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HomeMy WebLinkAboutJuly 18th,2013 JEFFERSONVILLE REVOLVING LOAN FUND COMMITTEE REGULAR MEETING MINUTES JULY 18, 2013 The Jeffersonville Revolving Loan Fund Committee held a Regular Meeting on July 18, 2013 that was called to order at 12:04 PM in the Mayor's Conference Room, located at 500 Quartermaster Court, Jeffersonville, Indiana. The following board members were present: Don Allen, Jim Becker, Barry Cahill, Bill Keeney The following board members were absent: Le Anne Scott Staff Members Present: Mayor Mike Moore, Redevelopment Commission Attorney Les Merkley, Redevelopment and Economic Development Director Rob Waiz, Grant Administrator DeLynn Rutherford, Neighborhood and Business Development Director Kelly Phillips Guests Present: Charlie White CALL TO ORDER Mr. Becker called the meeting to order at 12:04 PM. APPROVAL OF AGENDA Mr. Cahill made a motion to approve the agenda. Mr. Keeney seconded the motion. Motion passed unanimously 4 — 0. APPROVAL OF MINUTES Mr. Allen made a motion to approve the minutes from the July 10, 2013 meeting. Mr. Cahill seconded. Motion passed 3 — 0 with Mr. Kenney abstaining. OLD BUSINESS Red Yeti Restaurant Forgivable Loan Request The Building owners have not agreed to a lien on the building. The Ronaus have stated that restaurant equipment can be used as collateral. The RLF Committee has expressed concern about a lack of capital and asked Mr. Waiz to explore the situation further. Item was tabled to look into bank financing for the revolving loan fund. Restaurant forgivable loan request tabled to allow time for discussion with owner and broker. Motion passed 4 -0. Olive Leaf Bistro Jimmy Shraby of Olive Leaf Bistro had previously requested a $50,000 restaurant forgivable loan. Mr. Cahill made a motion to recommend to the Redevelopment Commission a forgivable loan for $50,000 with contingencies that the borrower and his wife sign a personal guaranty, and that the borrower provide the Office of Redevelopment and Economic Development with the last three bank statements showing that he has $50,000 available. Funds will be disbursed upon receipt of paid invoices for restaurant equipment. Mr. Keeney seconded the motion. The motion was approved 3 -1 with Mr. Allen voting against. Big Four Burgers Mr. McMahan requested $50,000 restaurant forgivable loan for the new restaurant Big Four Burgers which will be located on Spring Street near the flood wall in what used to be Third Base Tavern. Mr. McMahan will be making $40,000 in improvements to the building. Mr. Becht, the building owner, will be getting a mortgage on the property with the bank in first position. Mr. Cahill made a motion to recommend to the Redevelopment Commission a forgivable loan for $50,000 with contingencies that the borrower sign a personal guaranty, and that the building owner allow a $20,000 second position lien on the property at 134 Spring Street. Funds will be disbursed upon receipt of paid invoices for restaurant equipment. Mr. Keeney seconded the motion. The motion was approved 4 -0. Comments Mr. Merkley stated that the intent of the program is to provide a different avenue for those businesses which are not getting a conventional loan. Adjournment Mr. Keeney made a motion to adjourn meeting at 12:51 PM. I.� Jim Becker, Chair