Troy Local Development Corporation

Chair Board Members Heidi Knoblauch Hon. Monica Kurzejeski Hon. David Bissember Vice‐Chair Executive Director Andy Ross Steven Strichman Board of Directors Meeting Planning Department Conference Room City Hall 433 River Street, Suite 5001 Troy, New York 12180 June 28, 2019 9:00 a.m. AGENDA I. Approval of Minutes from the May 31, 2019 board meeting. II. King Fuels Clean-Up III. BDAP Loan – Eko-logic IV. Executive Director’s report V. Financials VI. Old Business VII. New Business VIII. Adjournment  Regular Board Meeting Minutes May 31, 2019 9:00 a.m. BOARD MEMBERS PRESENT: Heidi Knoblauch, Hon. David Bissember and Steve Strichman ABSENT: Hon. Monica Kurzejeski and Andy Ross ALSO IN ATTENDANCE: Justin Miller, Esq., Mary Ellen Flores, and Denee Zeigler D The regular board meeting was called to order at 9:00 a.m. I. Minutes R The board reviewed the minutes from the March 22, 2019 meeting. T Steven Strichman made a motion to approve the minutes for the March 22, 2019 meeting. AF Hon. David Bissember seconded the motion, motion carried. II. Property from the City of Troy Mr. Strichman explained to the board that we requested three properties from the city; one is a foreclosed property on Congress Street, one is a piece of vacant land on Federal Street behind Wolff’s Biergarten and the third is on Northern Drive. Mr. Strichman advised no action is required for this item. III. Geothermal Discussion Mr. Strichman advised the board that he has met with NYSERDA and discussed the possible creation of a geothermal district downtown. He noted there are a lot of potential development projects happening downtown that could benefit from this. M. Strichman noted that this is a great opportunity for us to align with the governor’s goals of renewable energy. Mr. Strichman advised he would like to apply for a CFA grant in July. He added that he is working to get three proposals together to help take us through the design process for monument square and with the grant application. Mr. Strichman advised he will present the board with additional information at the next meeting. IV. Financials 1  Ms. Flores noted there is $3.2 Million in assets with $2.1 in liabilities and $1.1 in equity. She advised no real changes since the last meeting. Ms. Flores noted a deficit of $2,500 for the month; all normal income and typical expenses. Mr. Strichman noted that we have not received the repayment of the escrow from the Section 108 Loan paid to the City. Steven Strichman made a motion to approve the financials as presented. Hon. David Bissember seconded the motion, motion carried. V. Executive Director Report Mr. Strichman noted that they did a walkthrough of the King Fuels site for the abatement/hazardous materials clean-up and responses are due bac in the next couple of weeks. He noted that they are trying to work with National Grid to coordinate the clean-up schedule. VI. New Business The chair noted that there are two downtown restaurants going out of business and advised this board can reach out to any potential incoming tenants to let them know about our loan program. The board agreed that the LDC should encourage local businesses to start up in Troy. VII. D Adjournment With no additional business to discuss, the LDC board meeting was adjourned at 9:25 a.m. R Hon. David Bissember made a motion to adjourn the LDC board meeting. Steven Strichman seconded the motion, motion carried. T AF 2  TROY.NY LOCAL DEVELOPMENT CORPORATION BUSINESS DEVELOPMENT ASSISTANCE PROGRAM (BDAP) Application for Funding Assistance Applicant: Kathleen Tesnakis 0wner: ____________________________ 291 Third St, Apt 1, Troy NY 12180 OwnerAddress: Email: i nfo@ekologic.com Telephone: ( )_27_4_-0_ _3_____ 518 81 ekologic, 1 Fulton St, Troy, NY 1 2180 us1ness/ProJ.ectAddress.,__: _______________________ B . 18, 500 1 0,000 Total Project Cost: _________ Loan Request: _· __________ Business Type: Corp. _x___ Partnership___ Sole Prop ____ Year Established: ____ 1996 FEIN: 93-1266971 Years at current address: Business ----- 6 Home ______ GrossAnnual Sales: $ 310 , 000 Other Sources of Income: $ ______ Income from alimony, child support, or separate ·maintenance payments need not be revealed. Examples of other income include social security, disability, or rental income. Ownership of Applicant Company: List aII . . Is wit onnc1pa . h 20°/co or more owners h.10: Name Title % Owned Annual Compensation Kathleen Tesnakis President, Designer 100 22,000 Affiliates: List all businesses in which applicant or any owner has an interest. Name Title % Owned Annual Compensation N/A 1 List all bank account information. Bank Name Checking Savings Other Balance Key Bank - X $2,200 Key Bank - X $350 X X List all s.ources of project funding, and dollar amount and use (s) of funds requested. Source of Funds Use of Funds Dollar Amount Family Loan Balance of booth fee $8,500 Total Project Cost $18,500 Total Funds Requested $10,000 Total Owner Equity Description of Collateral Offered: Collateral $ Value Mortgage/Lien $ Value 12 Industrial Sewing Machines $13,000 $13,000 2 !Macs desktops, 2 !Pads, Printer $3,200 $2,200 2005 Town & Country LTD $2,800 $2,800 Outstanding Debt (List all loans, credit cards, lines of credit, installment debt, leases, and mortgages) Lender Original Amt. Balance Monthly Payment N/A Additional Information: Is your business party to any claim or lawsuit? Yes X No Have you or any owner, officer, director or partner ever owned a business that has declared bankruptcy? Yes _X __ No Does your business owe taxes for other than the current year? Yes _X __ No If yes to any question, please explain: ________________________ 2 Short Project Description: Booth fee for 2019 Grand Central Holiday Market is $18,500, with $12,500 due Sept 5 and balance due Oct 14. . i, • .. ...,.. . .. '\ : Why is this loan crucial to start, expand or grow your business? Assistance with the Grand Central Booth Fee guarantee's our ability to participate in the annual fair. The loan will allow us to focus our cash flow on materials for anticipated growth and increased employee playroll. This will be our 7th year exhibiting at the Grand Central Holiday Market and our sales have increased every year by 10-15%, starting at $110,000 in Year 1 to $180,000 Year 6. This show represents approximately 50% of our annual gross sales. We have added 2 additional employee's in the past season. Repayment will be made in full prior to December 31, 2019. Is your business plan pro-forma with profit and loss projection statements attached (required)? YES NO Does your project create opportunities for employment? x YES NO If yes, how many FTE's? _1____ (2 Part Time = 1 Full Time Equivalent) Attorney: . . Name Paul Rapp Address 5 Corporate Drive Zip Code _0_1 2_45____ _ Telephone 413-553-3189 Accountant: Name Accounting For All Address 5 Corporate Drive Zip Code _1 2_0_65_____ Telephone _51_8-_38_3-_2 4_o6_______ 3 Trade References: 1. Name PiR€" OP'9L. §A-t..t..� Address 320 Harvard St contact Sue Stein Phone 617-739- 9066 ·-----=--"-----"'----=-=---=--------- 2. Name DA-v t D 8� '-/ Ce­ Address 297 River St contact David Bryce 518-273-3097 Phone·-------------- 3. Name AND"f l<..o $ S Address 79 102nd St contact Andy Ross Phone 518-464-0059 Insurance Agent/Bonding Company: Name Ten Eyck Group Address 1924 Western Ave Contact Tina D ockal Phone 518-464-0059 By signing below, my business and I both agree to be liable for the indeotedness incurred on this loan. I certify to the truth of my statements above and authorize the, Troy Local Development Corporation to obtain personal credit reports in connections with this application. If it does so, upon request, I Will be informed of that fact and each credit bureau's name and address. I atso authorize the Troy Local Development Corporation to verify with others infotmation contained in this application and to report its ttansactions with me, in th� event'of non-payment of any loan established hereunder. he Troy,Local Development Corporation certifies that it will comply with .all Federal statutes and regulations that prohibit. c;liscdmlnation on the basis of race, color, natiooatorigln, religiQ!'I, sex, handicap, age, or any ther nondiscrimination statute(s), which may apply to the applicant. Signat For questions, please contact the City of Troy's Economic Development Coordinator at (518) 279-7412 or economic.development@troyny.gov Please return completed form to: Troy Local Development Corporation 433 River Street, Suite 5001 Troy, New York 12180 4  Chair Board Members Heidi Knoblauch Hon. Monica Kurzejeski Vice‐Chair Hon. David Bissember Andy Ross Executive Director Steven Strichman June 24, 2019 Ekologic, Inc. Kathleen Tesnakis 1 Fulton Street Troy, New York 12180 Dear Ms. Tesnakis, The Troy Local Development Corporation (“TLDC”) proposes to grant the request by Ekologic, Inc. (the “Company”) for financial assistance under the following terms and conditions (“Term Sheet” or “Agreement”):  Purpose: Application fee for Grand Central Station Holiday Show and working capital to purchase materials, increase workforce and invest inventory for upcoming holiday season.  Amount: Ten thousand dollars ($10,000.00).  Estimated Monthly Payment: $445.468  Interest Rate: prime rate plus 1% - as of 06/24/19 rate would be 6.50%.  Maturity: 24 months  Repayment: Monthly payments of principal and interest based on a two (2) year amortization schedule.  Penalties: Five (5) percent of the monthly payment amount due if payment is more than fifteen (15) days late.  Security Required: Promissory Note, Loan Agreement, Security Agreement and Personal Guarantee from all equity owners of the Company.  Loan Closing and Disbursement of Proceeds: Loan Proceeds to be disbursed at closing to be used for application fee for Grand Central Station Holiday Market and working capital. Loan Closing will be scheduled within 30 days from the date the TLDC receives all documentation and preconditions listed below but not to exceed four months from the date of this Term Sheet.  TLDC Closing Costs: Company to pay all reasonable TLDC attorneys’ fees and all recording and filing costs.  Preconditions: o Submission of 2017 and 2018 tax returns for the Company and any other guarantors.  o Submission of Company Organizational Documents, including Articles of Organization, Operating Agreement, Good Standing Certificate and Authorizing Resolutions. o Submission of Documentary evidence of fire and liability insurance on locations of businesses. o Submission of details on all outstanding Company loans, subordination agreement(s) with other secured lenders. o Sign and return this Term Sheet to TLDC by, July 28, 2019.  Reporting: o Provide annual tax returns and financial statements within forty-five (45) days of December 31st. o Submission of an annual employment plan to the TLDC by February 15 of each year. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the day and year first written. by: ______________________________________ date: _____________________ Kathleen Tesnakis, Ekologic, Inc. by: ______________________________________ date: _____________________ Steven Strichman, Troy LDC Executive Director