M E M O R A N D U M City of Salem 101 S. Broadway, Salem, IL 62881
Jane Marshall, CMC Phone: 618 548-2222, ext. 20
Date: March 3, 2010
TO: WJBD Radio
Salem Times Commoner
Cc: Mayor and City Council
NOTICE OF SPECIAL MEETING
OF SAME CITY COUNCIL
PURSUANT TO THE OPEN MEETINGS ACT, notice is hereby given that the Salem City Council will meet at 9:00 A.M. on Monday, March 8, 2010 in the Council Chambers of Salem City Hall, 101 South Broadway Salem, Illinois, for the following purpose:
To consider amending redevelopment agreement with Rebecca Carpenter
and Douglas Monical for property located at 217 W. Main Street
(former Bryan-Bennett Library).
CITY OF SALEM, ILLINOIS
Dated at 3:00 p.m., this 4th day of March, 2010
SPECIAL MEETING OF CITY COUNCIL
March 8, 2010
The Salem City Council met on Monday, March 8, 2010, at the hour of 9:00 a.m. in the Council Chambers of Salem City Hall, 101 S. Broadway Salem, IL 62881 for the purpose to consider amending redevelopment agreement with Rebecca Carpenter and Douglas Monical for property located at 217 W. Main Street (former Bryan-Bennett Library).
The meeting was called to order by Mayor Pro Tem Tom Carr.
Council Members present upon roll call:
Councilman Tom Carr (Mayor Pro Tem)
Councilman Kip Meador
Councilman Steve Huddlestun
Councilman David Black
City Manager Thomas F. Christie
City Attorney Michael Jones
City Clerk Jane Marshall
Economic Dev. Director Tracey McDaneld
Absent: Mayor Leonard E. Ferguson
Councilman Meador left the meeting following roll call to avoid a conflict of interest.
Also present: Bruce Kropp, WJBD Radio
Economic Development Director McDaneld distributed a copy of the Redevelopment Agreement between the City of Salem and Rebecca Carpenter and Douglas Monical that was executed on November 4, 2009. She explained that initially the developers intended to utilize their own funds to complete the project, but have since decided to utilize conventional financing. They have been approved for the entire loan amount of $250,000 by Marion County Savings Bank and in order to close on the loan, the bank is asking to take a position on the collateral of the building. She further explained that the loan will be a typical construction loan that will require the developers to submit costs incurred as they drawdown the money from the bank. This is also the procedure that the City has in place to insure that the
costs associated with the project are TIF eligible. The bank has submitted a subordination agreement that will allow the bank to extend financing to the developers and is asking that the City be willing to subordinate its rights in and to the property to the lien of bank’s mortgage. She further commented that it is anticipated that the drawdown process will take between six weeks to three months to complete and when the entire $250,000 benchmark is met, the City will release the agreement from the property.
Attorney Mike Jones indicated he would add a very short amendment to the Redevelopment Agreement to say that the City of Salem will approve the Subordination Agreement with Marion County Savings Bank not to exceed $250,000.00.
Councilman Black moved and Councilman Huddlestun seconded the motion to amend the Redevelopment Agreement between the City and Rebecca Carpenter and Douglas Monical for property located at 217 W. Main Street (former Bryan-Bennett Library) to provide for the subordination of the City’s interest to the Marion County Savings Bank not to exceed $250,000.00. Roll call vote. AYES: Councilmen Huddlestun, Black, and Carr. NAYS: None. Motion declared carried.
There being no further comments, at 9:06 am, Councilman Black moved and Councilman Huddlestun seconded the motion to adjourn the meeting. Roll call vote. AYES: Councilmen Black, Huddlestun, and Carr. NAYS: None. Motion carried.
Jane Marshall, CMC
Approved by City Council as written 3/15/2010.