 m
6/15/15 102 .00 310.64 2,155.20 .00 2,465.84 41,570.95
7/15/15 103 .00 285.80 2,180.04 .00 2,465.84 39,390.91
8/15/15 104 .00 279.84 2,186.00 .00 2,465.84 37,204.91
9/15/15 105 .00 264.31 2,201.53 .00 2,465.84 35,003.38
10/15/15 106 .00 240.65 2,225.19 .00 2,465.84 32,778.19
11/15/15 107 .00 232.86 2,232.98 .00 2,465.84 30,545.21
12/15/15 108 .00 210.00 2,255.04 .00 2,465.04 28,289.37
YEAR 2015 .00 3,559.30 26,030.70 .00 29,590.08
1/15/16 109 .00 200.97 2,264.87 .00 2,465.84 26,024.50
2/15/16 110 .00 184.88 2,280.96 .00 2,465.84 23,743.54
3/15/16 111 .00 157.80 2,308.04 .00 2,465.84 21,435.50
4/15/16 112 .00 152.28 2,313.56 .00 2,465.84 19,121.94
5/15/16 113 .00 131.46 2,334.38 .00 2,465.84 16,787.56
6/15/16 114 .00 119.26 2,346.58 .00 2,465.84 14,440.98
7/15/16 115 .00 99.28 2,366.56 .00 2,465.84 12,074.42
8/15/16 116 .00 85.78 2,380.06 .00 2,465.84 9,694.36 Z
9/15/16 117 .00 68.87 2,396.97 .00 2,465.84 7,297.39 0
10/15/16 118 .00 50.17 2,415.67 .00 2,465.84 4,881.72 p,
11/15/16 119 .00 34.68 2,431.16 .00 2,465.84 2,450.56 tAD
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DATE: 12/06/06 !U
PAGE: 4
PREPARED POR: BOPJnDOEC
ASSBLL
RATE: 08.2500% PAYMENT: 2,465.84 TERM:120 M PAYMENT DAY:
PAYMENT
DATE NUMBER MISC. INTEREST PRINCIPAL PMI INS. TOTAL BALANCE
BROUGHT FORWARD 2,450.56
12/15/16 120 .00 16.85 2,450.56
.00 2,467_dl .00
YEAR 201E .00 1,302.28 28,289.37 00 29,591.65 03
GRAND TOTAI, .00 95,902.37 200,000.00 .00 295,902.37
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DATE: 11/20/06 PAGE: 1 F\..
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PREPARED FOR: BURNIDOEC ASSELL OFFICER MAN CSR B37ATEAN - Rt
PLATFORM TYPE: CA RATE: 8.2500k PAYMENT: 6,301.50 TERM: 36 M PAYMENT DAY: 3��f Qr
INTSRBST: 26,853.93 (T)
PAYMENT a 4-V, 76 1:3h
DATE NumBER MISC. INTEREST PRINCIDAL PMI INS. TOTAL BALANCE
F,
W
ORIGINAL BALANCE 200,000.00 A
1/15/07 1 .00 1,420.84 4,880.66 .00 6,301.50 195,119.34 CO
2/15/07 2 .00 1,386.16 4,915.34 .00 6,301.50 190,204.00
3/15/07 3 .00 1,220.48 5,081.02 .00 6,301.50 105,122.98
4/15/07 4 .00 1,315.15 4,986.35 .00 6,301.50 180,136.63
5/15/07 5 .00 1,238.44 5,063.06 .00 6,301.50 175,073.57 it
6/15/07 6 .00 1,243.75 5,057.75 .00 6,301.50 170,015.82
7/15/07 7 .00 1,168.86 5,132.64 .00 6,301.50 164,883.18 to
XI
8/15/07 8 -00 1,171.36 5,130.14 .00 6,301.50 159,753.04 -1
9/15/07 9 .00 1,134.91 5,166.59 .00 6,301.50 154,586.45 Cl
10/15/07 10 .00 1,062.78 5,238.72 .00 6,301.50 149,347.73 0
11/15/07 11 .00 1,060.99 5,240.51 .00 6,301.50 144,107.22
12/15/07 12 .00 990.74 5,310.76 .00 6,301.50 138,796.46 Z
YEAR 2007 .00 14,414.46 61,203.54 .00 75,618.00 {
1/15/06 13 .00 986.03 5,315.47 .00 6,301.50 133,480.99 tO
2/15/08 14 .00 948.27 5,353.23 .00 6,301.50 128,127.76 23
3/15/08 15 .00 851.52 5,449.98 .00 6,301.50 122,677.78 7
4/15/08 16 .00 871.52 5,429.98 .00 6,301.50 117,247.80 4,
5/15/08 17 .00 806.08 5,495.42 .00 6,301.50 111,752.38
6/15/08 18 .00 793.91 5,507.59 .00 6,301.50 106,244.79 1-'
7/15/08 19 .00 730.43 5,572.07 .00 6,301.50 100,673.72 A
0/15/08 20 .00 715.20 5,586.30 .00 6,301.50 95,087.42
9/15/08 21 .00 675.52 5,625.98 .00 6,301.50 89,461.44 (.4
10/15/08 22 .00 615.05 5,686.45 .00 6,301.50 83,774.99 I-
11/15/08 23 .00 595.15 5,706.35 .00 6,301.50 78,068.64 01
12/15/06 24 _00 536.72 5,764.78 .00 6,301.50 72,303.86 1-'
m
YEAR 2008 .00 9,125.40 66,492.60 .00 75,618.00
1/15/09 25 .00 513.66 5,787.84 .00 6,301.50 66,516.02
2/15/09 26 .00 472.54 5,828.96 .00 6,301.50 60,687.06
3/15/09 27 .00 389.41 5,922.09 .00 6,301.50 54,774.97
4/15/09 28 .00 389.13 5,912.37 .00 6,301.50 48,862.60
5/15/09 29 .00 335.93 5,965.57 .00 6,301.50 42,897.03
6/15/09 30 .00 - 304.75 5,996.75 .00 6,301.50 36,900.28
7/15/09 31 .00 253.69 6,047.81 .00 6,301.50 30,852.47
8/15/09 32 .00 229.18 6,082.32 .00 6,301.50 24,770.15
9/15/09 33 .00 175.97 6,125.53 .00 6,301.50 18,644.62
10/15/09 34 .00 128.18 6,173.32 .00 6,301.50 12,471.30
11/15/09 35 .00 88.60 6,212.90 .00 6,301.50 6,258.40
12/15/09 36 .00 43.03 6,258.40 .00 6,302.43 .00
YEAR 2009 .00 3,314.07 72,303.86 .00 75,617.93
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GRAND TOTAL .00 26,833.93 200,000.00 .00 226,853.93 F,
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10/31/2006 11:46 FIRST COMMUI•ITY SANK i 12477424682 NO.800 002
FIRST
BANK 1N
October 31, 2006
Burnidge Cassell &Associates,Inc.
2425 Royal Boulevard
Elgin, IL 60123
Attn.: Thomas Slavicek, CFO .
Re: Renovation of 4th& 5th Floors, 25 S. Grove, Elgin, IL
Center City Special Business Loan Program
Dear Mr. Slavicek,
First Community Bank is pleased to notify you that the loan request for an improvement
loan to Burnidge Cassell & Associates, Inc. (SCA) has been approved, subject to the
following conditions:
1) Approval by the City of Elgin for BCA to participate in its Special Business Loan
Program
2) Loan amount of$200,000.00
3) Interest rate of 8.25%Fixed
4) $50 documentation fee plus out-of-pocket costs
5) Amortization/Term of up to 3 years
6) Collateral to consist of a first lien on all business assets
7) Guarantees to be provided by Daniel Atilano, Charles Burnidge, John Cinelli, and
Richard McCarthy
Loan proceeds may be used for any purpose approved under the Special Business Loan
program. The loan must be closed and funded no later than December 15, 2006,or this
commitment shall be considered expired. If you have any questions,please don't hesitate
to call.
Sincerely,
"7f;". /d/Z7
Michael A. Hawley
Vice President
165 South.Randall Road • Elg n, Illinois 60123
(847)622-8800 • Fax i847)822-5861 • wwwftr&cc mbsank corn Member FDIC
(ENDER Locally Owned and Managed
Shale Vutt Construction Burnidge Associates Augus a006
25 South Grove .
Elgin, IL
Trade Division Basement 4th Floor 5th Floor Allocations Total
Demolition $ 17,500.00 $ 9,550.00 $ 6,650.00 $ 33,700.00
Cabinetry $ 29,000.00 $ 29,000.00 $ - $ 58,000.00
Roofing Allowance $ 1,000.00 $ 1,000.00
Doors &Frames $ 4,026.00 $ 4,027.00 $ 8,053.00
Self Performed(T &M) $ 8,643.00 $ 8,643.00 $ - $ 17,286.00
Drywall Assemblies $ 17,600.00 $ 19,200.00 $ 1,300.00 $ 38,100.00
Glazing Allowance $ 4,431.00 $ 4,431.00 $ 8,862.00
Flooring $ 13,360.00 $ 13,269.00 $ 4,620.00 $ 31,249.00
Sealed Concrete (Allowance) $ 6,200.00 $ 6,200.00 $ 12,400.00
Paint $ 10,200.00 $ 7,700.00 $ 5,000.00 $ 22,900.00
SysScribe (Allowance) $ • $ $
Fire Extinguisher $ 500.00 $ 500.00 $ - $ 1,000.00
Sprinkler $ 5,500.00 $ 5,358.00 $ • $ 10,858.00
Plumbing $ 4,250.00 $ 4,250.00 $ 1,200.00 $ 9,700.00
HVAC $ 3,264.00 $ 3,263.00 $ 1,500.00 $ 8,027.00
CO Electrical $ 33,565.00 $ 33,565.00 $ 67,130.00
Fence $ 2,200.00 $ - $ - $ - $ 2,200.00
Floor Sealing $ 860.00 $ 700.00 $ 1,560.00
Total $ 2,200.00 $ 158,899.00 $ 149,656.00 $ 21,270.00 $ 332,025.00
Supervision/General Conditions (Estimated)Reimbursable $ 42,010.00
Construction Manager Fee 5% $ 18,701.00
Construction Contingency $
Total Project Cost $ 392,736.00
r ,<4 OF,EE C4.
• Z Agenda Item No.
,1• City of Elgin
• ! Diu ,
NORTH\BEST
January 5, 2007
mornic Growth and
TO: Mayor and Members of the City Council Dwcrsi1icdTn Base
FROM: Olufemi Folarin, City Manager
Raymond H. Moller, Director o Economic Development and Business
Services
SUBJECT: Application for Participation in the Center City Business Loan Program
for Burnidge Cassell Associates
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 build out costs
made by Burnidge Cassell Associates (BCA), located at 25 S. Grove Avenue, through
First Community Bank.
RECOMMENDATION
It is recommended that the City Council approve participation in the Special Business
Loan Program by BCA in the amount of$22,593.00.
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 fourteen 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 load
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%.
' Center City Business Loan Program
January 5, 2007
Page 2
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 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—80%of the second year interest costs
3rd year—70% of the third year interest costs
4th year—60% of the forth year interest costs
5th year—50% of the fifth year interest costs
BCA is using the proceeds from the $200,000 loan to finance build-out costs for their
newly relocated offices at 25 S. Grove Avenue. The BCA architectural firm will occupy
the 4th and 5th floors of the Burritt Building. All information required by the loan
program has been provided. The interest rate applicable to the loan from First
Community Bank is 8.25%.
BCA is able to secure a $200,000 loan with a three year pay off at an 8.25% interest rate.
The interest subsidy by the City would be as follows:
Annual Interest City% of Interest City
Year Payment Payment Payment
1 $14,414 90% $12,973
2 9,125 80% 7,300
3 3,314 70% 2,320
$26,853 $22,593
The interest subsidy payable by the City for the five year period is $49,273. The interest
subsidy payable by the City over a three year period is $22,593. It is recommended that
this program be modified to allow for the three year loan period.
It should be noted that the City will make the monthly interest payments as long as the
borrower continues to make timely, regularly scheduled loan payments and otherwise
complies with the terms of the agreement to be entered in between the City and the
• Center City Business Loan Program
January 5, 2007
Page 3
borrower. If the borrower fails to pay all required loan payments or otherwise fails to
comply with the terms of the proposed agreement, the City will cease paying.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
First Community Bank
InkiKJINANCIAL IMPACT
There are sufficient funds available in the Riverboat Lease Fund, account number 276-
0000-791.80-27, Economic Development Incentives, and Project Number 17711A to
enter into this $22,593 agreement with BCA. In 2007 $1,095,000 was budgeted for this
account. To date nothing has been expended or encumbered from this account.
Following an approval of this expenditure, $1,072,407 remains available.
v\f\r) LEGAL IMPACT
An agreement will be required.
ALTERNATIVES
1. The Council could choose to approve the application by Burnidge Cassell
Associates to participate in the Special Business Loan Program for building
improvements in the amount of$22,593.00.
2. The Council could choose to deny the application for participation in the Special
Business Loan Program for building improvements by Burnridge Cassell
Associates.
Respectfully submitted for Council consideration
RHM/jr
Attachment(s)