City of Centralia City Council met May 6.
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 3:01 p.m. requesting that the attendance be taken of those attending.
City Council and Staff Members Present: Mayor Herb Williams, Lowell Crow, City Manager; Rose Aldag- McVey, Economic Development Director; Kala Lambert; Assistant City Manager; and Kim Enke, City Clerk
The members of the public present included Chris & Rae Ann Quidgeon, Alicia Boehne, Jessiycka Coleman.
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 Rail Coffee Room, LLC and Salon Thairapy Inc.
She stated that there will be no displacement or relocation resulting from the proposed projects. Ms. Aldag McVey noted that through this hearing process, the City is soliciting and conducting an assessment of the Community Development and Housing Needs of our community. 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 Rail Coffee Room and Salon Thairapy. 2) The need for adequate, reliable, clean and affordable water supply. This need is being addressed through the 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 that is being addressed 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 along with 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 which is being addressed 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 May 12, 2020, to the Illinois Department of Commerce and Economic Opportunity, Office of Community Development.
The first application discussed was for Rail Coffee Room. 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: RAIL Coffee Room, LLC is a quaint restaurant and coffee shop at 216 East Broadway in downtown Centralia, Illinois and is considered a non-essential business per Executive Order 20-10; RAIL has closed during the pandemic. Chris and Rae Quidgeon desired opening businesses in Centralia, Rae’s hometown. They purchased an abandoned downtown two-story building in 2006 and set to work. They and their daughter live on the second story of the building and began work to open two businesses on the first-floor street level. After much research and years of work, RAIL Coffee Room incorporated in 2016 and opened to become a part of the community. The RAIL Coffee Room is a public draw to the downtown, not only for residents but for tourists.The business is visually appealing as the interior Railroad theme accentuates the history of Centralia which began due to the Central Railroad. RAIL Coffee Room is a true Mom and Pop operation. The Quidgeons are involved in the community, they assist in local benefits and participate in many local activities. As an example, they have developed and hosted an annual free downtown fall event that has drawn hundreds to the area to enjoy music, socializing, and family fun. RAIL Coffee Room and the Quidgeons are an integral part of the downtown community, the City has seen a revitalization of the downtown and increased interest in Tourism. Rail was financially progressing as anticipated and started turning a profit. Quidgeon states, “Closing our doors due to the virus has been devastating to our business. Ten employees were laid off and our rent/utility bills for the month of April are not able to be paid as a result of zero cash flow coming in.” But for the pandemic, the family business would have continued successfully without need for additional assistance, but with the forced closure, RAIL Coffee Room 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. “Once the Governor lifts the stay at home guidelines, my wife Rae and I plan to re-open RAIL Coffee Room and resume business within guidelines of social distancing. We plan to hire back our employees that are laid off as a result of COVID-19,” states Chris Quidgeon. 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 Quidgeons will reopen RAIL and will hire staff to their prior pandemic level. Chris Quidgeon adds the following: As a new business we were just reaching the point of making a profit after our hard work and money invested in the business. We feel that RAIL is a great asset to downtown Centralia, and we are desperate to find financial assistance after being informed by our bank that all monies for the PPP and EDIL had been exhausted. If approved, we will use this funding to order food, coffee, and supplies for the restaurant and use it for payroll for employees. We miss our staff and our customers, they have become part of our daily lives and are like family.
She noted the LMI data: This business site is at 84.62% LMI at block group 2, census tract 9526, Marion County, based upon 2011-2015 ACS data for use in 2020. The City of Centralia is at 59.83% LMI.
She 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.
The Rail Coffee Room grant application is available and will continue to be available for public review during regular business hours by contacting 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 RAIL Coffee Room, LLC, that will be considered by the Centralia City Council next week on Monday May 11, 2020. Jessiycka Coleman commented during this time in support of Rail Coffee Room during the public comment portion of the meeting concerning the grant application. She stated that she is huge supporter of Rail Coffee Room since they are a part of the heart of the downtown area. She stated that this brings a lot of traffic and travelers into the City to build the economy. She stated that many businesses begin in Rail before they open their doors due to hosting interviews and talking to the community to build their own businesses before they get into the community themselves. She stated that for years to come Rail Coffee Room will be beloved by the community and travelers that visit.
Next, Ms. Aldag-McVey presented the information regarding the City’s Downstate Small Business Stabilization Program grant application supporting Salon Thairapy 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: Salon Thairapy Inc. is a hair salon located at 227 West Noleman Street in Centralia, Illinois and is considered a non-essential business per Executive Order 20-10 and has closed during the pandemic. She read the submission provided by Alicia Boehne as follows: Hello, my name is Alicia Boehne and I’ve been a stylist for 21 years. I’ve worked at a few shops in my career and always knew I wanted to be an owner. I opened my place, Salon Thairapy on March 5th, 2013 in my hometown, Centralia. Never did I think I’d see the success we have. I’ve mentored several stylists into becoming extremely successful stylists and even talked my best friend into going into massage because of how strong her hands were. She now has probably the most successful massage therapy business in Centralia. Becoming a cosmetologist was always my dream and plan and anyone who knows me knows I’m extremely driven and always successful at what I do. In 2019 I added a boutique which consists of clothes and accessories for women inside of my salon, this explains the financial dip in 2019. It’s really started to take off. Due to the pandemic I’ve had to close the doors and now my income and all of my stylists’ incomes have gone away. The salon employs three individuals and has four booth rentals. I have really taken a hit on my financial situation. Being a single mother of a 3-year-old, currently going through a divorce, and owning a business and home in Centralia has been challenging but the business was good, and I was able to pay bills. Also, to support my four booth renters who also had to close, I have given rent forgiveness and so the normal income I was getting from my booth renters I’m not receiving any longer. I felt me as an owner couldn’t expect them to pay when they can’t make any income. The pandemic has stripped income and the funds are not incoming to pay ongoing bills including employees. The $25,000 grant funds will allow me to pay bills that are overdue and to pay staff. But for the pandemic, 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. Salon Thairapy will see a slow return to ‘business as usual’ in their service industry. I will do my part and rehire to three employees and resume renting booth space; we will extend work hours and we will be working more days per week. I have thousands of dollars is clothing and accessories that are seasonal that will have to be put at discounts at a loss as well. Within three months of reopening, I anticipate 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. So please consider helping my small business so the hardships don’t have to go even further.
Ms. Aldag- McVey noted the LMI data: This business site is at 84.62% LMI at block group 2, census tract 9526, Marion County, based upon 2011-2015 ACS data for use in 2020. The City of Centralia is at 59.83% LMI.
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.
Ms. Aldag-McVey invited any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilization Program grant for Salon Thairapy that will be considered by the Centralia City Council next week on Monday May 11, 2020. There were no comments made.
With no comments or further discussion, the public hearing was adjourned by Mayor Williams at 3:18 p.m.
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