~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

~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 patrick.titterington@troyohio.gov

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

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

~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

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 rich.dinsinore@gn1ail.c01n

Attachments: DBR Application Basic Cost Estimate East Gate Project Description & Sip, Savor, Share Brochure TCW Board Member Bio Descriptions & Other Committees Building Purchase Agreement

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!...__ _________________________ _

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) rich.dinsmore@gmail.c.om

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

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

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

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).

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.

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.

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

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.