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~tQ'/, Q'(\\Q City of Troy us~
Monday, June 29, 2015, 6:00pm
Buildings Committee
TROY CITY COUNCIL COMMITTEE MEETING NOTICE
COUNCIL CHAMBERS, CITY HALL 100 S. MARKET STREET, TROY, OHIO
(Snee [Chm.L Oda, Phillips)
1. Provide a recommendation to Council regarding: A. Loan in the
amount of $850,000 to Troy Community Works from the DBR Revolving
Loan Fund
to provide funding assistance for the applicant to purchase and
renovate the property at 1 - 3 East Main Street based on the terms
as recommended by the Downtown Loan Committee.
B. That legislation includes deviating from the DBR Guidelines
of a loan amount exceeding $100,000.
Consideration of emergency legislation is requested so that the
loan can be closed in a timely manner.
Other Committees/items may be added.
6-23-2015
cc: Council Mayor Mr. Titterington Mr. Livingston Mr. Stickel
Department Heads Chamber of Commerce Bd of Education media
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~tQ'I, Q'(\\Q City of Troy Patrick E. J. Titterington I - - - .
. . -
us~ 100 S. Market Street P. 0. Box 3003 Troy, Ohio 45373
www.troyohio.gov phone: (937) 335-1725 fax: (937) 339-8601
[email protected]
MEMORANDUM
TO: FROM: DATE:
Mrs. Baker, President of co0Jil Patrick E. J. Titterington rM
June 19, 2015
SUBJECT: DOWNTOWN BUILDING REPAIR REVOLVING LOAN - 1 - 3 E. MAIN
STREET FOR TROY COMMUNITY WORKS
RECOMMENDATION: That an $850,000 loan is approved by Council
from the Downtown Building Repair Revolving Loan Fund (DBR) to Troy
Community Works towards the purchase and repair of the building at
1-3 East Main Street. BACKGROUND: Troy Community Works submitted an
application for a DBR loan for $850,000 for the purchase of the
property located at 1-3 East Main Street (aka the Saidleman
Building or David's Shoes). The Downtown Loan Committee (DLC) met
on June 17 to review the attached application. The building is
currently vacant. It has a prominent location on the Public Square,
but currently needs extensive work. The public purpose for this DBR
loan is to assist with the re-occupancy and revitalization of a
deteriorating vacant building located in the downtown historic
district. Troy Community Works is a non-profit community
development corporation with a mission focus on rehabilitating
buildings in Downtown Troy. Using loan proceeds, Troy Community
Works would acquire the building and make much-needed basic
improvements, such as roof and fa
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Page Two
It is noted that this loan structure departs from the adopted
DBR Guidelines in that the loan amount exceeds $100,000. With a
fund balance in excess of $855,000, the loan fund can accommodate
this loan. While the the fund balance would be nearly depleted by
this loan, it is noted that this loan opportunity also comes at a
good time for the Troy DBR program because of changes recently made
to CDBG rules by the Ohio Development Services Agency's Office of
Community Development (OCD). Using Troy's CDBG Program Income funds
for this project will prevent their being recaptured by OCD for use
in its other programs. As loans are repaid, those monies will be
retained by the City and are then available for other
applicants.
REQUESTED ACTION: It would be appreciated if you would assign to
a Committee of Council:
Consideration of a loan in the amount of $850,000 from the DBR
Revolving Loan Fund to provide funding assistance for the applicant
to purchase and renovate the property at 1 - 3 East Main Street
based on the terms as recommended by the Downtown Loan Committee.
We also ask for consideration of emergency legislation so that the
loan can be closed in a timely manner.
That legislation includes deviating from the DBR Guidelines of a
loan amount exceeding $100,000.
encl. cc: Mayor Beamish
Mr. Dando Mr. Harris
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~tQ'I' Q'(\\Q City of Troy us~
Date: To: From:
June 18, 2015 Patrick Titterington, Director of Public Service
and Safety (7~ Jim Dando, Development Director
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TROY COMMUNITY WORKS
June 12, 2015
Mr. James Dando Development Director- City of Troy, Ohio 1 00
South Market Street Troy, Ohio 45373
Dear Mr. Dando,
Troy Community Works (TCW) is pleased to submit an application
through the Downtown Building Repair Loan Program for the purchase
and redevelopment of the Coleman-Saidleman property at 1 East Main
Street. The 1850's era building is listed within the National
Register of Historic Places and represents a highly visible
community asset in need of historic redevelopment. This project
requires much-needed financial investment to revitalize and
preserve as a key historic landmark on the Northeast cotner of the
City's Public Square.
The TCW Board of Directors identified this project as an ideal
compliment to the successful revitalization work recently completed
at 221 East Main Street (The East Gate Building). TCW has the
demonstrated experience and the organizational mission to
successfully manage this rehab project, particularly when
navigating through state requirements. Upon completion of this
rehab project, TCW will have the opportunity to use net proceeds to
support future Downtown Troy revitalization projects.
Troy Community Works is requesting a defened forgivable loan
of$850,000, at 0% interest rate over a five year pedod. Although
this figure does not represent total rehab costs, it does cover the
purchase, exterior and the initial interior costs of the project.
However, no decisions can be made until the results of an
architect's feasibility study are obtained.
We hope this application meets both the spirit and intent of
TCW' s ability as a community partner to rehab this downtown
historic treasure. Should you or the Downtown Loan Committee have
any questions or need additional information, please don't hesitate
to contact me.
Thank you for your consideration of this application.
President, Board of Directors 317-532-7695 or
[email protected]
Attachments: DBR Application Basic Cost Estimate East Gate
Project Description & Sip, Savor, Share Brochure TCW Board
Member Bio Descriptions & Other Committees Building Purchase
Agreement
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CITY OF TROY
DOWNTOWN BUSINESS BUILDING REPAIR LOAN PROGRAM
APPLICATION for LOAN FUNDS
APPLICANT/BORROWER CO-APPLICANT/CO-BORROWER
Full Name _--..:::T:...:ro~v__::C=o=m=m~l=m~ity~W~o~rk=s:...!.-!
__ Full Name -----------------------------
EIN # 26-1535401 EIN#
Address of Residence -----~2~2~1 ~E~. M~a~in~S~t~re~e.!:,_t
-------------------------------------
City/State/Zip Code Troy, OH 45373
Telephone (93 7) 216-0313 Fax
--------------------------------
E-Mail (optional)
----~ri=ch.!.!..:.d:::.:.i;!.!.:ns~m:.:.!o~re~@:;,;:LC>:gt=n=ai=J.-=:.:co::::.!_m.::.__.
____________________________________ _
LOAN INFORMATION
City DBR Request ~$~8~50~,~00~0~------------------------Total
Project Cost ,%.$....:;:8-=-50.::..:~,-=-00~0;:..___
____________________ _
Purpose of Loan Purchase and rehab the Stewart and Marilyn Lipp
building, a vacant historic commercial
property located at 1 E. Main Street, Downtown Public
Square.
Source of Funds for Repayment
--'N~A~------------------------------------------Proposed
CollateraVSecurity for Loan First position lien on subject
property
Estimated Equity Value of Collateral/Security $199,900 I
$850,000 after project completion
Source(s) of Other Funds
Present Commercial Borrowing ~0!...__ _________________________
_
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BUSINESS INFORMATION
Name of Business Troy Community Works!
Address of Business 221 E. Main Street
City/State/Zip Code Troy, OH 453 73
Telephone (937) 216-0313 Fax _________________ __
E-Mail (optional) [email protected]
Business Legal Status: Sole Proprietorship ___ _ Corporation ___
_
Patinership ___ _ Other (state) Non-Profit 501(c)3
Years in Operation_--=E=i=gl=lt'--------- Federal Tax ID
-----=2:::...:::::6__,-l'-=5'-"'-3.:::..54_,_,0"-"l'----------
Business BotTowing Resolution Required?
SOURCE AND USE OF FUNDS
Fa9ade Improvements
Interior Rehab of Code Violations
Interior Rehab (Non-code Violations)*
Acquisition ofReal Estate
Other (List Below)
Pre-Development I Operating
TOTALS:
~X=--- Yes ___ No
TroyDBR
$300,000
$300,000
$199,900
$50,100
$850,000
Other
* -Not Eligible for Troy Downtown Business Repair RLF
dollars.
Equity
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REAL ESTATE OWNED (principal residence and any other real
estate)
Address Market Value Mm1gage Balance
221 E. Main Street (East Gate Building) $300,000 $175,200
PROPERTYINSURANCECOVERAGEFORSUBJECTPROPERTY
Name and Address of Local Insurance Agent Wolfenbarger Insurance
Agency LLC
1572 Allentown Rd, Lima, OH 45805
Policy# __________ _ Amount of Coverage ____________ _ _ _
ATTACHMENTS
Please check those that are attached and/or provide an
explanation or status of attachment:
Cost Estimates/Contracts
Construction Plans/Drawings
Troy Historic District Review
Personal Financial Statement
Business Financial Statement
Property Deed
Lease Agreement
Other (List)
Purchase Agreement Basic Cost Estimate
X
X
X
East Gate Project Description & Sip, Savor, Share Brochure
TCW Board Bio Description & Committees
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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 about what you are being asked
to sign, please ask someone from Troy Main Street or the City of
Troy's Planning and Development Department to help you. Each
applicant must sign below. Should any information on this
application be found to be false or incomplete, such findings may
be grounds for denial of the requested assistance.
I (we) certify that all information in this application is true
and complete to the best of my (our) knowledge and belief. I (we)
understand this information is subject to verification.
I (we) understand that the personal fmancia1 information
contained in this application is necessary for evaluation of my
(our) application for assistance. This information, however, will
remain confidential and will not be disclosed to the news media or
other third patiies. I (we) futiher understand that my (our) name,
address, and total runount of assistance will be subject to public
disclosure since public funds are being utilized to assist in the
improvement 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 depatiment or agency of the United States
knowingly and willfully falsifies, conceals or covers up a material
fact, or makes any false, fictitious or fraudulent statements or
representations, or makes or uses ru1y false writing or documents,
knowing the same to contain any false, fictitious or fraudulent
statement or entry, shall be fined not more than $10,000 or
imprisoned not more than five years, or both."
I Date
Co-Applicant Date
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Basic Cost Estimate
Purchase Price $ 199,900 Rehab /Pre-development* $ 650,100
Total $ 850,000
*Rehab I Pre-Development Cost Break Down:
Exterior- {Roof, masonry, windows, storefront)
Interior -(1st Floor)
Pre-Development soft cost- (operating, study, etc.)
**Interior Calculations:
$ 300,000 $ 300,000 $ 50,100
Tota I $ 650,100
1. $277,130- (3,959 square feet 1st floor (37'x107') x $70
Pre-Development Costs: 1. $1,600 2. $2,620 3. $4,500
Estimated Insurance ($133.33 month) Taxes ($218 month) Estimated
Utilities ($375 month- city water/sewer/trash; DP&L;
Vectren)
Total $8,720 I 12 = $727 month
4. Closing Costs 5. Immediate building care costs (lock changes,
utility changes, etc.) 6. Feasibility Study (assess building
systems; propose best uses followed by a project plan
timeline, and probable costs using restricted and limited
funds).
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The East Gate Building before.
The East Gate Building today.
To accon1plish great things) we n1ust dream
as well as act. ,.....,Anatole France
Welcome to the East Gate Building!
In 2007, as TCW was being founded, 221 E. Main Street was under
condemnation orders. Before demolition orders were enacted, local
developer Wade Westfall obtained the building from a trust. Seeing
potential in TCW, he sold what would become the East Gate Building
as our first project in 2010. The table below briefly illustrates
the project costs and funding sources.
Purchase $ 18,000 Exterior Repairs $168,200 Interior Repairs
$138,000 Soft Costs $ 14,000
total $338,200
City Loan $175,200 Ohio Finance Fund $120,000 Troy Foundation $
25,000 Oswald Foundation $ 18,000
total $338,200
Critical Collaborative Partnerships When reviewing the scope of
this rehab project what jumps out are key partnerships that emerged
at critical periods. These were moments when there was a need and
no answers, but time allowed the right people to come forward. The
community recognized the importance of improving the eastern
gateway into our historic downtown. To highlight a few of those
partnerships:
Local developer offered building for purchase to a new
non-profit;
Local funders donate towards the purchase and pre-development
costs;
Building water intrusion issue was resolved by local engineers
volunteering their expertise;
Obtained a loan from the City of Troy that allowed TCW to
leverage funds at the state level;
Local architect and general contractor step in to assist in
meeting needs within budget constraints;
Local volunteers assist in clean up at each step.
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2011 l\1ake A Difference Day Crew at 221 E. :Main.
About TCW:
Troy Community Works! is a community development corporation
focused on the City of Troy. The founding members established TCW
in 2007 with the goal of using technical expertise and
collaborative partnerships to preserve and enhance the vibrant core
of Troy. TCW works with existing civic, business, and community
organizations to support our 3 pillars of community
development:
Strengthening the downtown commercial and residential building
stock.
Neighborhood revitalization. Grassroots education and
organizing.
In addition to the work on the East Gate Building, TCW hosts an
annual Troy Fix It in conjunction with national Make A Difference
Day and is actively working with other organizations on their
development needs. TCW is a federally recognized 501 c3
organization. We welcome donations at any time and are proud to
recognize that our board has a 1 00%> rate of donating
financially to TCW as well as giving generously of their time.
Our Mission: TCW serves to enhance the long term 1\vell-being
and liveability of Troy through sustainable community
partnerships.
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i:'he EaslG-ate :Pr~jeef4:i 221 Jt~ MairiJStreet On April
of2013, Troy Community Works held a special ceremony called "Sip,
Savor, Share" to officially open the East Gate building to the
community. The event recognized all involved to make the project
happen, which included individuals, non-profits, for-profits, and
the city.
A Sip, Savor, Share 2-page green handout is attached, which
adequately describes the East Gate Project on how the building was
acquired, funds raised, and construction completed, all within
three years.
Concept to Pre-Construction Phase- 2010 & 2011 The biggest
milestone in the pre-consttuction phase was obtaining initial local
funds to start the project. TCW board members had to convince
donors to contribute towards rehabbing a building slated to be
demolished. After completing a structural analysis, a Phase I
Environmental Site Assessment, and a concept plan the entire
project was deemed worthy. Talented members of the TCW board were
able to secure enough funding from the Troy, Oswald and ITW
foundations to begin leveraging additional funds from both the city
and Ohio Finance Fund.
Construction Phase- 2012 & 2013 Construction plans and bid
documents were completed by local architect, Candy Goodall. Because
funds did not match consttuction bids in the spring, TCW had to go
tlu-ough the painful experience of rebidding the project. TCW was
happy to award the contract to a local developer and contractor,
Tony Blundell who completed the project in 2013. During the
eighteen-month construction process, members of the TCW board and
Development Committee managed the construction phase of the
project.
Marketing & Managing- 2013 & 2014 There was an overlap
in marketing and completing the consttuction phase of the building.
Tennant space was fmished as "vanilla box", meaning tenants were
expected to finish the space according to their business type. Due
to one member of the board working for a commercial real estate
firm, the building was professionally marketed through various
listing services, posted building sign and marketing brochures.
Numerous tenant prospects were vetted out, before fmally making a
selection. RT Industries was the first tenant on board with their
program "The Starting Point" and Jennifer Jessup opened Applied
Chiropractic in the second space. Both tenants filled the first
floor and completed their spaces, adding additional investment
value into the building. Property maintenance and lease management
continues with various ongoing responsibilities by the Development
Committee.
TCW's only loan obligation is with the City of Troy totaling
$175,200. Monthly payments begin in October of2016 at $146.00, and
increase to $648.00 in October of2017. The current tenant base
brings a positive cash flow, which is expected to continue even
after payments begin. In J anuaty of 2015, the TCW Board created a
restticted fund for building maintenance and for debt payment
reserves.
t=.ew:B.oiirif.-i\f1iit.ets: Richard Dinsmore, President: Rich
joined TCW in 2014 after witnessing the transformation of the East
Gate Building. He holds a B.S. in Industrial Design from the
College of Design, Art, Architecture, and Planning at the
University of Cincinnati. In addition, he continued his education
with postgraduate studies at The University of Michigan, Syracuse
University (ESF) and Lemoyne College in Syracuse. Rich spent over
20 years developing global consumer product and marketing
strategies to serve Not1h American, European, Asian, and Latin
America consumers. In 2012, after 30 years away from Miami County,
Rich returned to his Ohio roots. Rich and his wife Cheri purchased
and began restoring the original home of Augustus Stouder on South
Walnut Street. Rich brings a lifetime of corporate experience
paired with a passion for enriching downtowns.
Kent Frauen berger, Treasurer: Kent has been TCW's treasurer
since 2012 and has guided the organization in impmiant financial
decisions regarding the East Gate project and other effotis. Kent
is a retired corporate manager of United Retail (A venue) in Troy
with a specialization in accounting and a longtime downtown
resident.
Shane Carter: Executive Director for Lincoln Community Center.
Shanes understanding of Troy, his work with the Lincoln Community
Center, and his own personal expelience owning Carter's Complete
Services (a housing remodeling
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business) has been valuable to TCW. Shane brings grant writing
and program experience to the board as well as a unique perspective
on leadership demonstrated by being the 2014 recipient of the A.
Robeti Davies MD Memorial Outstanding Young Man award.
Jessica Echols: Executive Director for Partners In Hope. Jessica
joined the TCW board in 2013 and brings a background of non-profit
develop and marketing experience to the board. Her work at Pattners
In Hope and development contacts have aided TCW in the grant making
arena.
Luke Ernst: Luke was drawn to TCW after participating in the
2014 Second Stmy Secrets Tour. His background in engineering
coupled with his appreciation for Troy's historic hometown feel
propelled him to join the TCW board. Luke has been employed by
Abbott Laboratories since 2010 and moved to downtown Troy in 2014.
He currently resides on South Market Street in an 1880's era
building that has since been converted into a loft. Outside of
work, Luke is actively involved with Big Brothers Big Sisters of
the Greater Miatni Valley where he has developed an impactful
relationship as a mentor to a local 5th grade student.
Carlos Wood: Carlos is a US veteran, has four children, and
lives in Troy. Carols owns and operates a service business and has
firsthand experience in real estate, both in rehabbing and selling
homes as well as apartments. Carlos is putting that experience to
work on the TCW board which he joined in 2015.
Traci Turner: Tracy Tmner joined the Troy Community Works Board
in 2015. Tracy is a licensed massage therapist and has her studio
in the heart of Downtown Troy at the 405 building (SE Public
Square).She is the owner/operator of The Silver Scoop Custom and
Classic Cookies also located in Troy. Tracy has a passion for
restoring older homes, and is active locally in the WIBN (Women in
Business Network).
TCWDeV~lobfuenf.C6m.hitt~~: Jordan Romberger, CCIM: Past TCW
president and board member. As a professional commercial Realtor
for eight years at Miller-Valentine and three years at Our
Corporate Real Estate Deprutment (OCRD), Jordan has extensive
experience helping clients lease, buy and sell commercial real
estate in Troy and the greater Dayton region. Jordan has the CCIM
Designation (Certified Commercial Investment Member), a recognized
expett in the commercial and investment real estate industry. He
has successfully marketed and leased out the first floor of the
East Gate building and provides its propetty managetnent services.
In addition, Jordan serves on numerous community cotnmittees,
including Troy's Tax Incentive Review Council, CRA Housing Council
and is a Leadership Troy alumnus Class of2014. Jordan is married
with three kids and a proud downtown Troy resident, helping rehab a
second floor apatiment and now a historic home.
Mike Twiss, AlA, LEED AP: TCW co-founding metnber, past
president and board member. Over 20 years as an architect for
several fitms in Dayton and is currently a Principal for MODA4
Design. Mike also owns his own construction company Level Master
Builders and is a downtown resident. He has worked on many Adaptive
Re-use projects in Dayton and provided architech1ral services on
numerous downtown Troy projects including the East Gate Building,
offices and residential apmtments (above The Caroline) in the Dye
Building, as well as apattments above La Piazza and the fanner
Trinity-Nearly New building.
Rich Dinsmore, Shane Cruter, Lucas Et11st-TCW board members
serving on the development committee.
oili~fttaw :ct.:.nmitt~es: Second Story Secrets Committee- The
second annual Second Story Secrets Tour will take place September
19th. Cmmnunity metnbers serving on this committee include Jessica!
Echols (TCW Board Member), Martha HatTis, Jenny Anticoli, Kathi
Roetter, Penny Johnson, Shelly Calvert, and Sue Dankworth.
Troy Day of Caring (formerly Make A Difference Day) - TCW has
organized a Make a Difference Day Fix It Day for the past 8 years.
In 2014, along with our partners United Way of Troy and the Troy
Foundation the decision was made to move the fix it day to May and
rename it a Day of Caring. The first day of caring was recently
held on May 9th 2015 and featured many of our same community
partners. Community metnbers serving on this committee included
Barbara Hughes, Rich Dinsmore (TCW Board Member), Melissa Kleptz,
Penny Johnson, and Richard Bender.