finance committee packet (3/5/2014)

8/21/2019 Finance Committee Packet (3/5/2014)

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~ t Q / ,Q (\\Q City of Troyu ~

FRIDAY MARCH 7 2014, 11:00 MFinance Committee

TROY CITY COUNCILCOMMITTEE MEETING NOTICECOUNCIL CHAMBERS CITY HALL100 S. MARKET STREET TROY OHIO

(Kendall [Chm.], Schweser, Tremblay)1 Provide a recommendation to Council regarding approving a loan from the Downtown BuildingRepair Loan Fund in the amount of 50,000 to P&C Ventures, LLC to assist with the purchase of the

property at 121 W. Franklin Street, as recommended by the Downtown Loan Review CommitteeConsideration of emergency legislation is requested.2 Provide a recommendation to Council regarding approving a loan from the Downtown BuildingRepair Loan Fund in the amount of 130,000 to Charles Sturwold for the purchase of the property

at 210 E Water Street, as recommended by the Downtown Loan Review CommitteeConsideration of emergency legislation is requested.

3-5-2014cc: Council

MayorMr. TitteringtonMr. LivingstonMr. StickelDepartment HeadsChamber of CommerceGovernment ClassBoard of EducationMedia


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~ t Q / ,ity of Troyu ~

MEMORANDUMTO:FROM:DATE:

Mrs. Baker, President of co _Patrick E. J Titteringtond4 JMarch 4, 2014

Patrick E. J ntteringtonDirector of Public Service and Safety

100 S. Market StreetP 0 Box 3003Troy, Ohio 45373www.troyohio.govphone: (937) 335-1725fax: (937) 339-8601pa rick. [email protected]

SUBJECT: DOWNTOWN BUILDING REPAIR REVOLVING LOAN - PEi:C VENTURES 121 W. FRANKLIN STREETRECOMMENDATION:That a 50,000 loan is approved by Council from the Downtown Building Repair Revolving Loan Fund (DBR) to P CVentures, LLC toward the purchase of the building at 121 W. Franklin Street.BACKGROUND:P C Ventures, LLC (Patricia Rose and Charles Sturwold) submitted an application for DBR funding to assist with thepurchase of the property located at 121 W. Franklin Street. The Downtown Loan Committee (DLC) met on March 4,2014 to review the following application:

50,000 loan 20 year repayment period 3 simple interest . Security for the loan will be second position mortgage on the building to be purchased.The DLC has recommended that City Council approve the loan based on the application.The report to the DLC indicated that the DBR loan is one-third of the purchase price, and the applicant is securing abank loan for the balance. The applicant is the owner of three other properties in the downtown, two of whichwere financed by DBR loans, and which are being paid according to the terms of the loan. Also, the applicant will bemaking an investment in the upgrade and maintenance of this property and plans to occupy the first floor of theproperty. This loan will result in the re-occupancy and revitalization of a building that has been vacant and hasbeen on the market to be sold for approximately 18 months.The goal of this loan program is to provide loans to qualified applicants to improve buildings in the downtown. Asloans are repaid, those monies are then available for other applicants. There is a sufficient DBR Fund balance tosupport the loan.REQUESTED ACTION:It would be appreciated i f you would assign to a Committee of Council consideration of a loan in the amount of50,000 to provide funding assistance for the applicant to purchase the property at 121 West Franklin Street basedon the terms outlined herein. We also ask for consideration of emergency legislation so that the loan can be closedin a t imely manner.

Cc: Mayor BeamishMr. Dando


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LttQ /,Q (\\Q ity of Troyu ~Date: March 4, 2014To: Patrick Titterington, Director of Public Service and SafetyFrom: James Dando, Development DirectorSubject: DBR Loan application from P&C Ventures, LLC

- - - ityHall100 South Market StreetTroy, Ohio 45373937) 339-96 1

Please ask City Council to consider approval of an application from P &C Ventures, LLC for aDowntown Building Repair Revolving Loan Fund (DBR) loan of 50,000 toward the purchaseof the property located at 121 West Franklin Street, formerly occupied by Murray, Wells,Wendeln & Robinson.P &C Ventures is the owner of three other properties in Downtown Troy, two of which werefinanced by DBR loans. This request is for a loan of 50,000 toward the purchase price of150,000. Main Source Bank is providing the primary financing in the amount of 100,000.P&C Ventures will perform an as-yet undetermined amount of much-needed maintenance andupgrades from its other rental income sources. The total project financing is:100,000 Main Source Bank loan 66. 7%50,000 City of Troy DBR loan 33.3%150,000 Total cost of acquisition phaseThe Downtown Loan Committee (DLC) met in public session on March 4 2014 and discussedthe project and the public purpose that would be served by approval of the loan. The buildinghas been on the market for a year and a half, attracting no serious buyer interest either as aresidence or an office/apartment. P&C Ventures intends to reoccupy the first floor for its ownoffices, currently located in its 220 West Main Street building. (The Main Street building willcontinue to be occupied by Rose Allstate Insurance and other commercial tenants.) The secondfloor will be reoccupied as an apartment. The public purpose for this D R loan is to assist thereoccupancy and revitalization of a deteriorating vacant building in the Downtown Troy HistoricDistrict and near the Public Square. The DBR loan leverages the bank loan and makes thebuilding revitalization possible. The financing structure does not depart from the adopted DBRGuidelines in that minimum owner equity of 10% ( 15,000), although not injected immediately,easily will be exceeded for repairs, which will be determined after possession of the property.Collateral will be a mortgage on the building, second to a mortgage to Main Source Bank.The DLC voted to recommend City Council approve the requested loan by emergency legislationand with the following parameters:

Borrower: P &C Ventures LLC Loan amount: 50,000 Interest rate: 3.0% simple annual interest Repayment term: 20 years Collateral: second mortgage


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February 10, 2014To: City of TroyFrom: Patricia Rose, P C Ventures, LLCReference: Troy Downtown Building Repair Program

Please find attached my application for Troy DBR funds totaling 50,009After sitting empty for 18 months, I have a contract to purchase the historical building one block fromthe Miami County Courthouse at 121 West Franklin Street. The property is on the corner of Plum Streetand West Franklin Street.The original .asking price by the seller was 199,900 but they have agreed to 150,000. The officebuilding is in need of renovations and repairs (see inspection document). Plumbing repairs, replacementof old knob and tube electrical wiring, bathroom renovations, roof repairs and demolition of a backporch because of a compromised foundation.It is my plans to begin repairs in 2014 with projected costs of 40,000.I am currently working with Main Source Bank, Lisa Schelin, on a first position mortgage in the amountof 100,000. I am asking the City of Troy and the loan commit tee to consider a second position of50,000. Combined with my investment of approximately 40,000 for repairs the tot l project is190,000.

The building will continue to be main floor commercial office space with an upstairs residentialapartment.Thank you for your time and consideration.Best regards,


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CITY OF TROY

DOWNTOWN BUSINESS BUILDING REPAIR LOAN PROGRAMAPPLICATION for LOAN FUNDS

APPLICANT/BORROWER CO APPLICANT/CO BORROWER

Full Name 4-frr r:VA /?__ose..- Full NameBIN BIN

Address ofResidence c:J0.55 /AJ6tJd5-/ock. C-t-.City/State/Zip Code m1. / )II ~ 73Telephone 937- j'/{L/--tbt/lf3 Fax f',37-- 3 3 ; l . ~ d f 4 QE-Mail (optional) fti/ynj ,ge_, { ) f r )- - - - - - . ~ - - - - - - -Total Project Cost=--$ - - / - - - - - - 0 - ~ , , _ _ ; t J _ O _ OPurpose ofLoan arc fia,s.-v / J ; ) / t ; ~ ~ @ ce-- { / a ~ 7 t J/Je b/t /cL 7 ?Yn

M t ~ m ; &u11b il>t


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BUSINESS INFORM TIONNameof usiness PtC ~ l u r e ? bf-( _,,/Address of Business c Z :;LO ?J )fl.ti n 1--City/State/Zip Code , 0 ff fJ33 73

T e l e p h o n e t f 3 J - J j : J i - ~ J43 Fax t J 3 f ~ ? ; 3 , ; L _ ~ t f d t / 3E-Mail optional) ~ e _ . @ ~ ( / . / - L J L - f e _ Cff. v iIBusiness Legal Status: Sole Proprietorship Corporation

Partnership L J _ LOther state)Years in Operation _4_ __- ' ; 1 ~ 1 _ 3 Federal Tax IDBusiness Borrowing Resolution Required? Yes

SOURCE ND USE OF FUNDSTroyDBR Other Equity

a ~ a d e ImprovementsInterior Rehab of Code Violations 3o{t?tJInterior Rehab Non-code Violations)* IAcquisition of Real Estate 1 kJ JOJoIOther List Below)

TOTALS:* - Not Eligible for Troy Downtown Business Repair RLF dollars.


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REAL ESTATE OWNED principal residence and any other real estate)Address Market Value Mortgage Balance

cfJ.()55 ~ a i - ; : ; - i t J , cf:.Cf-. @Ji o/f / L/;tltJtJ qq, f{tfO / ) 7 0 ~ / i a . lu 7 I {?5Jc:/t:-tllte_t ?_ J._/_tJ_?(}_._ __ t l _ 1 n _ ~ __ . - - o - t ~ 7 > _ - ~ - - r r - - - - 6 - ' _ l f ;_.- 7 ~ . _ 7 / ? t J _ t J _ - - - ~ / ~ ~ f t i - - t J - t J - O _ _ r - - i - - k ~ l l = > - f c : c l - 0- ~ - - - ~ _ e _ - ;M_(C?._11_1_SJ_r_T/ZJ_rJ-r-+-;:;_. _tJ_ f-____ , _ , _ A _ _ , , ~ ~ ~ - - - ~ / _ / f l _ . , , . . ~ r - t J t J ~ ; t c _ l / e r y )r'M/(}/ b f , f Y a 1 1 t / r } ; ~ f < ;-rvrO f o f 3 ~ t r C J Z J /tf f;/JOZJ FZ

l 0 ,PROPERTY INSURANCE COVERAGE FOR SUBJECT PROPERTYName and Address of Local Insurance Agent

Policy r31tATTACHMENTS

J:2rrler;r;qn Li7:5-urc-?nce -- ;J;e 1 c k e ~ < 3 C ~/lot 0k8 - Ma 11 ST'-. T7cJ f :::rlf

Amount of Coverage

Please check those that are attached and/or provide an explanation or status of attachment:Cost Estimates/Contracts ~ fz4i, Purcha. :.G L.itxi :}-n;;e_ef-Construction Plans/DrawingsTroy Historic District ReviewPersonal Financial StatementBusiness Financial StatementProperty DeedLease Agreement

Z7 I '


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CERTIFICATION OF APPLICANT(S)Please read the following statement. f you do not understand any part of it or have any questions aboutwhat you are being asked to sign, please ask someone from Troy Main Street or the City of Troy s Planningand Development Department to help you. Each applicant must sign below. Should any information onthis application be found to be false or incomplete, such findings may be grounds for denial of therequested assistance.I (we) certify that all information in this application is true and complete to the best of my (our) knowledge andbelief. I (we) understand this information is subject to verification.I (we) understand that the personal financial information contained in this application is necessary for evaluationof my (our) application for assistance. This information, however, will remain confidential and will not bedisclosed to the news media or other third parties. I (we) further understand that my (our) name, address, andtotal amount of assistance will be subject to public disclosure since public funds are being utilized to assist in theimprovement of my (our) property.PENALTY FOR FALSE OR FRAUDULENT STATEMENT: U.S.C. Title 1.8 Section 1001, provides:Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly andwillfully falsifies, conceals or covers up a material fact, or makes any false, fictitious or fraudulent statements orrepresentations, or makes or uses any false writing or documents, knowing the same to contain any false, fictitiousor fraudulent statement or entry . shall be fined not more than $10,000 or imprisoned not more than five years, orboth.

/' ~ a ~pplicant Date

Co-Applicant Date


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January 28, 2014 P CVentures LLC

Original Current Maturity MonthlyLender Name Amount Balance Date Rate Payment St.

6 1/2 EMain St Troy City of Troy 155,000 140,000 2036 2.0% 643

Main St, Troy Wright Pat Credit Union 205,000 i91,000 2036 4.5% 1,323

W Franklin St Troy City of Troy 197,000 195,000 2038 3.0% 964

Totals: 557,000 526,000 2,930


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~ t Q / ,Q f\\0 City of Troyu s ~MEMORANDUMTO:FROM:DATE:

Mrs. Baker, President of Patrick E. J. Titterington fMarch 4, 2014

Patrick E. J. Titterington - 100 S. Market StreetP. 0 Box 3003Troy , Ohio 45373www.troyohio.govphone: 937) 335-1725fax : 937) 339 -8601pa rick. [email protected]

SUBJECT: DOWNTOWN BUILDING REP IR REVOLVING LO N - CH RLES STURWOLD FOR 21 E ST W TERSTREET

RECOMMENDATION:That a 130,000 loan is approved by Council from the Downtown Building Repair Revolving Loan Fund DBR) toCharles Sturwold for the purchase of the building at 210 E. Water Street and the adjacent vacant lot .BACKGROUND:Charles Sturwold has submitted an application for a DBR loan for 130,000 for the purchase of the property locatedat 210 E. Water Street. The Downtown Loan Committee DLC) met on March 4, 2014 to review the followingapplication:

130,000 loan 25 year repayment period 3 simple interest Security for the loan will be the first position mortgage on the building to be purchased.

The DLC recommended that City Council approve the loan based on the application.The DLC report indicated that the applicant will use his private resources for the clean-up and marketing of theproperty. This property has been vacant and on the market for almost 12 months. This loan will result in the reoccupancy and revitalization of a vacant building.The goal of this loan program is to provide loans to qualified applicants to improve buildings in the downtown. Asloans are repaid, those monies are then available for other applicants. There is a sufficient DBR Fund balance tosupport the loan.REQUESTED ACTION:It would be appreciated if you would assign to a Committee of Council consideration of a loan in the amount of130,000 from the DBR Revolving Loan Fund to provide funding assistance for the applicant to purchase the propertyat 210 E. Water Street based on the terms outlined herein. We also ask for consideration of emergency legislation sothat the loan can be closed in a timely manner.

Cc: Mayor BeamishMr. Dando


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~ t Q / ,Qt\\ ity of Troyu ~Date: March 4, 2014To: Patrick Titterington, Director of Public Service and SafetyFrom: James Dando, Development DirectorSubject: DBR Loan application from Charles Sturwold

- - - ityHall100 South Market StreetTroy, Ohio 45373937) 339-96 1

Please ask City Council to consider approval of an application from Charles Sturwold for aDowntown Building Repair Revolving Loan Fund (DBR) loan of 130,000 toward the purchaseof the property located at 210 East Water Street, currently owned y Edward Hobart. Theproperty, including a neighboring vacant lot, has most recently been used as a warehouse.Charles Sturwold is owner/operator of Leaf & Vine, 108 West Main Street.The Downtown Loan Committee (DLC) met in public session on March 4, 2014 and discussedthe project and the public purpose that would be served y approval of the loan. The buildinghas been vacant and on the market for nearly a year. The public purpose for this DBR loan is toassist the reoccupancy and revitalization of a deteriorating vacant building in the DowntownTroy Historic District and near the Public Square. It also is located in the east area ofDowntownTroy, which has become a priority concern to Troy Main Street, Inc.This request is for a loan of 130,000 toward the purchase of the property. Sturwold will use hisprivate resources for marketing and clean-up of the building. The type and extent of futurerenovations will depend on the ultimate use of the space. The financing structure does not departfrom the adopted DBR Guidelines in that minimum owner equity of 10% ( 13,000), although notinjected immediately, easily will be exceeded for repairs, which will be determined afterpossession of the property. Collateral will be a first mortgage on the building.The DLC voted to recommend City Council approve the requested loan y emergency legislationand with the following parameters:

Borrower: Charles Sturwold Loan amount: 130,000 Interest rate: 3.0% simple annual interest Repayment term: 25 years Collateral: first mortgage


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Date: February 12 2014To: City of TroyFrom: Charles SturwoldReference: Troy Downtown Building Repair Program

Please fine attached my application for Troy DBR funds totaling 130,000.The building has been vacant for several years; I have a contract to purchase the building at 210 EastWater Street. The proper ty is on the corner of Water and Clay Street.The original asking price by the seller was 150,000 but they have agreed to 130,000. The building andland is in need of renovations and upgrades. This primari ly includes renovations of 23 windows andparking lot paving.t is my plan to begin these improvements in 2014 with a projected cost of 51,000.

I am asking the ity of Troy and the loan committee to consider a loan of 130,000. Combined with myinvestment of approximately 51,000 for building and land improvements the total project cost is181,000.

Fully intend to create a remarkable destination business to improve Water Street and the economicaldevelopment of the downtown East side of Main Street. I am currently working with the Troy MainStreet to secure a viable tenant .Thank you for your time and consideration

Sincerely

Charles S Sturwold


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CITY OF TROY

DOWNTOWN BUSINESS BUILDING REP IR LO N PROGR MAPPLICATION for LOAN FUNDS

APPLICANT/BORROWER

Full Name ~ C - = h _ a r _ l e _ s _ S ~ t u _ r w - - o _ l d ~ - - - EIN

CO APPLICANT/CO BORROWER

Full NameBIN

Address ofResidence - - ~ l - 0 9 - - - - Y z - - W . : . . . . : . . . . . . = . e s : : : . . : : . t - - = - W . . : . . . . : : a = t e = r . . . . : : : : : S = - t - - - - - - - - - - - - - - - - - - -City/State/Zip Code Troy, OH 4537Telephone 937-605-2657 Fax 937-332-0773E-Mail(optional) - - h ~ u - - 0 . - c k ~ s - - t u r w = - - - - - o l - = d - = @ ~ g m ~ a - i l - - - . c - - o m ~ - - - - - - - - - - - - - - - - - - -

LOAN INFORMATIONCity DBR Request - - - = - l = : . . . . : 3 0 : : . . : i . . O . : : . . . . . : O ~ OTotal Project Cost =-$-----'1 8-=1 - -0--'-0-'--0Purpose of Loan Purchase property wi th Parcel Numbers DOS-000710 & DOS-000720 and address ofEast Water Street, Troy

Source ofFunds for Repayment -=.;R=en=-=t=al::....::In=c.=-..::o=m=-=e,___Proposed Collateral/Security for Loan Property 210 East Water Street, TroyEstimated Equity Value of Collateral/Security=-$Source(s) of Other Funds hi.vestment income and Employement income.

Present Commercial Borrowing=-$


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BUSINESS INFORMATIONN a m e o f B u s i n e s s _ - - ' L = = e a = f - = & - - ' - V ~ i n = e = - - - - - - - - - - - - ~ - ~ - - ~ ~ ~ - ~ ~ - - - - ~Address ofBusiness =1;....;::.0 = 8 =Wc.:.....:.......M=a=in::....:S:::::...:t:..:___.City/State/Zip Code - - = T = - = r - = . . . o y _ _ _ _ : O = H ~ 4 : : : . . : : 5 3 : : . _ : 7 - = - 3Telephone 937-605-2657E-Mail (optional) c h = u - c = k - - - s t u . : ; . . . ; . ; ; . ; ; ; ; r w ~ o l = d - = @ , , , . . . g m ~ a = i = l . c - o = m = - - - - - - - - - - - - - - - - - - - - -Business Legal Status: Sole Proprietorship Corporation

Partnership --=X-=----- Other (state)Years in Operation _ ; ~ Federal Tax ID _7 _1_57_6_7_11Business Borrowing Resolution Required?

SOURCE AND USE OF FUNDS

Fa9ade ImprovementsInterior Rehab ofCode ViolationsInterior Rehab (Non-code Violations)*Acquisition ofReal EstateOther (List Below)

Parking Lot

TOTALS:

Yes

TroyDBR

130,000

130,000-Not Eligible for Troy Downtown Business Repair RLF dollars.

No

Other Equity11 000

40 000

51 000


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REAL ESTATE OWNED principal residence and any other real estate)Address Market Value1583 1585 Leedes 160,000

PROPERTYINSURANCECOVERAGEFORSUBJECTPROPERTY

Mortgage Balance90,000

Name and Address ofLocal Insurance Agent Koverman Insurance - Joe Dickerson

Policy B== D= Amount ofCoverage - ' TB_D

ATTACHMENTSPlease check those that are attached and/or provide an explanation or status of attachmentCost Estimates/ContractsConstruction Plans/DrawingsTroy Historic District ReviewPersonal Financial StatementBusiness Financial StatementProperty DeedLease AgreementOther (List)


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CERTIFICATION OF APPLICANT(S)Please read the following statement. If you do not understand any part of it or have any questions aboutwhat you are being asked to sign, please ask someone from Troy Main Street or the City of Troy s Planningand Development Department to help you. Each applicant must sign below. Should any information onthis application be found to be false or incomplete, such findings may be grounds for denial of therequested assistance.I (we) certify that all information in this application is true and complete to the best of my (our) knowledge andbelief. I (we) understand this information is subject to verification.I (we) understand that the personal financial information contained in this application is necessary for evaluationof my (our) application for assistance. This information, however, will remain confidential and will not bedisclosed to the news media or other third parties. I (we) further understand that my (our) name > address, andtotal amount of assistance will be subject to public disclosure since public funds are being utilized to assist in theimprovement of my (our) property.PENALTY FOR FALSE OR FRAUDULENT STATEMENT: U.S.C. Title 18, Section 1001, provides:Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly andwillfully falsifies, conceals or covers up a material fact, or makes any false, fictitious or fraudulent statements orrepresentations, or makes or uses any false writing or documents, knowing the same to contain any false, fictitiousor fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or

bt>th."

2 IL(Applicant Date

Co-Applicant Date

. - ; : ; . . ; . ; : . . . . ; ~ ~ . . . : . . : . ... : : :::i : .. ~ . : - . _ i . ; ; ~ ~ - . . : . ..._: .__________ ___ :.________ ;._---' ""' ;.. : . ~ . . ; . ...._ ..,..+.;..;;....;...;....;.;._._ ... - ; . - ; . . . . ; ..... . . ~ ... ..ii-""'"" i o.O. .. . ; . ' ' ~ ; , . . ; . . '"'_..,.

finance committee packet (3/5/2014)

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