Community Development Block Grant Revolving Loan Committee

AGENDA OF THE COMMUNITY DEVELOPMENT BLOCK GRANT REVOLVING LOAN COMMITTEE THURSDAY, JULY 7, 2022, 7:30 AM Virtual Meeting. Public may join via Zoom. A. Zoom Meeting Instructions. 1. This item contains Zoom information, instructions, and a link to the Virtual Comment Form. B. Roll Call. 1. Members: Matt Schueller - Chair, Vice Chair Ace Champion, Ald. Brian Johnson, Kathy Hinkfuss C. Approval of the Agenda. 1. Approval of the Agenda for the July 7, 2022, meeting of the Community Development Block Grant Revolving Loan Committee. D. Approval of Minutes. 1. Approval of the minutes from the April 8, 2022, meeting of the Community Development Block Grant Revolving Loan Committee. E. Regular Business. 1. Consideration with possible action on a request from Bay Area Burger Company's owner and operator, Cole Ductan, requesting $35,000 in Community Development Revolving Loan Funds for a working capital loan for his new business location at 126 S. Broadway. The Committee may convene in closed session pursuant to Sections 19.85(1)(e), Wis. Stats., for purposes of deliberating or negotiating the sale of public properties, investing of public funds or conducting other specified public business as necessary for competitive or bargaining reasons, and Section 19.85(1) (g), Wis. Stats., for the purpose of conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved. The Authority will thereafter reconvene in open session pursuant to Section 19.85(2), Wis. Stats., to take action on items discussed in closed session, if appropriate, and to consider the remainder of the agenda. F. Informational. Agenda of the Community Development Block Grant Revolving Loan Committee July 7, 2022 Page 1  1. RLF Loan Status Report. G. Adjournment. 1) THIS MEETING IS RECORDED: THE VIDEO OF THIS MEETING AND MINUTES ARE AVAILABLE ONLINE AT www.greenbaywi.gov 2) ACCESSIBILITY: Any person wishing to attend who requires special accommodation because of a disability, should contact the City Safety Manager at 920-448-3125 at least 48 hours before the scheduled meeting time so that arrangements can be made. 3) QUORUM: Please take notice that a majority or quorum of the Common Council will attend this Community Development Block Grant Revolving Loan Committee meeting and will constitute a meeting of the Common Council for purposes of discussion and information gathering relative to this agenda. 4) REPRESENTATION: The party requesting the communication, or their representative, should be present at this meeting. Agenda of the Community Development Block Grant Revolving Loan Committee July 7, 2022 Page 2 Virtual Meeting Instructions Community Development Block Grant Revolving Loan Committee Zoom Meeting Information Join Zoom Meeting https://us02web.zoom.us/j/88405892682?pwd=YUhQbitpeGdJV1hHcUNTSWxJMWZUZz09 Meeting ID: 884 0589 2682 Passcode: 944795 One tap mobile +16468769923,,88405892682# US (New York) +16469313860,,88405892682# US Dial by your location +1 646 876 9923 US (New York) +1 646 931 3860 US +1 301 715 8592 US (Washington DC) +1 312 626 6799 US (Chicago) +1 669 444 9171 US +1 669 900 6833 US (San Jose) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 408 638 0968 US (San Jose) Meeting ID: 884 0589 2682 Passcode: 944795 Find your local number: https://us02web.zoom.us/u/kkgNR1a5P Public Comments If you wish to speak at this public meeting or leave a comment, please fill out the online Comment Form prior to the meeting. Additional Information 1. Wisconsin Open Meetings Law still applies a. Persons interested in speaking to an item must state their name and address for the minutes. b. Committee/Commission/Board members will still follow Roberts Rules of Order Newly Revised 12th edition. 2. Please log into the Zoom meeting at least 10 minutes before the meeting begins to ensure a proper connection and that your technology is working. a. If you are a Board Member, please log into CivicClerk with a computer, laptop, or tablet device. 3. Once you are in the meeting please mute yourself. a. You may unmute yourself when you are called upon to speak. 4. Waiting room a. When you call in or connect via web or Zoom app, you will be placed in a “waiting room.” b. The meeting host will then admit you to the meeting, and mute you upon entrance (you will still be able to hear and or otherwise observe the meeting). 5. Registering a. The host may ask you to register for the meeting. A registration link will be sent to you along with the invite. You’ll receive another email confirming that you’re registered for the meeting. b. If you’re using a phone, your registration will be tied to an email. 6. Raising your hand a. Committee/Commission/Board members—you can either use CivicClerk and request to speak or you can also utilize the “raise your hand” tool in the Zoom platform (you’d need to use a computer or tablet) to let the host know you would like to speak. You can also un-mute yourself and start speaking. b. Persons with items on the agenda or other interested parties —you can also utilize the “raise your hand” tool on the Zoom platform via computer or mobile device. You will be allowed to speak once the committee, commission, or board has moved to “open the floor for interested parties to speak.” Once discussion on your agenda item has concluded, the host will mute you, unless the committee opens the floor again. 7. What devices should I use? a. Smart phone (please see more detailed instructions on page 3) b. Land line c. Tablet— in advance of the meeting, please download the Zoom Meeting app by using either the Apple Store or the Play Store. You will be asked to input your name, to identify you for the meeting. d. Computer— you can access the meeting through a web browser by clicking on the meeting link, or through the Zoom Meeting app. If using the app, please download it in advance of the meeting. You will be asked to input your name, to identify yourself for the meeting. e. For tablet and computer users--if you download the app you may be asked to verify your email.  8. Zoom etiquette a. Muting yourself when you’re not speaking will prevent your background noise from interfering with others’ ability to listen to and participate in the meeting. b. If you’re using a telephone, please identify yourself with your phone number and state your name and address before you speak. Zoom meeting hosts can see only your telephone number and will ask you to identify yourself. 9. Closed session a. Persons in the Zoom meeting will be put into a waiting room while the committee/commission/board meets in Closed Session. Participants will be admitted back into the Zoom meeting once the committee reconvenes in Open Session. b. Persons watching a Common Council meeting live on YouTube will see a gray screen with the City logo during closed session. 10. Persons interested in attending anonymously or listening to the meeting may call in by dialing *67 followed by the phone number in the Zoom Meeting Information box. Calling into the Zoom meeting using a smartphone 1. Dial the phone number listed at the beginning of this document. 2. When prompted, enter the Meeting ID number followed by # 3. Once you are in the meeting, notify the meeting host that you are in and state your name. 4. If you do not wish to speak, please make sure your phone is on Mute a. If you’re using a smartphone, look at your screen and click the Mute button MINUTES OF THE COMMUNITY DEVELOPMENT BLOCK GRANT REVOLVING LOAN COMMITTEE FRIDAY, APRIL 8, 2022, 7:30 AM CITY HALL, ROOM 604 A. ZOOM MEETING INSTRUCTIONS. 1. This item contains Zoom information, instructions, and a link to the Virtual Comment Form. B. ROLL CALL. 1. Members: Matt Schueller - Chair, Vice Chair Ace Champion, Ald. Brian Johnson, Kathy Hinkfuss Present: Matt Schueller, Ald. Brian Johnson, Eli Hicks, Excused:Ace Champion, KathyHinkfuss C. APPROVAL OF THE AGENDA. 1. Approval of the Agenda for the April 8, 2022, meeting of the Community Development Block Grant Revolving Loan Committee. Moved by Ald. Brian Johnson, seconded by Matt Schueller to approve the agenda. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. D. APPROVAL OF MINUTES. 1. Approval of the minutes from the March 16, 2022, meeting of the Community Development Block Grant Revolving Loan Committee. Moved by Ald. Brian Johnson, seconded by Eli Hicks to approve the minutes. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. E. REGULAR BUSINESS. 1. Election of Officers - Chair and Vice Chair Ald. Brian Johnson nominated Matt Schueller as Chair. A vote was taken and Matt Schueller was elected as Chair. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. Ald. Brian Johnson nominated Ace Champion as Vice Chair. A vote was taken and Ace Champion was elected as Vice Chair. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. 2. Consideration with possible action on request by 30KFT, LLC, dba Gentle Vet Animal Hospital, S.C., for a loan in the amount of $150,000 from the Community Development - Revolving Loan Fund (CD-RLF) program. The Committee may convene in closed session pursuant to Sections 19.85(1)(e), Wis. Stats., for purposes of deliberating or negotiating the sale of public properties, investing of public funds or conducting other specified public business as necessary for competitive or bargaining reasons. The Committee will thereafter reconvene in open session pursuant to Section 19.85(2), Wis. Stats., to take action on items discussed in closed session, if appropriate, and to consider the remainder of the agenda. Moved by Ald. Brian Johnson, seconded by Matt Schueller to open the floor for discussion. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. Moved by Ald. Brian Johnson, seconded by Eli Hicks to close the floor and return to regular business. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. Moved by Ald. Brian Johnson, seconded by Matt Schueller to open the floor for discussion. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. Moved by Ald. Brian Johnson, seconded by Eli Hicks to close the floor and return to regular business. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. Moved by Matt Schueller, seconded by Ald. Brian Johnson to approve the loan request by 30KFT, LLC, dba Gentle Vet Animal Hospital, for a CD-RLF loan in the amount of $150,000 to be used toward the land acquisition at 2560 University Avenue for their new animal hospital. The interest rate will be 4 percent amortized over 20 years with the first eighteen (18) months being interest-only payments during the construction period. GVAH will need to create a minimum of five (5) full-time positions with 51 percent of the positions created to be filled by individuals of low-to-moderate income per (HUD) Housing and Urban Development guidelines. The City of Green Bay is willing to be in a subordinate loan position behind Johnson Bank and the SBA. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. 3. Consideration with possible action on request from The Legacy Green Bay, LLC, for a loan in the amount of $150,000 from the Community Development - Revolving Loan Fund (CD-RLF) and a second loan in the amount of $100,000 from the Economic Development - Revolving Loan Fund (ED- RLF). The Committee may convene in closed session pursuant to Sections 19.85(1)(e), Wis. Stats., for purposes of deliberating or negotiating the sale of public properties, investing of public funds or conducting other specified public business as necessary for competitive or bargaining reasons. The Committee will thereafter reconvene in open session pursuant to Section 19.85(2), Wis. Stats., to take action on items discussed in closed session, if appropriate, and to consider the remainder of the agenda. Moved by Ald. Brian Johnson, seconded by Matt Schueller to open the floor. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. Moved by Ald. Brian Johnson, seconded by Matt Schueller to close the floor and return to regular business. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. Moved by Ald. Brian Johnson, seconded by Eli Hicks to approve the request by The Legacy Green Bay, LLC for the request for a loan in the amount of $150,000 from the CD-RLF program and the request for a loan in the amount of $100,000 from the ED-RLF program. Both loans will be at 4 percent interest for amortized over 10 years with a minimum of five (5) full-time positions created with at least 51 percent of the created positions offered to individuals of low-to-moderate income as defined by Housing and Urban Development (HUD) guidelines. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None. 4. Consideration with possible action to review and update the 2015 CD-RLF Policies, Procedures, and Guidelines. As discussed by the committee and staff, Elections of Officers will be added to the 2015 CD-RLF Policies, Procedures and Guidelines. Election of Officers will be held during the first scheduled meeting of the year. F. INFORMATIONAL. 1. RLF Loan Status Report. Wendy Townsend presented the RLF Loan status Report. G. ADJOURNMENT. Moved by Eli Hicks, seconded by Ald. Brian Johnson to adjourn. Motion Passed. Yes- Matt Schueller, Eli Hicks, Brian Johnson, No- None, Abstain- None.  Report to the Community Development Block Grant Revolving Loan Committee of the City of Green Bay MEETING DATE PREPARED BY July 7, 2022 Wendy Townsend, Economic Coordinator AGENDA ITEM # E.1 Consideration with possible action on a request from Bay Area Burger Company's owner and operator, Cole Ductan, requesting $35,000 in Community Development Revolving Loan Funds for a working capital loan for his new business location at 126 S. Broadway. The Committee may convene in closed session pursuant to Sections 19.85(1)(e), Wis. Stats., for purposes of deliberating or negotiating the sale of public properties, investing of public funds or conducting other specified public business as necessary for competitive or bargaining reasons, and Section 19.85(1) (g), Wis. Stats., for the purpose of conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved. The Authority will thereafter reconvene in open session pursuant to Section 19.85(2), Wis. Stats., to take action on items discussed in closed session, if appropriate, and to consider the remainder of the agenda. BACKGROUND Mr. Cole Ductan is expanding his current food truck business into a brick and mortar location at 126 S. Broadway. He opened his food truck in 2020, and took Green Bay by storm. He plans to continue his food truck, in addition to giving the community of Green Bay the same concept at a trendy dine-in location in a newly renovated historic building in the Downtown Broadway District. The primary lender for this project is Fortify Bank. They have committed to a loan of $200,000 and Mr. Ductan has committed a personal equity contribution of $50,000 to his original projected project budget of $250,000. Mr. Ductan has had multiple unforeseen expenses due to the historic nature of this property and recent escalating construction costs that have caused him to use his cash reserves, now creating a shortfall of $35,000. The Community Development Revolving Loan Funds will be used for working capital to help fund opening expenses, inventory and wages and will be utilized within the first month or two of disbursement. RECOMMENDATION Staff recommends funding the request for a $35,000 working capital loan for Bay Area Burger Company from the Community Development Revolving Loan Funds with an interest rate of 5% amortized over 5 years. Bay Area Burger Company will need to create one (1) full-time position to be offered to an individual of low-to-moderate income and a personal guarantee. FISCAL IMPACT ATTACHMENTS 1. RFL Application - Bay Area Burger Co - 06.22 100 North Jefferson Street, Green Bay, Wisconsin 54301-5026 greenbaywi.gov  ED-RLF Loan Status for Open Accounts 6/23/2022 Contract Loan Principal Payment Last Date Amount Balance Amount Payment Notes 1 Tasty Treats 10/31/18 $140,000 $116,611.11 $1,061.67 Jun-22 Current 2 Motel 6 11/07/18 $60,000 $0.00 $0.00 N/A Paid off 3 Chef Champion 01/31/20 $12,000 $11,110.22 $74.58 Jun-22 Current 4 Legacy Green Bay 04/08/22 $95,000 $95,000.00 $961.83 N/A Past Due $307,000.00 $222,721.33 $2,098.08 AVAILABLE FUNDS : $3,744.85  CD-RLF Loan Status for Open Accounts CD-RLF Loan Status for Open Accounts 6/23/2022 Contract Loan Principal Payment Last Date Amount Balance Amount Payment Notes 1 Initiative One 02/24/15 $105,000 $35,064.47 $1,063.07 Jun-22 Current 2 Puro Clean 03/31/16 $125,000 $82,450.46 $924.61 Jun-22 Current 3 Gather on Broadway- eq 06/15/16 $117,000 $69,869.01 $1,465.69 Jun-22 Current 4 U&I Movers Express, LLC 12/21/16 $147,200 $103,867.48 $1,088.82 Jun-22 Current Credit Management 5 12/29/16 $81,500 $58,732.80 $602.85 Jun-22 Current Control, Inc 6 929 Cedar, LLC 09/15/17 $250,000 $191,215.89 $1,849.22 Jun-22 Current 7 Mason Realty LLC 10/02/18 $250,000 $175,452.07 $2,531.13 May-22 Current Historic West Theater, 8 10/11/18 $87,000 $80,301.66 $1,100.00 Jun-22 Current LLC 9 Badger Brewing - eq 11/27/18 $140,000 $129,304.50 $877.62 Jun-22 Current 10 Badger Brewing - const. 11/27/18 $110,000 $61,024.42 $2,533.70 Jun-22 Current 11 Motel 6 (DS2) 01/08/19 $40,000 $0.00 $0.00 Mar-22 Paid off 12 Chef Champion 01/31/20 $35,000 $32,805.45 $116.67 Jun-22 Current 13 White Dog 06/04/20 $30,000 $20,503.76 $303.75 May-22 Current American Tent LLC - 14 06/15/21 $215,000 $198,668.37 $2,176.78 Jun-22 Current EQUIP 15 American Tent LLC -WC 06/16/21 $35,000 $32,341.36 $354.36 Jun-22 Current 16 Motel 6 (PSR) 03/16/22 $250,000 $247,662.78 $1,849.22 Jun-22 Current Funds not 17 Gentle Vet 04/08/22 $150,000 $0.00 $0.00 N/A drawn Funds not 18 Legacy Green Bay 04/08/22 $150,000 $0.00 $0.00 N/A drawn $2,317,700.00 $1,519,264.48 $18,837.49 5/30/2022 Program Income 306,437.57 HUD held funds 0.00 $ 306,437.57