City of Centralia City Council met April 21.
Here is the minutes provided by the council:
A Public Hearing to discuss and consider the City’s proposed Downstate Small Business Development Program grant applications. As per the COVID-19 Executive Orders, the meeting was held and attended remotely via telephone conference. Mayor Herb Williams, called the Public Hearing to order at 3:02 p.m. requesting that the attendance be taken of those attending.
City Council and Staff Members Present: Mayor Herb Williams, Rose Aldag-McVey, Economic Development Director; Bill Agee, Acting City Manager; Kala Lambert; Assistant City Manager; and Kim Enke, City Clerk
The members of the public present included Jim Rockett, Sonya Gettinger, Shannon Cooney & Mindy Cooney.
Rose Aldag-McVey explained that The Department of Commerce and Economic Opportunity (DCEO) has adjusted funds from the US Department of Housing and Urban Development to address needs specific to small businesses that have experienced detrimental impact due to COVID-19 through the new Downstate Small Business Stabilization Program. She added that this grant is designed to provide working capital to fund the community’s most vulnerable businesses economically impacted by the COVID-19 virus. The program makes funds available for 60 days of verifiable working capital up to a grant ceiling of $25,000 to eligible businesses.
She stated that the purpose of the hearing is to discuss and consider the City’s proposed Downstate Small Business Stabilization Program grant applications for local small businesses in the amount of $25,000 each to aid the following businesses: Advantage Doors Inc., Crooked Creek Winery, and Hollywood Hair.
She stated that there will be no displacement or relocation resulting from the proposed projects. She added that through this hearing process, the City is soliciting and conducting an assessment of the Community Development and Housing Needs of our community for the application process. She detailed and listed those needs as follows: 1) The need for economic stabilization and development through support of local businesses and recruitment of new businesses to the community through the Downstate Small Business Stabilization Program which provides assistance to small businesses in the community, specifically at this hearing discussion of support for Advantage Doors, Crooked Creek Winery, and Hollywood Hair. 2) The need for adequate, reliable, clean and affordable water supply through CDBG assisted water tower rehabilitation in spring 2020 at the 8th street 750,000 gallon elevated water storage reservoir 3) The need for improved, efficient, safe, and reliable mobilization of residents, customers, visitors, and tourists through CDBG assisted street improvements including overlay Oak Park Drive from US Highway 161 to West 4th Street, including Oak Park Drive East, Oak Park Drive West and Middle Street, West 4th Street from Oak Park Drive to Randolph Drive and Randolph Drive from West 4th Street to US Highway 161. She stated that other improvements included STU assisted street improvements scheduled for the next three years include Hickory Street, South Locust and Gragg Street and MFT assisted Street improvements on East Broadway and Frazier Street. 4) Neighborhood stabilization by combating blight in neighborhoods where individuals have little funding to rehabilitate or demolish structures by demolishing dilapidated structures with assistance from the Illinois Department Housing Authority.
Ms. Aldag-McVey stated that the grant applications discussed in this hearing, subject to Council approval, will be submitted around April 28, 2020, to the Illinois Department of Commerce and Economic Opportunity, Office of Community Development.
The first application discussed was for Advantage Doors Inc. Ms. Aldag- McVey stated that the City’s Downstate Small Business Stabilization Program grant application supporting Advantage Doors includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances: In 2007, James Rockett purchased an established family business that sold and installed garage doors. He made the business his own by working out of his family home and was so successful he expanded to include a warehouse for the variety of doors the business was selling and installing. With ongoing growth, the business now has four full-time employees and further expanded in 2016 to be housed at their current location at 320 South Locust Street in Centralia. This location allows for continuing ongoing growth and expansion. Advantage Doors is an Illinois corporation. During the last three years, James Rockett has reinvested into their new physical structure. And, in 2019 they invested into equipment upgrades and additions which includes two new vans, a crane truck and a trailer, and equipment to allow expansion into the dock door and leveler arena. Business before COVID was good but has almost stopped due to the COVID pandemic. There are no incoming new business orders and homeowners and businesses are canceling or postponing previous orders. Advantage Door leadership anticipates business will resume back to normal a month after the ‘Shelter in Place’ order is rescinded. As there is no incoming revenue to pay bills, there is not sufficient permanent funding to sustain normal operating working capital needs. Advantage Door has bills that are now past due. Advantage Door has maintained the same employment level of four individuals even though there is no current work, Rocket is supporting them during this time but the company will not be able to continue to do so. To fund payroll Rockett has used credit cards; the business checking account balance is now under $2,000. Rockett cannot continue with this practice. Before the pandemic, Advantage Door would have continued successfully without the need for assistance; with environment changes of the COVID-19 pandemic, they are unable to finance operating costs. The $25,000 grant funds will be used primarily to continue payroll and to make partial payments towards $20,000 plus which is owed to suppliers. Advantage Door Inc. is committed to the community and will staff at the same levels of four full-time individuals after the COVID pandemic. At that time, the incoming revenues will again be able to support the prior epidemic level for working capital needs of payroll, operating costs, and short-term liabilities. She noted that this business site is at 84.62% LMI at block group 2, census tract 9526, Marion County, data based upon the 2011-2015 data for use in 2020. The City of Centralia is at 53.94% LMI. Supporting this project will not have an impact upon the community finances beyond grant preparation and administration, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. She stated that the Advantage Doors Inc. grant application is available and will continue to be available for public review during regular business hours by contacting her at raldag-mcvey@cityofcentralia.org.
Ms. Aldag-McVey invited any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilization Program grant supporting Advantage Door Inc. that will be considered by the Centralia City Council next week, Monday, April 27, 2020. There were not any public comments made during the public comment portion of the meeting concerning the grant application.
Next, Ms. Aldag-McVey presented the information regarding the City’s Downstate Small Business Stabilization Program grant application supporting Crooked Creek Winery which includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances: Crooked Creek Winery is a small, family operation which runs both Crooked Creek Winery at 24585 West 10th Street and Crooked Creek Downtown at 107 North Oak Street in Centralia. The winery on 10th Street is devoted to making wine delivering the truest expression of the local grape varietals. The offerings include a range of sweet to dry wines which are distributed for retail and offered April through December at the tasting room which also provides entertainment and foods while watching the family horses grace the surrounding pasture at this rural location. The Downtown wine bar offers the Crooked Creek wines plus a variety of beers and cocktails in a stylish relaxing atmosphere that includes entertainment and foods. Crooked Creek is an S Corp and the Crooked Creek Downtown location has urgent need and is the subject of this grant application. In 2014, the Cooney family seized the opportunity to make Crooked Creek their own after falling in love with the surroundings and the possibility of realizing their dream of making wine and raising kids and horses in a beautiful rural setting and that also involved embracing the Centralia community. The Downtown bar is in a historic building which was shuttered for many years. Further plans include expanding further into this building by adding a full restaurant with seating for over forty and employing seven full time equivalents. She reported that Crooked Creek has increased in revenue each year by 20% or more and was on track to meet their five-year plan of generating net gains in 2020; they expected to turn a net profit in 2020. They have invested working capital into ongoing renovations of the historic Downtown bar. She noted that the timing of the mandatory closure is very unfortunate for the business as both locations would have been generating income and they would have had money to pay the business costs of payroll, rent, utilities, inventory, etc. The Cooneys have used their credit cards to fund as much of the overhead expense as possible but they cannot continue in this manner. But for the pandemic, the family business would have continued successfully without need for additional assistance, but with the forced closure Crooked Creek Downtown is unable to meet the needs for working capital. There is no incoming revenue to pay bills, there is not sufficient permanent funding to sustain normal operating working capital needs. When reopening, the incoming revenues will again be able to support the prior epidemic level of working capital needs of payroll, operating costs, and short-term liabilities. Twenty-five thousand dollars from the Downstate Small Business Stabilization Program grant will be used to pay operating bills and payroll. During the mandatory closure, they will deep clean, communicate with customers, and maintain marketing. The Cooneys will reopen both locations and will hire staff to their prior pandemic level and add staff; they will re-employ the Manager and add one to two additional bartenders at the Crooked Creek Downtown location. Ms. Aldag-McVey stated that supporting this project will not have an impact upon the community finances beyond grant preparation and administration, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. She noted the LMI data: The downtown site at 106 North Oak Street is at 84.62% at block group 2, census tract 9526, Marion County, data based upon the 2011-2015 data for use in 2020. The 24585 W 10th Street is at 54.41% at block group 1, census tract 9005, Clinton County, based upon the 2011-2015 data for use in 2020. The City of Centralia is at 53.95% LMI.
Ms. Aldag-McVey invited any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilization Program grant supporting Crooked Creek Winery that will be considered by the Centralia City Council next week, Monday, April 27, 2020. There were not any public comments made during the public comment portion of the meeting concerning the grant application.
Ms. Aldag-McVey presented the information regarding the final City’s Downstate Small Business Stabilization Program grant application for Hollywood Hair which includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances: Hollywood Hair, LLC is a hair salon located at 1325 East McCord Street in Centralia, Illinois. Hollywood Hair was opened by Sonya Gettinger in 1994 and continues successfully to this date through her hard work and dedication to staff service excellence and a systematic approach to the business. She has been very successful with this business which has a strong positive reputation built over 26 years of service to the Centralia community and beyond. She added that each year Sonya invests into her employees, of which there had been twenty-two prior to the COVID non-mandatory closure order, and she encourages her staff to set goals for both their personal life and their professional life. Even during this closure, they are seeking online education to advance their skills and learn how to improve their and their customer’s safety. She noted that profits are routinely reinvested into the salon environment by renovations, upgrading stations and changes to the facilities. Hollywood Hair has received numerous awards over the years for the updated ongoing training of the staff, customer satisfaction rates, and the engaging modernized physical environment. She explained that Sonya gives back to the community by hosting annual fundraisers and participating in a variety of charities including MIRFA, Relay for Life, Alzheimer’s Walk, Amy Center, local youth sporting groups, civic organizations, and many more. She noted that the business has been strong and is based upon the daily service which she and her staff provide to customers, this is a full-service salon. With the Executive Order for closure of non-mandatory businesses due to COVOID-19, these twenty-two staff are without work and there is no incoming revenue to pay Hollywood Hair bills, there is not sufficient permanent funding to sustain normal operating working capital needs. When the Executive Order changes allowing hair salons to reopen, Sonya fully plans to reopen Hollywood Hair to an amazing comeback. She believes the hair business will resume slowly as fears of contracting the virus diminishes; with her strong history, Hollywood Hair will resume business as previously, with added safety measures, and will continue to grow each upcoming year. She will rehire and fill all twenty-two positions and anticipates service volumes to resume to their normal level within three months of reopening Hollywood Hair. Before for the pandemic, Hollywood Hair’s business would have continued successfully without need for assistance. With the forced closure the business is unable to meet financial obligations. The twenty-five thousand dollars from the Downstate Small Business Stabilization Program grant will be used to pay operating expenses such as rent, utilities, supplies, and inventory. Hollywood Hair will see a slow return to ‘business as usual’ in their service industry. Within three months of reopening, the incoming revenues will again be able to support the prior epidemic level of working capital needs of payroll, operating costs, and short-term liabilities. She reported that Sonya stated that this pandemic has made her realize how important the business is to her. She plans to rehire and hire more than she already had working with her. She explained that supporting this project will not have an impact upon the community finances beyond grant preparation and administration, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. She reported the LMI data: This business site is at 53.95% LMI at block group 2, census tract 9524, Marion County, data based upon the 2011-2015 data for use in 2020. The City of Centralia is at 53.95% LMI.
Ms. Aldag-McVey invited any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilization Program grant supporting Hollywood Hair that will be considered by the Centralia City Council next week, Monday, April 27, 2020. There were not any public comments made during the public comment portion of the meeting concerning the grant application.
With no comments or further discussion, the public hearing was adjourned by Mayor Williams at 4:22 p.m.
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