Village of Louisville
April 05, 2017
6:00 PM Special Meeting
SPECIAL MEETING MINUTES
At 6:00 PM, the Village Board of Trustee’s met in Special Session, those in attendance were, President Dale Murbarger, Trustee Danny Miller, Trustee Nancy Byers, Trustee Troy Fender, and Trustee Angie Frye. Also in attendance were Attorney Barry Bright, Clerk Angela Stanfield, Treasurer Stephanie Bailey, Superintendent Troy Elwood. Trustee Gina Rinehart arrived at 6:10 PM. Trustee Steve Stortzum absent.
President Murbarger called the meeting to order at 6:00 PM.
Roll Call taken and the following Village authorities announced present at the beginning of the April 05, 2017 Special Meeting: President Dale Murbarger, Trustee Danny Miller, Trustee Troy Fender, Trustee Nancy Byers, and Trustee Angie Frye. Trustee Steve Stortzum and Trustee Gina Rinehart absent.
Pledge of Allegiance followed.
The purpose of the Special Meeting is to approve loan agreement with MDG Properties LLC, discuss request for TIF Assistance, and discuss variance for mobile home.
Village board discussed Loan Agreement with MDG Properties LLC, Marty Garrett of Glamour Farms Boutique.
Trustee Gina Rinehart arrived at 6:10 PM
Village board discussed request for TIF Assistance from Kenneth Parker of K&R Restaurant. Kenneth Parker submitted estimates for consideration of TIF Assistance for improvements to his business, K&R Restaurant located at 850 Chestnut Street. Village board reviewed estimates for installing new lighted sign with electronic message board, $13,900 and $25,379.00 from Double Signs, Inc. from Teutopolis. Village board also reviewed estimate for new metal roofing for $30,703 from Winterrowd Excavating & Construction of Louisville. Village board will review and consider eligibility for possible TIF Assistance for Kenneth Parker’s business, K&R Restaurant located at 850 Chestnut Street. Village board also will recommend Kenneth Parker to discuss business improvement options with South Central Illinois Regional Planning and Development Commission.
Village board discussed variance request from John Zink for a double wide mobile home that is more than ten years old to be moved on lot at 530 Broadway Street. No motion made to consider the variance request from John Zink to move a mobile home that is more than ten years old to the lot at 530 Broadway Street.
Attorney Barry Bright presented resolution for consideration which would approve a $125,000 loan to MDG Properties LLC, which is a land holding company owned by Marty Garrett. MDG Properties would then lease the property to Glamour Farms, a women’s clothing retail store, which is also owned by Mr. Garrett. Mr. Garrett has contemplated moving his Glamour Farm business to Flora, where he has received certain offers of assistance, but he has decided to stay in Louisville if he can get appropriate financing for purchasing a suitable site in Louisville. The reason that MDG needs another location is that Glamour Farms has outgrown MDG’s current location in Louisville where Glamour Farms is conducting its business. The proceeds of the village’s loan would be used to assist MDG in purchasing the Dustin Smith property located on 14094 Highway 45, Louisville, which is a larger property and which would then be the main asset of MDG after it sells its current property in Louisville. MDG will be getting another mortgage from a local bank for completing the purchase and to make renovations to the building. The village’s loan has a term of 25 years with 0% interest charged for the 1st five years, 1% interest for the 2nd five years, 2% interest for the 3rd five years, and 3% interest for the last 10 years. The village’s loan is conditioned on the amount of the village’s loan plus the amount of the bank’s loan being no more than the appraisal value that the building will have after making the contemplated renovations. The village’s mortgage will be a second mortgage behind the bank’s mortgage, and there will be no personal guarantees to the loan. The village must be provided title insurance for its mortgage. The loan terms provide that in the event that the ownership of the property should change, then the village can immediately call the loan due and payable. Also the loan terms provide that the village will have a right of first refusal for 25 years, which means that if MDG wants to sell the property, MDG must first give the village the option to purchase the building on the same terms before MDG can sell to the third party. The board discussed the risks of the loan being in a second position in the event of a default on the loan. The resolution authorizes making the $125,000 loan from the industrial fund (i.e. not from the TIF fund) provided that the above conditions are met and further authorizes the mayor and the chairman of the finance committee to review all documents, etc. to determine after consultation with the village attorney if those conditions have been met, and if so, then the mayor and clerk are authorized to execute all documents needed to complete the loan without the need of any further board action or approval. After discussion Trustee Byers made a motion to approve the resolution and Trustee Frye seconded the motion. Trustee Stortzum absent.
5 Ayes – 0 Nays – 1 Absent – Motion Carried
Village board discussed litigation and nuisances.
A motion to adjourn made by Trustee Frye and seconded by Trustee Miller at 7:25 PM. Trustee Stortzum absent.
5 Ayes – 0 Nays – 1 Absent – Motion Carried
Angela Stanfield, Village Clerk
Dale Murbarger, Village President