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Home My WebLink About92-1216 Cernter City Business Loan • RESOLUTION APPROVING LOAN UNDER THE SPECIAL BUSINESS LOAN PROGRAM FOR BUILDING IMPROVEMENTS IN ELGIN CENTER CITY 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, Jack Sabo has submitted an application to Elgin State Bank for loan under the special business loan program; and WHEREAS, the Elgin State 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 Larry L. Rice, City Manager, and Dolonna Mecum, City Clerk, are hereby authorized to approve the special business program loan as set forth in the loan proposal of the Elgin State Bank attached hereto and made a part hereof by reference, and to make monthly interest payments in the amount of prime plus one ( 1%) percent to a ceiling of fourteen ( 14% ) percent minus six ( 6% ) percent so long as the borrower continues to make regularly scheduled loan payments . s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: December 16 , 1992 Adopted: December 16 , 1992 Omnibus Vote: Yeas 7 Nays 0 Recorded: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk II El • Agenda Item No . November 24, 1992 TO: Mayor and Members of the City Council FROM: Larry L. Rice, City Manager SUBJECT: Interest Subsidy on Special Business Loan for 151 East Highland Avenue PURPOSE To present an application for an interest subsidy under the Special Business Loan Program. BACKGROUND At an earlier meeting, the City Council approved partici- pation in the Special Business Loan Program for Building Improvements proposed by local banks . Under this program, the bank would process a loan application under their normal loan review procedures and then submit a request for City participation upon approval of the loan. City participation would involve subsidizing interest payments equal to prime rate +1 minus 6% . The loan application presented for your consideration 1 requests an interest subsidy on a loan of $30, 000 . 00 at an interest rate of 6 . 0% over a term of 120 months . The borrow- er will be responsible for 6% interest. The City program will subsidize the remaining interest payments equal to prime rate +1 minus 6% over 120 months . FINANCIAL IMPACT The City would be responsible for subsidizing interest payments over 120 months . RECOMMENDATION It is recommended that City Council approve the interest subsidy on a oan under the Special Business Loan Program. /t�Larr . �Ri.ceity Manager LLR:amp Attachments THE ELGIN STATE BANK 500 DUNDEE AVE./ELGIN, IL 601 20/PH. 708-888-7987 GARY K. SCHWEINERT Vice President November 19, 1992 Deborah K. Nier, Program Director City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 Subject: Facade Improvement Program in favor of Studio One, John L. Sabo Dear Ms. Nier: We are seeking the approval of the City of Elgin of the special loan program for the subject applicant. As evidenced by the approval of the City of Elgin Application Review Team dated July 15, 1991, John Sabo has completed the facade improvements on his storefront located at 151 East Highland Avenue. Enclosed please find our approval of the credit extension and other information to give you an overview of the transaction to insure compliance as follows: 1. Title search showing John L. Sabo in title and sole owner of the property held free and clear; 2. Appraisal totalling $68,000 and showing our $30,000 lien to be in a secured position as reflected by the loan to value ratio of 44%. Based on the above, this loan was approved by Elgin State Bank and submitted to you for approval under this special program. Sincerely, Gary K. S'atiJeinert Vice President GKS:bh Enclosure • LOAN PROPOSAL EL11N CENTER CITY SPECIAL BUSINESS LOAN PROGRAM Company Name: Studio One. _ Lender Name Ellin State Bank 151 East Highland Avenue 500 Dundee Avenue Address: Elgin, Illinois 60120" Address: Elgin, Illinois 60120 Phone: 708-695-9590 Phone: 70-888-7987 Owner's Name: John L. Sabo - Account Officer Name: Gary K. Schweinert , Vice President AMOUNT APPROVED BY LENDER: S30,000.00 INTEREST RATE: 6 TERM OF LOAN: 120 Months Monthly Payments: s 333.07 per month by borrower $ 15.26 per month initially by City Collateral : First Mortaaze. an_d_ Ass;onmeat of RPnrs _ The undersigned lending institution has approved the above extension of credit. The purpose of the loan and contractor(s) are described on the attached application. ELGIN STATE BANK Lending Institution BY: . -- cilS1- ---- Accountujficer Gary K. Schweinert, Vice President Date: November 17, 1992 • INFORMATION REQUIRED: 1. Attach copy of contractor proposals and copies of other contractor bids obtained for the proposed work. 2. Attach copy of completed Application from borrower.