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Transcription

ECON
NOMIC DEV
VELOPMEN
NT COMMIITTEE
WED
DNESDAY, APRIL 25, 2012 - 7:3
30pm
Lorrain
ne H. Morto
on Civic Cen
nter – 2100
0 Ridge Ave
enue, Room
m 2200
AG
GENDA
L TO ORDE
ER / DECLA
ARATION OF
O QUORU
UM
1. CALL
ROVAL OF MEETING
G MINUTES
S OF MARC
CH 28, 2012
2
2. APPR
3. STAF
FF REPORT
T
A. Update on Recent Ec
conomic De
evelopmentt Activities
B. Announcements / Updates from EDC Mem
mbers
n on Agend
da for Speciial Econom
mic Develop
pment Comm
mittee Mee
eting on
C. Discussion
Budget and Priorities for Balance of FY2012 – April 30
0, 2012
D. Discussion
n on Econo
omic Develo
opment Sum
mmit – Mayy 18, 2012
4. OLD BUSINESS
S
A. Consideration of Request from Tom
T
Fischl (Ofischl Sp
ports)
5. NEW BUSINESS
S
A. Consideration of Request from Chicago’s
C
H
Home of Ch
hicken & W
Waffles
6. COMMUNICATIONS
A. Real Estatte Transfer Tax Reporrt
B. Monthly Ec
conomic De
evelopmentt Communication
7. ADJO
OURNMENT
T
eeting: Mo
onday, April 30, 2012 (Special
(
Me
eeting on B
Budget/Priorities)
Next Me
O
Order of Agenda Item
ms is subje
ect to chan
nge. Inform
mation abou
ut the Econ
nomic Deve
elopment
C
Committee is availlable at http://www
w.cityofevan
nston.org/g
governmentt/ special--councilccommittees
s/economic--developme
ent-committtee/index.p
php.
Que
estions can
n be dire
ected to
JJohanna Nyden
N
at 84
47.448.8014. The Ciity of Evan
nston is co
ommitted to
o making a
all public
m
meetings accessible to perso
ons with disabilitiess. Any ccitizen nee
eding mob
bility or
ccommunica
ations acc
cess assis
stance sho
ould conta
act the Communityy and Ecconomic
D
Developme
ent Departtment 48 hours in advance of the sscheduled meeting so that
Page 1 of
55 e) or 847-44
a
accommoda
ations can be
b made att 847-448-8
8683
(Voice
48-8064 (T
TYY).
Meeting Minutes of
March 28, 2012
Page 2 of 55
DRAFT –
NOT APPROVED
ECONOMIC DEVELOPMENT COMMITTEE
MEETING NOTES
March 28, 2012
Attendees:
Committee Members:
C. Burrus, J. Fiske, S. Freeman, J. Grover, D. Holmes,
D. Mennemeyer, A. Rainey, L. Summers, M. Tendam, M.
Wynne, R. Zenkich
Committee Members Absent:
None
Staff:
W. Bobkiewicz, S. Griffin, N. Radzevich, P. Zalmezak, J.
Furey
Presiding Member:
M. Tendam
I. Call to Order / Declaration of Quorum
With a quorum being present, Chair Tendam called the meeting to order at 7:32pm.
II. APPROVAL OF THE MEETING MINUTES OF FEBRUARY 22, 2012
Ald. Burrus moved approval of the minutes, seconded by Ald. Fiske.
The minutes of the February 22, 2012 meeting were approved unanimously, 10-0.
III. Staff Report
A. Update on Recent Economic Development Activities
Nancy Radzevich, Manager of the Economic Development Division, provided an
update on the following items: 1) Benevolent, a TIC company, was featured in
Crain’s Chicago Business, 2) NuMat Technologies, an NU start-up, won a $100,000
grant in a clean energy challenge, 3) Soulwich was featured in Chicago Magazine in
March, 4) 30 Second Mom, an Evanston start-up app, was featured in Crain’s
Chicago Business, 5) Evanston Rebuilding Warehouse was featured in the Chicago
Tribune, 6) a new business, uBreakiFix opened downtown recently, 7) Carmen’s
Pizza has a new location on Chicago Avenue, 8) Yes, We Will Marketing Company
has opened, 9) Studio S.L.K. opened and had their ribbon-cutting, 10) Aquirent
relocated and expanded to 1603 Orrington Avenue over the past year, they added
40 new employees and their revenues are up sixty percent, 11) GFS Marketplace is
on track to open in June, 12) Northwestern Memorial Hospital is opening up new
office space at 1700 Maple Avenue and expect to be open in November 2012, 13)
Bright Horizons has been issued demo and interior construction permits, 14) coLab
Evanston will be hosting a TEDx event on April 18th at 6:30pm at the Music Institute
of Chicago, 15) the City is having a real estate broker forum on March 29th, 2012
with the Evanston Chamber of Commerce, and 16)
Economic Development Committee Meeting Notes – March 28, 2012
Page 1 of 6
B. Announcements/Updates from EDC Members
Chairman Tendam announced that the former Citgo gas station at the intersection of
Crawford and Green Bay Road has interest from Chase Bank to locate there. Ald.
Rainey announced that the Ward Eight Wine Bar officially executed a lease for their
space at 629 Howard Street, the Asian Improv Arts Theatre is interested in locating
on Howard Street and that the gas station at 140 Chicago Avenue was recently
purchased. Daniel Mennemeyer, speaking as President of the Evanston Chamber
of Commerce, announced a legislative breakfast will be taking place at the Hilton
Garden Inn on April 20th, 2012 at 7:30am.
C. Consideration of Special Meeting on Budget and Priorities for Balance of FY12
Ms. Radzevich explained that given the number of approved and potential funding
requests, Staff suggests the Committee considering holding a special Economic
Development Committee meeting to discuss the Economic Development budget and
establish priorities for the balance of Fiscal Year 2012. Ald. Rainey expressed her
support of the special meeting. Ms. Radzevichinformed the Committee that Staff
was researching into alternate funding sources and plans to present that information
as part of the budget discussions. Ms. Radzevich also suggested that the
Committee might want to also discuss the merits of subcommittees to discuss
projects in their early stages. April 30th, 2012 at 6:30pm was agreed upon by
Committee Members for this meeting.
Ms. Radzevich also asked the Committee if they would support hosting an Economic
Development Summit to brainstorm with public and private partners on way to
execute economic development priorities. Alderman Rainey noted that a summit
was held in 2010, and that she thought it was a good idea to reinstate this. Ms.
Radzevich suggested Friday, May 18th, 2012 at 8:30am in the Parasol Room.
IV. OLD BUSINESS
A. Downtown Evanston Update
Carolyn Dellutri, Executive Director of Downtown Evanston, introduced Russ Abel,
Chairman of the Downtown Evanston board. Ms. Dellutri explained that per the
agreement with the City of Evanston, she is required to provide the Economic
Development Committee with two updates per year on her organization.
Ms. Dellutri noted some marketing highlights including their “Greek Eats” program,
“Girl Whirl” weekend, Evanston Community Foundation, and Downtown Evanston
Mobile Application. A summary of plans for the 2012 Holiday season was also
highlighted. Ms. Dellutri detailed the success of Downtown Evanston business
cards, their use of social media, e-blast newsletter, sidewalk sale event, and
Downtown Evanston’s partnership with the Technology Innovation Center in
planning the upcoming CMS Expo and Makers Fair. Downtown Evanston will be
having their next Public Board Meeting on May 17, 2012.
Ms. Dellutri listed several new businesses that have opened recently including
Delbe’s Corner and Creperie Saint Germaine. Both have scheduled ribbon cuttings.
Ms. Dellutri described business retention efforts conducted by Downtown Evanston
and provided information on the spring clean up. Downtown Evanston has instituted
a new benchmarking chart to track progress and goal achievement.
Page 2 of 6
Ald. Burrus inquired whether or not a new business was moving in to the former
Carmen’s Pizza space on Davis Street. Paul Zalmezak, Economic Development
Coordinator, confirmed that a local business owner with an entertainment/restaurant
concept had signed a lease.
Mr. Mennenmeyer asked if Ms. Dellutri thought the landscaper was doing a good job
in Downtown Evanston. Ms. Dellutri stated they were impressed with their work.
Raymond Zenkich asked when Downtown Evanston will provide the Economic
Development Committee with additional metrics. Ms. Dellutri said they will be ready
for the next Economic Development Committee meeting. Mr. Zenkich questioned
the cost of insurance and administrative costs for Downtown Evanston. Ms. Dellutri
explained they always shop their insurance.
B. Consideration of Request from Tom Fischl (Ofischl Sports)
Tom Fischl read a prepared statement regarding his desire for a $350,000 loan to
reopen and market Ofischl Sports. Mr. Fischl was unable to answer any questions
because his lawyer was not present at the meeting. No action was taken on his
request for funding.
V. NEW BUSINESS
A. Consideration of Class “C” Cook County Classification for 1453-1459
Elmwood
Paul Zalmezak, Economic Development Coordinator, summarized the request for
the Cook County Class “C” incentive. Mr. Zalmezak explained that City Staff does
not recommend the City support this request at this time because the benefit to the
city is speculative, the tax reduction does not leverage an economic development
benefit, and City prefers a for-profit business locating on this site. To support Mr.
Cohn’s application, Mr. Zalmezak explained the City Council would have to adopt an
ordinance endorsing the Class “C” Classification.
Mr. Zalmezak introduced Randy Cohn, owner of the property at 1453-1459
Elmwood. Mr. Cohn provided a history of the property and explained the YMCA
childcare center was a prospective tenant until they learned about the potential
contamination. A ground penetrating radar survey of the site was conducted in
February 2012 confirming the location of the tanks. Mr. Cohn stated his desire to
remediate the site and stated an estimated cost of $150,000. To afford this, he is
asking for the City’s support in obtaining a Cook County Class “C” designation. Mr.
Cohn mentioned that Ald. Wilson is in favor of the site remediation.
Ald. Rainey expressed her concern that Staff didn’t recommend the County
incentive. Ald. Rainey asked Mr. Cohn if he ever received a No Further
Remediation letter from the State. Mr. Cohn confirmed he did have a No Further
Remediation letter but it was for the dry cleanerthat occupied the site prior to him
purchasing it and not for the gas station that occupied it previously.
Page 3 of 6
Mr. Zalmezak explained that the No Further Remediation letter confusion was not
uncommon. Environmental consultants are often hired to conduct targeted NFR
focusing on individual contaminants – in this case dry cleaning solution.
Ald. Wynne and Mr. Cohn discussed the history of the site, soil contamination
issues, his purchase of the property, and the remediation documentation he has. Mr.
Cohn explained he never received a letter from the Fire Marshall confirming that the
tanks had been removed.
Ald. Wynne asked Mr. Cohn about his rent rates and stated that his were higher
than surrounding properties. Ald. Fiske expressed her concerns over the lack of due
diligence performed by Mr. Cohn prior to site acquisition. She reminded the
committee that Simple Gourmet leased a storefront despite the alleged
contamination
Seth Freeman asked Mr. Zalmezak to explain the costs and benefits to the City of
the Class “C” incentive over its 12 year lifetime. Mr. Freeman emphasized that in
the worst case scenario, it would cost the City about $58,217 over a 12 year period,
after granting the Class “C” designation, to remediate the site. Ald. Grover asked
Mr. Cohn how he would remediate the site without the Class “C” classification. Mr.
Cohn confirmed the site would not be remediated without the Class “C”.
Ald. Burrus asked Mr. Cohn if potential tenants, other than the YMCA, had an issue
with the site contamination. She also expressed her concern for Mr. Cohn’s lack of
due diligence prior to acquiring the property. Mr. Cohn confirmed he was unaware
of the tanks being on site and that the contamination had been an issue with other
potential tenants. .
Ald. Grover asked the Committee if there was a better time to remediate this site.
Ms. Summers asked the Committee what the highest and best use of the site was –
and questioned whether it would be better to remediate the site at such time that
there was a planned development for a high and better use. Mr. Mennemeyer
asked Mr. Cohn if he wasn’t leasing the space because of his higher rents or site
contamination. Mr. Cohn stated he believed it was the contamination. Ald. Holmes
asked Mr. Cohn to confirm he received a receipt stating the tanks had been
removed in 1985. Mr. Cohn confirmed that he did have that document, and would
provide it after the committee meeting and that the company who created the
document is no longer in business.
Ald. Fiske questioned Mr. Cohn on his due diligence. Mr. Cohn stated he believed
the site was clean based on his due diligence. Ald. Fiske stated she wouldn’t
support this request.
Mr. Freeman asked if the YMCA provided Mr. Cohn with a letter stating their
reasoning for not leasing the space. Mr. Cohn stated that the YMCA was no longer
interested because of new competition in the market. Mr. Freeman stated that Cook
County offers this incentive because it believes in the long run, property taxes will
increase. Mr. Freeman voiced his support for the request. Mr. Zenkich also voiced
his support.
Page 4 of 6
Ald. Rainey listed benefits of remediating the site and examples of other sites
remediated with City support. Ald. Rainey stated her support for the incentive.
Ald. Burrus moved to approve staff’s recommendation of not approving the
Class “C” Classification, seconded by Ald. Fiske.
The Committee voted 7-4 against the recommendation.
Ald. Rainey moved to approve the Class “C” Cook County Classification for
the property at 1453-1459 Elmwood Avenue, seconded by Mr. Zenkich.
The Committee voted 7-4 in favor of the Class “C” Cook County Classification
for the property at 1453-1459 Elmwood Avenue.
C. Consideration of Request from Evanston Community Development
Corporation
Ms. Radzevich introduced a request submitted by the Evanston Community
Development Corporation (ECDC) for $50,000 to hire a one-time support staff
person to work from May 2012 until January 2013. The hired staff person would be
responsible for supporting the ECDC Board and developing a program for
microenterprise loans. Ms. Radzevich then introduced Bill Smith, Chair of the
ECDC.
Ald. Burrus asked why no financial statements or fundraising activity documentation
was provided to the Committee. Wally Bobkiewicz, Evanston City Manager, stated
that these documents were not requested for by City and that the ECDC was going
through a transition period currently. Ald. Burrus stated she would like to see the
organization’s financial statements.
Ald. Grover asked what ECDC’s plans were once the $50,000 has been spent for
the consultant. Ald. Rainey asked for ECDC board member information and any
previous consultant information.
Mr. Smith explained the request for $50,000 is to pay for an administrative staff
member to help the Board refocus the organization. Mr. Smith stated that ECDC
currently has no full time staff support to administer its micro loan funds, but that
there is a need for this program. Mr. Smith stated he would be willing and able to
provide financial documents requested by the Committee.
Ald. Wynne expressed that she would also like additional information. Ald. Wynne
asked if the City of Evanston has the capacity to perform the same tasks that the
ECDC performs and whether the City could hire a consultant for the same amount of
money to provide the same services ECDC provides.
Mr. Mennemeyer asked Mr. Bobkiewicz his opinion on the proposal. Mr. Bobkiewicz
stated that ECDC is in a unique situation and provides a unique service that’s
valuable to the community. He also suggested the ECDC should come back to the
next Economic Development Committee Meeting after submitting their financial
documentation.
Page 5 of 6
Ald. Burrus asked Mr. Smith to describe ECDC’s fund-raising efforts. Mr. Smith
explained that they have performed fund-raising but hadn’t raised enough money
yet, due to a lack of administrative support staff. Ald. Grover asked if the ECDC was
the only organization that provided their services? Mr. Smith replied they were. Ald.
Burrus questioned the ECDC’s ability to operate successfully even with the $50,000.
Ald. Burrus asked if the ECDC approached a bank or a private foundation.
Ald. Rainey asked if the City could take the lead and hire someone to serve as a
counselor or consultant to the ECDC Board. She stated that ECDC is not a startup
but an established organization. Mr. Smith agreed that they are an established
organization and described some of the companies they helped start including
Queen Bee Bakery, Now We’re Cooking, and Evanston Community Builders.
Ald. Fiske expressed her support for a City-hired consultant to help the ECDC. Mr.
Bobkiewicz suggested City staff and ECDC come back to the Economic
Development Committee in April with a new plan for assistance for ECDC.
Ald. Wynne stated she would like the new plan to include an analysis of hiring a
consultant for ECDC. Mr. Bobkiewicz stated he believed the ECDC should be
included on any consultant interviews. Mr. Smith stated that he would need to
obtain board approval to consider this alternative approach.
Ald. Holmes stated that buy-in of the organization on this idea would be important.
Ald. Rainey suggested Ald. Holmes and Ald. Braithwaite participate in any interviews
for this position.
VI. COMMUNICATIONS
A. Real Estate Transfer Tax Report
The Committee acknowledged receipt of the real estate transfer tax report.
B. Monthly Economic Development Communication
VII. Adjournment
Ald. Grover moved to adjourn the meeting, seconded by Ald. Wynne.
The Committee voted 11-0 unanimously to adjourn the meeting.
The meeting was adjourned at 10:09 p.m.
Respectfully submitted,
Jim Furey
Page 6 of 6
Consideration of Request
from Tom Fischl
(Ofischl Sports)
Page 9 of 55
Memorandum
To:
Chair and Members of the Economic Development Committee
From:
Nancy Radzevich, Economic Development Manager
Paul Zalmezak, Economic Development Planner
Subject:
Request for Financial Assistance for Ofischl Sports
Date:
April 20, 2012
Background
Since the last Economic Development meeting, Tom Fischl has continued to contact the
City Manager, staff and several Aldermen regarding his continued interest in seeking
financial assistance to reopen Ofischl Sports, Inc.
On March 30, 2012, Mr. Fischl contacted the City Manager via email and indicated he
will be presenting a request for a $350,000 grant to be used to reopen Ofischl Sports,
Inc in a location of his choosing. Mr. Fischl provided the following list of his proposed
uses of funds in the email:
•
•
•
•
•
Inventory – Ofischl Sport had an inventory of $125,000
Equipment – Screen Printing, Embroidery, and supporting equipment
Displays – Replenish all displays, racks, hangers, slat wall, and other
merchandising equipment.
Marketing
Legal Expenses
In a subsequent email to staff, several Alderman, and the City Manager, dated April 19,
2012, Mr. Fischl indicated that he is further updating his plans and is currently focused
on Evanston Plaza shopping center. He has begun posting the concepts on his website
at http://www.ofishonline.com/id110.html and plans to present the four options to the
Committee on April 25th.
Page 10 of 55
Consideration of Request
from Chicago’s Home of
Chicken & Waffles
Page 11 of 55
Memorandum
To:
Chair and Members of the Economic Development Committee
From:
Nancy Radzevich, Economic Development Manager
Paul Zalmezak, Economic Development Coordinator
Subject:
Request for Funding Assistance from Chicago’s Home of Chicken &
Waffles
Date:
April 20, 2012
Recommendation:
Staff supports a recommendation from the Economic Development Committee to the
City Council to lend up to $200,000 from the Economic Development Fund to Chicago’s
Home of Chicken and Waffles (CHCW) for the build-out of the building located at 2424
Dempster in Evanston, subject to the business owners filing a request to the Housing
and Community Development Act Committee to fund a portion of this loan through
CDBG funds.
The City’s participation in this project will be leveraging an additional $202,500 in
financing from First Bank and Trust, and the balance of the expected $764,500 project
costs will provided by the business owners.
The total amount of the loan from Economic Development Fund could be reduced
through the use of CDBG Funds.
As the project meets the national objective by
providing employment for low and moderate income individuals within the qualifying
Neighborhood Revitalization Strategy Area, staff will be recommending up to $75,000,
of the proposed $200,000 of City financial assistance, be funded through CDBG. This
alternate funding request will be presented to the Housing and Community
Development Act Committee at their next meeting, scheduled for May 15, 2012.
As the site is currently a foreclosed property owned by Itasca Bank and Trust, time is of
the essence for the business owners. Itasca Bank and Trust has agreed to extend their
option on the property and keep the property off of the market pending City Council
consideration of the proposal on May 14, 2012. The extension was granted by Itasca
Bank and Trust as a gesture in consideration of the staff’s and First Bank and Trust’s
current negotiations with the business owners. If the project is not approved on May 14,
2012, Itasca Bank has advised staff that they will put the property back on the market
and the CHCW business owners will lose their deposit on the property ($80,000).
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Given the time sensitive nature of the property acquisition deal, if the Economic
Development Committee recommends approval of this loan, staff will forward this
recommendation to the City Council on May 14, 2012. If use of CDBG is recommended
for approval by the Housing and Community Development Act Committee on May 15,
2012, staff will submit an updated financing plan to City Council for consideration at
their May 29, 2012 meeting.
Based on the owners’ experience in Bronzeville and Oak Park, along with the addition
of a liquor license in Evanston (see income statement attached), the restaurant is
projected to generate approximately $290,000 in sales and liquor tax revenues by the
end of 2014.
Funding Source:
Staff recommends utilizing funds from the Economic Development Fund Business
Attraction and Expansion Account (Account 5300.62660) Economic Development Fund.
The approved 2012 budget allocated $500,000 to this account for business attraction
and expansion activities. A total of $125,500 has been obligated. As summarized in
the recommendation section, the total funding assistance from the Economic
Development Fund could be reduced by up to $75,000 if CDBG funding is later
approved by City Council.
Background
Rosemary Barnett Malone, Tonya Van Dyke-Johnson and Darnell Johnson currently
own and operate two Chicago’s Home of Chicken & Waffles restaurants – one in
Bronzeville and the other in Oak Park – and are seeking to open their third location in
Evanston. The owners recognize Evanston for its “culturally rich diversity,” appreciate
the added market potential available through Northwestern University, and expect that
people from all walks of life will experience the restaurant. They anticipate the
Evanston location will be their premier restaurant from both a design and sales revenue
perspective.
The owners have identified 2424 Dempster Street in Evanston as their preferred
location. The restaurant will serve as a positive addition to a primary entry point into the
City via Dempster Street. At this new restaurant they project that they will employ
approximately 76 staff, with a best effort commitment to hire at least 75% of their
workforce from Evanston (57+/- Evanstonians). Based on the owners’ sales projections,
staff estimates that Chicken and Waffles will generate approximately $126,000 in
restaurant and liquor sales tax revenues for the City of Evanston in its first full year of
operation.
As summarized in the attached business plan, the owner’s of Chicago’s Home of
Chicken & Waffle “will strive to be the premier breakfast, lunch and dinner restaurant in
Evanston and its surrounding areas.” The restaurant serves its namesake dish and
other comfort food dishes in an “upscale atmosphere” and offers a “warm, soulful jazz
environment.” The owners claim there is no place in the Midwest that brings this unique
type of upscale environment. In addition to Evanston, the business owners expect to
Page 2 of 7
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draw from the North Shore, Skokie, Lincolnwood, Niles, Morton Grove, Park Ridge, Des
Plaines and the North Side of Chicago.
Overview of the Project:
Due Diligence
The property is located on the west side of Evanston in the 2nd Ward. The former Napa
Auto service station has been vacant approximately three years. The 4,761 square foot
building sits on an 8,338 square foot parcel. The most recent appraisal, completed
September 23, 2010, values the property at $375,000, or roughly $45/sq ft. The
business owners have an option to purchase the property for $282,500, or
approximately $34/sq ft – which is well-below the appraised value.
As part of their due diligence, the business owners commissioned ETS Environmental &
Associates, LLC to conduct a Preliminary Environmental Screening on September 6,
2011. Based upon the available information contained within the current environmental
database and site observations, the consultants has not identified any immediate on or
off-site potential environmental concerns that would require additional assessment.
Proposed Build-out
As summarized in Exhibit C., “Total Project Costs”, the estimated cost to build out 2424
Dempster is $482,000. The business owners are requesting a construction loan of
$200,000 to leverage an additional $282,000 in private equity ($132,000) and through
Express Working Capital ($150,000). Business partner Rosemary Malone is investing
$132,000 in the build-out, while the $150,000 loan financed through Express Working
Capital will be repaid through their collection of 8% of future daily credit card
transactions until the $150,000 is paid in full.
A conservative approach to analyzing the use of funds in a redevelopment project is to
allocate the assistance to improvements that are affixed to the building, thereby
securing the city’s investment in the real estate. The total estimated cost of the HVAC,
plumbing, framing, fire sprinklers and brick work exceeds the $200,000 City funding
request for build-out loan.
The City’s assistance will be filling a financial gap that conventional / private market
sources are unwilling to fill completely on their own. The project would truly be a public
private partnership with First Bank and Trust and the City’s loan each representing
approximately 26% of the total project cost, and the owners directly contributing a total
of 28%. The remaining 20% would be secured by the owner through the Express
Working Capital program.
Requested Assistance
The Evanston location of Chicago’s Home of Chicken and Waffles was originally
conceived as the lead restaurant of a five restaurant expansion throughout the
Chicagoland area.
However, the investor group partnership backing the expansion
dissolved after the business owners had already invested $40,000 on a purchase option
for the 2424 Dempster property, a bank-owned, foreclosure property. With the investor
group dissolving, Itasca Bank and Trust requested that the business owners pledge the
$40,000 deposit, and invest an additional $40,000 in return for an extension of the
Page 3 of 7
Page 14 of 55
closing date. This $80,000 nonrefundable deposit will be applied to the purchase price
at closing.
In the meantime, the business owners have estimated that the total project cost,
including property purchase will be $764,500. Upon dissolution of the investor group,
they made several failed attempts to obtain financing from a number of banks. Without
conventional financing options, Chicago’s Home of Chicken & Waffles is seeking to
launch the Evanston restaurant with assistance from the City of Evanston.
Of the total $764,500 project cost, the owners are proposing to invest $362,000 from
private sources, and are requesting a loan of $402,500. The private financing for the
build-out also includes $132,000 in private equity plus an additional $150,000 loan, in
the form of an “advance” from Express Working Capital. The latter is paid back through
8% fee on every customer credit card transaction.
With staff’s support of the project, contingent upon City Council approval, First Bank and
Trust has agreed to partner with the City by splitting the loan roughly 50/50. First Bank
and Trust will lend $202,500 for the purchase of the property and the City would lend
$200,000 toward the build out costs. First Bank and Trust will take the first position on
the mortgage, will place a lien on the business assets, and place a junior mortgage on
the Bronzeville property as collateral. The City would take a junior mortgage position.
Staff recommends the City of Evanston’s loan mirror the terms established by First
Bank and Trust as follows:
• Five year balloon note
• 20 year amortization
• Interest only payments for the first six months of the loan
• 5.75% Interest Rate over the term
The sources and uses for the proposed CHCW project at 2424 Dempster Street are
summarized in the table that follows (and in Exhibit D attached):
Chicago's Home of Chicken & Waffles - Sources and Uses
Sources of Funds
City of Evanston - Loan
First Bank and Trust - Loan
Private Equity
Express Working Capital - Loan
Total Sources of Funds
Total
$200,000
$202,500
$212,000
$150,000
$764,500
% of Total
26.2%
26.5%
27.7%
19.6%
100.0%
Uses of Funds
Property Acquisition
City of Evanston/First Bank – Mortgage
Private Equity
Property Purchase
$202,500
$80,000
$282,500
26.5%
10.5%
37.0%
Page 4 of 7
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Construction
City of Evanston/ First Bank- Buildout
Loan - Express Working Capital
Private Equity - Barnett Malone
Total Construction
$200,000
$150,000
$132,000
$482,000
26.2%
19.6%
17.3%
63.0%
Total Uses of Funds
$764,500
100.0%
Staff created the amortization schedule attached to this report as Exhibit A. Based on
the proposed terms of the loan, the following table summarizes the estimated payments
received under the proposed deal structure.
Chicago's Home of Chicken & Waffles Amortization Schedule
Payments to City of Evanston
$ 5,750 Total Months 1-6 (Interest Only Payments)
$ 75,825 Total Payments - Months 7 through 60
$ 172,957 Estimated balance due at end of 5th Year
$ 254,532
Estimated Total Payments Received
“Return on Investment” Analysis
Staff has reviewed the proposal and the sales tax generated by the project will cover the
requested loan within 30 months. Exhibit B, “City of Evanston Revenues,” provides the
estimated tax revenues and interest revenues generated by the project.
The table that follows summarizes the revenues for the period of the loan agreement. In
addition to collecting sales and liquor taxes, the City will also collect over $54,173 in
interest payments during the term of the loan. The interest and principal will be repaid to
the Economic Development Fund and will be used for future economic development
efforts while the sales and liquor taxes go to the general fund. It is likely the assessed
value will increase as well, therefore increasing property tax revenues.
Chicago's Home of Chicken & Waffles City Revenue Projections
Five Year Projection
Sales Tax
$335,110
Liquor Tax
$336,777
Interest payments from loan
$ 54,173
Total Revenues
$726,060
Recommendation
Staff supports a recommendation from the Economic Development Committee to the
City Council to lend up to $200,000 from the Economic Development Fund to Chicago’s
Home of Chicken and Waffles for the build-out of the building located at 2424 Dempster
in Evanston. The total Economic Development Fund contribution could be offset by
Page 5 of 7
Page 16 of 55
investing up to $75,000 in CDBG pending Housing and Community Development Act
Committee consideration on May 15, 2012 and Council approval on May 29, 2012.
The City’s assistance is filling a financial gap that conventional / private market sources
are unwilling to fill completely on their own. The project would truly be a public private
partnership with First Bank and Trust and the City’s loan each representing
approximately 26% of the total project cost, and the owners directly contributing a total
of 28%. The remaining 20% would be secured by the owner through the Express
Working Capital program.
Staff supports this public/private partnership and believes the use of Economic
Development Funds will leverage the following benefits for Evanston residents:
1. The owners have committed best efforts to hire 57 Evanston residents;
2. The sales tax revenues generated will exceed the City’s share of the loan
request within the first three years of the five year loan term.
3. The assistance is structured as a loan, therefore the funds will be repaid to the
Economic Development Fund for future redevelopment efforts;
4. The applicant proposes using a number of sources, including private equity, to
complete the project and diversify the risk;
5. The nature of the restaurant will have broad appeal and results in an adaptive
reuse of an underutilized building at a key gateway into Evanston.
If the Economic Development Committee supports this project, staff suggests the
following conditions:
1. The applicant shall get minimum of three bids for work, of which at least one shall
be an Evanston business. The owner shall make every effort to hire qualified
Evanston based firms for the build-out work and to make every effort to purchase
materials for the build-out through Evanston-based businesses;
2. Chicago’s Home of Chicken and Waffles includes an acknowledgement in press
releases that the opening of the restaurant was made possible, in part, through
financial assistance from the City of Evanston.
3. Chicago’s Home of Chicken and Waffles shall make best effort to hire 75% or 57
Evanston residents for their total expected 76 new jobs.
4. The construction funding schedule will include one construction draw advance to
initiate the project and up to three additional draws through completion of the
project. Each additional draw would only occur upon successful completion of the
work planned in the prior draw. The final payment shall be contingent upon the
owners seeking and being granted all final occupancy permits, licenses, and
owners opening the restaurant. The amount of the initial construction advance
and details of the terms and associated benchmarks for each subsequent
payment shall be negotiated by the City Manager and incorporated into the loan
agreement between the City and business owners.
5. In the event that Chicago’s Home of Chicken and Waffles defaults or ceases to
operate at 2424 Dempster, the City shall maintain the right to control the reuse of
Page 6 of 7
Page 17 of 55
the affixed improvements to extent allowable as second in position on the
mortgage.
6. Total reimbursement may be less than $200,000 if the final invoices or work
completed was less than original estimate for work.
Representatives from Chicago’s Own Chicken and Waffles will be present at the
Economic Development Committee meeting and will be prepared to answer any
questions and discuss this project in greater depth.
.
Attachments:
- Map of Property
- VFJ Enterprises III-Evanston Income Statement
- Financial Exhibits
- Project renderings / photographs
Page 7 of 7
Page 18 of 55
2424 Dempster / Proposed Chicken and Waffles Restaurant
DISCLAIMER: This map and data are provided as-in without warranties of any kind.
See www.cityofevanston.org/mapdisclaimers.html for more information
Page 19 of 55
Scale 1:959
Made with Evanston's GIS
Printed: Mar 14, 2012 11:24:19 AM
Page 20 of 55
VFJ Enterprises III - Evanston
Income Statement
For The Year Ending
December 31st, 2012, 2013, 2014
Revenue - Restaurant
Gross Sales - Restaurant
Cost of Sales - Restaurant
Total Revenue - Restaurant
Gross Profit Margin %
Revenue - Bar
Gross Sales -Bar
Cost of Sales - Bar
Total Revenue - Bar
Expenses:
Salary & Wages
Utilities - Phone
Utilities - Electric, Water, Gas
Utilities - Scavenger Services
Advertising
Entertainment
Cleaning Supplies
Uniforms
License & Fees
Insurance (Property & Casualty)
Vehicle Insurance
Vehicle Maintenance
Sales Tax
Liquor SalesTax
Professional Fees
Miscellaneous Expenses
Depreciation
Interest Expense
Total Expenses
Net Profit / (Loss)
Profit Margin
$
$
$
2012
2013
2014
Total
728,125 $ 3,145,500 $ 3,365,685 $ 7,239,310
(232,031) $ (1,017,687) $ (1,081,791) $ (2,331,510)
496,094 $ 2,127,813 $ 2,283,894 $ 4,907,800
68%
68%
68%
68%
$
$
$
2012
250,000 $
(80,000) $
170,000 $
68%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
286,156
4,500
15,300
3,300
30,000
6,000
1,050
2,700
7,800
4,500
600
1,500
63,554
15,000
9,000
10,500
3,000
4,435
468,896
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
197,198 $
20%
2013
1,075,000 $
(341,900) $
733,100 $
68%
2014
1,150,250 $
(369,988) $
780,262 $
68%
Total
2,475,250
(791,888)
1,683,362
68%
1,242,318
18,464
60,960
13,416
130,000
24,000
4,236
10,992
31,800
18,360
2,448
6,000
266,928
63,000
36,600
42,720
12,000
15,758
1,999,999
1,321,414
21,083
68,779
13,804
148,400
30,680
4,941
12,272
33,496
18,727
2,497
6,420
280,275
66,150
40,132
46,374
12,000
12,437
2,139,881
2,849,888
44,047
145,039
30,520
308,400
60,680
10,227
25,964
73,096
41,587
5,545
13,920
610,757
144,150
85,732
99,594
27,000
32,630
4,608,777
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
860,913 $
20%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
924,274 $
20%
1,982,385
20%
***The restaurant revenue is based upon a open date of October 1, 2012 and a Main Dinning area of
100 occupants, Private Room 50 occupants and Patio 20 occupants
Page 21 of 55
Exhibit A. Chicago's Home of Chicken & Waffles - Amortization Schedule
2424 Dempster Street
(20 yr amort)
Int. for Month
Payment
958.33 ‐
958.33 ‐
958.33 ‐
958.33 ‐
958.33 ‐
958.33 ‐
958.33 (1,404.17)
956.20 (1,404.17)
954.05 (1,404.17)
951.89 (1,404.17)
949.73 (1,404.17)
947.55 (1,404.17)
945.36 (1,404.17)
943.16 (1,404.17)
940.95 (1,404.17)
938.73 (1,404.17)
936.50 (1,404.17)
934.26 (1,404.17)
932.01 (1,404.17)
929.75 (1,404.17)
927.48 (1,404.17)
925.19 (1,404.17)
922.90 (1,404.17)
920.59 (1,404.17)
918.27 (1,404.17)
915.95 (1,404.17)
913.61 (1,404.17)
911.26 (1,404.17)
908.89 (1,404.17)
906.52 (1,404.17)
904.14 (1,404.17)
901.74 (1,404.17)
899.33 (1,404.17)
896.91 (1,404.17)
894.48 (1,404.17)
892.04 (1,404.17)
889.59 (1,404.17)
887.12 (1,404.17)
884.64 (1,404.17)
Page 22 of 55
End Balance
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
199,554.17
199,106.20
198,656.08
198,203.81
197,749.37
197,292.75
196,833.94
196,372.94
195,909.72
195,444.29
194,976.63
194,506.72
194,034.57
193,560.15
193,083.46
192,604.48
192,123.21
191,639.64
191,153.74
190,665.52
190,174.96
189,682.05
189,186.77
188,689.13
188,189.10
187,686.67
187,181.83
186,674.58
186,164.89
185,652.77
185,138.19
184,621.14
184,101.62
Interest Only 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
$ 200,000
5.75
240
($1,404.17)
Start Balance
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
199,554.17
199,106.20
198,656.08
198,203.81
197,749.37
197,292.75
196,833.94
196,372.94
195,909.72
195,444.29
194,976.63
194,506.72
194,034.57
193,560.15
193,083.46
192,604.48
192,123.21
191,639.64
191,153.74
190,665.52
190,174.96
189,682.05
189,186.77
188,689.13
188,189.10
187,686.67
187,181.83
186,674.58
186,164.89
185,652.77
185,138.19
184,621.14
Months 7through 60 Payments
Loan Amount
Interest Rate
# of Months
Monthly Payment
Payment #
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
184,101.62
183,579.60
183,055.09
182,528.06
181,998.51
181,466.41
180,931.77
180,394.57
179,854.80
179,312.43
178,767.47
178,219.90
177,669.70
177,116.87
176,561.39
176,003.24
175,442.43
174,878.92
174,312.71
173,743.80
173,172.15
172,597.77
882.15
879.65
877.14
874.61
872.08
869.53
866.96
864.39
861.80
859.21
856.59
853.97
851.33
848.68
846.02
843.35
840.66
837.96
835.25
832.52
829.78
827.03
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
(1,404.17)
Page 23 of 55
183,579.60
183,055.09
182,528.06
181,998.51
181,466.41
180,931.77
180,394.57
179,854.80
179,312.43
178,767.47
178,219.90
177,669.70
177,116.87
176,561.39
176,003.24
175,442.43
174,878.92
174,312.71
173,743.80
173,172.15
172,597.77
172,020.63 Balance Due
Exhibit B. Chicago's Home of Chicken & Waffles Tax Revenue Projections
Example Loan Repayment Period
6 mos June December 2012
2013
2014
$ 3,145,500
$ 3,365,685
6 mos Jan June - 2017
2016
Total
Staff Projection
$ 3,601,283 $ 3,853,373 $ 2,061,554 $ 16,755,520
$
$
$
2015
Restaurant
Gross Sales Restaurant
$
728,125
City of Evanston Sales Tax 2%
$
14,563
Bar
Gross Sales Bar
6% Tax
2% Admin Fee [1]
$
$
$
Total CoE Bar Sales Tax Revenues
$
14,700
$
63,210
$
67,635
$
72,369
$
77,435
$
41,428
$
336,777
Total CoE Sales Tax Revenues
$
29,263
$
126,120
$
134,948
$
144,395
$
154,502
$
82,659
$
671,887
Loan Interest Payments
$
5,750
$
11,357
$
11,032
$
10,689
$
10,325
$
5,020
$
54,173
Subtotal - Sales Tax & Int Pymts
$
35,013
$
137,477
$
145,981
$
155,084
$
164,828
$
87,678
$
726,060
525,603 $
1.364%
7,169 $
Estimate 2.5% increase annually
538,743 $ 552,212 $ 566,017
1.364%
1.364%
1.364%
7,348 $
7,532 $
3,860 $
36,316
153,150
162,432
Property Tax Revenues
Assessed value
Multiplier
Equalized Assessed Value
City's Property Tax Rate
Property Tax Revenue
Estimated Total Revenues to City
$
$
$
$
62,910
67,314
72,026
$
77,067
$
250,000 $ 1,075,000 $ 1,150,250 $ 1,230,768 $ 1,316,921 $
15,000 $
64,500 $
69,015 $
73,846 $
79,015 $
(300) $
(1,290) $
(1,380) $
(1,477) $
(1,580) $
151,599 (current)
3.3
500,277 $ 512,784 $
1.364%
1.364%
3,412 $
6,994 $
38,424
$
144,471
$
$
[1] The restaurant retains fee for administering the collection and submission of the tax
Page 24 of 55
$
172,360
$
41,231
$
704,553 $
42,273 $
(845) $
91,539
$
335,110
5,727,492
343,649
(6,873)
762,376
Exhibit C. Chicago's Home of Chicken & Waffles - Total Project Costs
Real Estate Acquisition
$ 282,500
Build Out Budget
Architect
Roof
Signs
Glass
booths/Tables
Dave Katz Restaurant Equipment
Dave Katz Exhaust
Plumbing
Electrical
HVAC
Framing w/materials & demo
Fire Sprinkling System
Fixtures
Permits
Landscaping
Brick work with material
Sound and Video Systems
Point of Sale System
Bathroom Partitions
Outdoor Café Furniture
Granite Countertops
Total
Total $ 14,500
$ 2,000
$ 30,000
$ 40,000
$ 42,000
$ 40,000
$ 20,000
$ 50,000
$ 40,500
$ 42,000
$ 40,000
$ 10,000
$ 20,000
$ 5,000
$ 12,000
$ 20,000
$ 8,000
$ 20,000
$ 5,000
$ 11,000
$ 10,000
$ 482,000
Total Project Costs
$ 764,500
Page 25 of 55
% of Total Buildout
3.0%
0.4%
6.2%
8.3%
8.7%
8.3%
4.1%
10.4%
8.4%
8.7%
8.3%
2.1%
4.1%
1.0%
2.5%
4.1%
1.7%
4.1%
1.0%
2.3%
2.1%
100.0%
Affixed to Property?
x
x
x
x
x
x
x
Exhibit D. Chicago's Home of Chicken & Waffles - Sources and Uses
Sources of Funds
City of Evanston ‐ Loan
First Bank and Trust
Private Equity
Express Working Capital ‐ Loan
Total Sources of Funds
Total $200,000
$202,500
$212,000
$150,000
$764,500
% of Total
26.2%
26.5%
27.7%
19.6%
100.0%
Uses of Funds
First Bank
Private Equity
$202,500
$80,000
$282,500
26.5%
10.5%
37.0%
Buildout
City of Evanston ED Fund Loan ‐ Express Working Capital
Private Equity ‐ Barnett Malone
Total
$200,000
$150,000
$132,000
$482,000
26.2%
19.6%
17.3%
63.0%
Total Uses of Funds
$764,500
100.0%
Page 26 of 55
Chicago’s Home of Chicken & Waffles
Business Plan
Prepare for the City of Evanston
February 28, 2012
Page 27 of 55
Chicago’s Home of Chicken & Waffles II
543 Madison St.
Oak Park, Il. 60302
708.524.3300
February 27, 2012
Re: 2424 W. Dempster
To the City of Evanston Economic Development Division,
We would like to request your assistance with the purchase and build-out of 2424 W. Dempster for a
restaurant project. The purchase price is $282,500 of which we will be applying a down payment of
$80,000. The balance of the purchase price will be $202,500. The build-out cost of the project will be
approximately $482,000 of which we are asking for your assistance of $200,000 towards the build-out
costs. The total amount requested would be $402,500 between the build-out and the purchase. An
amount of $150,000 of the additional $282,000 for the build-out will come from Express Working Capital
and $132,000 will come from my partner, Rosemary Barnett-Malone.
When the project was first entertained, we had a group of investors. Our plan was to open 5
restaurants throughout the Chicagoland area with 2424 W. Dempster being our lead restaurant project.
Unfortunately, things did not work out as planned with the investors. When we informed the bank from
which we were purchasing the property that things did not work out with our investors; the bank
requested that we pledge our $40,000 deposit as hard money that would not be returned to us, in
return for an extension in our closing date, changing it to February 1, 2012. We agreed to the terms
requested; making several attempts to obtain financing through banks. As you well know, we are living
in times where banks are not lending to many small businesses, therefore, the newly formed rules and
guidelines in bank lending in regard to small businesses have prevented us from being able to obtain
financing. If the city of Evanston agrees to help us purchase this property, we would like to do a lease
option to buy back the property in 5 years with first year terms as interest only, and the balance of the
loan amortized over 30 years, due in 5. We have put together a business plan for your review. If given
the opportunity to obtain the Evanston restaurant, we know with the experience of our first two
restaurant projects, that this will be our premier restaurant and the launching of something that will be
historical. Thank you for your consideration.
Sincerely,
Tonya Van Dyke-Johnson
President/CEO
Page 28 of 55
Table of Contents
1.0.
Executive Summary
Page
1.1 Business Mission and Vision
1.2 Business Description
1.3 Summary of Products
1.4 Summary of Market
1.5 Summary of Facilities and Operations
1.6 Summary of Capital Needed
1.7 Summary of Sales and Marketing
1.8 Summary of Personnel
1.9 Summary of Financial Projections
1
1
1
2
2
2
2
2
3
2.0
Our Keys To Success
3
3.0
Business Mission and Needs
3
3.1 Customer Eating Behavior
3.2 Target Market
3
4
4.0
Management Team & Organization Structure
6
5.0
Financial Plan - Evanston
7
5.1
5.2
5.3
5.4
5.5
Income Graph
Income Statement
Balance Sheet
Build-out Projection
Staffing Projections
7
8
9
10
11
Appendix
Evanston Exterior Renderings
Evanston Proposed Site Plan
Bronzeville Balance Sheet
Bronzeville Income Statement
Bronzeville Photos
Oak Park Balance Sheet
Oak Park Income Statement
Oak Park Photos
12
13
14
15
16
17
18
19
-0Page 29 of 55
1.0 Executive Summary
1.1 Business Mission and Vision
Chicago’s Home of Chicken & Waffles will strive to be the premier breakfast, lunch and dinner restaurant in
Evanston and its surrounding areas. We want our customers to enjoy the taste of savory chicken & waffles and
other comfort food dishes, while dining in a warm, friendly and soulful jazz environment. Our goal is for our
customers to encounter a totally new experience while dining with us. Customers will enjoy smooth jazz music in
an upscale atmosphere while savoring the best chicken and waffles in Evanston and its surrounding communities.
In today’s climate, we feel that customers need to have the opportunity to relax and be catered to in a calming
atmosphere, regardless of the hour; traditionally a concept that is enjoyed primarily in upscale Las Vegas Hotel
restaurants which serve breakfast, lunch and dinner in elegant settings. The main focus will be to serve quality
food at a value that is affordable for the residents of Evanston and its adjacent communities. All chicken will be
served fresh daily along with waffles and 27 other carefully selected delightful dishes. For our health conscious
consumers, we offer our famous buckwheat waffles, spectacular grilled chicken salad, grilled catfish, salmon and
sautéed vegetables.
1.2 Business Description
Chicago’s Home of Chicken & Waffles is an original, providing an IHOP and Denny’s concept of dining for
breakfast, lunch and dinner. Unlike Denny’s and IHOP, the customer may savor the succulent taste of soul food
in an upscale atmosphere designed for Evanston and its surrounding communities’ lifestyle. The amalgamation
of seasoned fried chicken with sweet maple syrup, or Yen and Yang, will create a craving in the customers’
palates that will keep them coming back and craving more. There is no place in the Midwest that brings this type
of upscale relaxing environment, seven days a week for breakfast, lunch and dinner, from opening to closing,
except Chicago’s Home of Chicken and Waffles.
Our goal is to ensure that our customers have an enjoyable experience, while dining at Chicago’s Home of
Chicken & Waffles. Our theme will be one of “excellence“, the same excellence that is displayed in Evanston’s
richly diverse community. We know our customers desire value for everything that they purchase, and we will not
accept anything below their standard in quality. Most importantly, we want to provide an extraordinarily unique
experience in dining. Customers in Evanston and surrounding communities will love the experience at Chicago’s
Home of Chicken & Waffles.
In today’s highly competitive environment, it is becoming increasingly difficult to distinguish one restaurant
concept from another, but what separates Chicago’s Home of Chicken & Waffles from the rest is our signature
combination of vanilla and cinnamon waffles, with our uniquely blended maple syrup, along with that great tasting
“from Mother’s Kitchen” fried chicken. Chicago’s Home of Chicken & Waffles will enjoy great success in Evanston,
similar to its tremendously successful ventures in Bronzeville and Oak Park. We believe we will experience
significant growth and profitability in Evanston for many years to come.
1.3 Summary of Products
We will strive to serve the best-fried chicken and catfish. Also, our “Soul Food Special” will feature fried chicken
and catfish or chicken with collard greens, sweet potatoes, macaroni and cheese, and cornbread. For dessert,
one can enjoy our waffle-a-la-mode, which is a waffle with ice cream topped with strawberry, apple cinnamon,
chocolate, pineapple, creamy caramel or pecan toppings. Peach cobbler and sweet potato pie will also be
highlights of our dessert menu. These dishes along with other tasty dishes will make Chicago’s Home of Chicken
Waffles one of Chicago’s favorite eateries, and will leave our customers with a lasting and satisfying experience
with a craving for more.
-1Page 30 of 55
1.4 Summary of Market
Our market will consist of all ethnic groups. Our primary customers will come from Evanston, surrounding
suburban communities like Skokie, Wilmette, Lincolnwood, Morton Grove, Winnetka, Glenview, Niles, Park Ridge,
Des Plaines and the North side of Chicago. All age groups will savor the moment to experience the outstanding
chicken & waffles at Chicago’s Home of Chicken & Waffles.
1.5 Summary of Facilities and Operations
Chicago’s Home of Chicken & waffles will be located at 2424 Dempster in Evanston, Illinois, in a 5000 square foot
building. The site has more than adequate parking and excellent landscaping potential. The site sits off of a busy
main street and is highly visible for all drivers. An estimated vehicle flow of over 22,000 will pass this location
daily, providing an immediate source of name and brand recognition.
Chicago’s Home of Chicken & Waffles’ building will be newly remodeled with a clean and contemporary setting.
The store will have extra lighting and will be visible from more than 300 yards. The building will be redesigned
with a richly appealing stone and stucco exterior with an equally artisan designed outdoor café that will overlook
nearby Harbert Park. Our customers will surely identify a spirit of excellence as they approach and enter the
restaurant. Restaurant hours will be from 6:00am to 9:00pm (Sun.-Thurs.) 6:00am to 12:00pm (Fri- Sat.)
1.6 Summary of Capital Needed
This plan is prepared to obtain financing for the purchase of the restaurant and build-out. We have provided a
preliminary exterior and interior sketch. The menus are designed and ready for print. Advertising is in line, and
equipment is on stand-by. My husband and his family owned restaurants over 33 years in Brooklyn N.Y. We are
strong believers in owning the property in which our businesses are located. We are purchasing the location in
Evanston for $282,000 with $80,000 down. The build-out is estimated at approximately $480,000.
1.7 Summary of Sales and Marketing
Radio, direct mailing, direct selling and sales discounts will be used to draw customers to the store. A growing
segment of Chicago’s Home of Chicken & Waffles is its thriving catering service business, which will generate
significant sales revenue. We also partnered with Groupon for both locations and were sold out within a few
hours of making the initial offer. Groupon will not only bring local traffic from Chicago and neighboring suburbs but
it also has a national presence for those out of town visitors who travel here for various Northwestern events.
Additionally, Yelp has been a fan favorite and a value-added benefit in marketing our restaurants. We plan to
further increase our presence by more aggressively utilizing social media like Facebook and Twitter to attract
customers to our locations. We know that Evanston is the right fit. We are confident that this venture will generate
huge profit margins in years to come.
1.8 Summary of Personnel
Owners- Tonya Van-Dyke & Rosemary Malone
Operations Manager - Darnell Johnson
Executive Chef - Carol Johnson
Oak Park Manager - Ed Chatman
Oak Park Assistant Manager - Tiffany Johnson
Bronzeville Manager - Harry Wilson
Bronzeville Assistant Manager - Selwyn Johnson
Purchasing Agent - Fred Thomas
We will hire 76 new employees, with 80% of the hires coming from the Evanston community. This will be a great
benefit to the residents of Evanston in this current economic climate.
-2Page 31 of 55
1.9 Summary of Financial Projections
Achievable Financial objective for the first five years of operation includes:




Increasing sales by 7% per year
Maintain a cost of goods of 25% by leveraging economies of scale
Maintain employee labor cost of 29% of revenue
Achieving First Year sales of $3,500,000 to $3,900,000, is more than enough to meet loan obligations.
We believe that these very important benchmarks can be achieved by creating an “unforgettable” dining
experience for our customers and having a strong strategy for success. These results will be accomplished by
having an experienced and motivated team of employees with proven track records of success.
2.0 Our Keys to Success
It is our pledge to provide a sustainable level of excellence in all facets of our business, as nothing will be
compromised. Our primary goal is to serve nothing but the highest quality food at unbelievably low prices in a
clean and relaxed environment. We must deliver this pledge 100% without exception.
Controlling costs at all times in all areas will be essential. We will negotiate with our vendors and suppliers to
provide us with the lowest prices. We aim to be the premier customer to our suppliers, distributors and
wholesalers. We will do this without ever compromising the quality and purity of foods we serve to our customers.
With this being our third location, our suppliers have already assured better pricing due to the increased volume in
purchasing.
Customer Service is paramount. Our customers will be treated with ease; they will experience a warm and
inviting atmosphere with quick and efficient service. For those customers that want to lounge, we will not hurry
them out of the restaurant. These goals will be achieved by having a well-trained and motivated staff that will be
trained to be the most friendly, effective and efficient staff in the Northern Suburbs.
3.0 Business Mission and Needs
Many consumers in Evanston and the surrounding communities have become accustomed to eating the same
entrees, at the same fast food restaurants, and dining at the same places they’ve dined at for years without
experiencing the joy of eating breakfast, lunch and dinner in this style of a warm, upscale and jazzy environment.
There is truly a need for a new type of restaurant, one that is exciting and affordable with savory foods. Chicago’s
Home of Chicken & Waffles is just this type of restaurant, offering the customer a brand new taste in food and
atmosphere. This type of comfort food restaurant has never hit the Northern Suburbs.
3.1 Consumers Eating Behavior
Men, women and children alike of all ethnic groups are eating out these days. When a restaurant is affordable
and offers the ambiance that Chicago’s Home and Chicken & Waffles offers, people from all walks of life will
come and experience the great food in the restaurant. Evanston is known for its culturally rich diversity and its
world renown Universities. As the word spreads in the community of the wonderful experience of eating at
Chicago’s Home of Chicken & Waffles, we will experience rapid growth and success.
-3Page 32 of 55
3.2 Target Market Analysis
Exhibit 1
Primary Market
Evanston
Skokie
Wilmette
Lincolnwood
Morton grove
Winnetka
Glenview
Niles
Park Ridge
Des Plaines
Total
Population
74,486
64,874
27,087
12,590
23,370
12,187
44,692
29,803
37,480
58,364
384,933
Per Capita
Income
$
$
$
$
$
$
$
$
$
$
$
Median Family Average
Income
Family
Size
38,116
32,256
67,047
38,123
31,389
104,440
52,596
26,481
41,261
29,251
460,960
$
$
$
$
$
$
$
$
$
$
$
104,117
80,499
152,429
96,692
82,456
250,000
125,118
61,222
99,404
74,720
1,126,657
Estimate
Distance
From Store
3.05
3.26
3.23
3.40
3.20
3.39
3.15
3.09
3.16
3.19
.09 Miles
1.8 Miles
3.3 Miles
3.6 Miles
3.8 Miles
5.8 Miles
6.1 Miles
6.2 Miles
8.8 Miles
9.5 Miles
Chicago’s Home and Chicken & Waffles in Evanston has a target market which consists primarily of 10
communities (Exhibit 1), with a total population of 384,933. Per capita income, which measures the spending
power of each person in the target market, is $46,096. This is equivalent to an estimated 17 to 17.4 billion in
spending power of within these communities. With Chicago’s Home and Chicken & Waffles carving a niche
market of 1% it would lead to revenues of 17 million. Most of our customers will come from Evanston,
neighboring suburban communities and the North Side of Chicago. These communities have high population
densities and are close in proximity. We believe that we have a win-win situation for sustaining our customer
base, and a significant driver of increased revenue and profitability. We project earnings to be 4.3 million in our
second year.
Exhibit 2
Population Percentages by Race
Primary Market
Population
% Black
Evanston
Skokie
Wilmette
Lincolnwood
Morton grove
Winnetka
Glenview
Niles
Park Ridge
Des Plaines
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
18%
7%
1%
1%
1%
0%
1%
1%
0%
2%
% White %Hispanics
61%
55%
83%
63%
62%
93%
79%
72%
90%
68%
9%
9%
3%
7%
6%
2%
6%
9%
5%
17%
%Asian
%Other
9%
25%
11%
27%
28%
3%
12%
17%
4%
11%
4%
3%
2%
3%
2%
1%
2%
2%
1%
2%
-4Page 33 of 55
Exhibit 3
Population Breakdown by Race
Primary Market
Population
Evanston
74,486
Skokie
64,784
Wilmette
27,087
Lincolnwood
12,590
Morton grove
23,270
Winnetka
12,187
Glenview
44,692
Niles
29,803
Park Ridge
37,480
Des Plaines
58,364
Black
13,139
4,566
208
129
279
31
431
388
168
936
White
45,551
35,955
22,471
7,938
14,426
11,334
35,434
21,332
33,744
39,689
Hispanics
6,739
5,728
902
859
1,504
271
2,584
2,582
1,774
10,053
Asian
6,355
16,437
2,909
3,338
6,498
400
5,535
4,950
1,373
6,613
Other
2,702
2,098
597
326
563
151
708
551
421
1,073
The overwhelming proven success of Roscoe’s House of Chicken N Waffles in Southern California’s college
district, which includes UCLA and USC, assures us that we will do very well considering our close proximity to
Northwestern University, Loyola University and the surrounding communities looking for that southern comfort
food while relaxing in an upscale jazz infused atmosphere. In addition, our Chicago and Oak Park locations have
great name recognition and branding, hold a dominate market share for this genre and have been highly regarded
by the food media, communities and markets they serve. We believe we have an unbeatable combination. Since
the release of the movie “Rush Hour”, with Jackie Chan and Chris Tucker, this movie has made chicken & waffles
a winning combination and favorite for Asian Americans. This has been proven based on the frequency of Asians
that have dined at the famed Roscoe’s in Los Angeles, Ca. Also Larry King went to Roscoe’s with the famous
rapper Snoop Dog, and featured it on CNN. Also, while appearing on the Snoop Dog reality show, David
Beckham, the most famous soccer player in the world visited Roscoe’s Chicken N Waffles in Los Angeles, Ca and
had a wonderful experience. Recently, President Obama paid a visit to Roscoe’s L.A. as well. Chicago’s Home of
Chicken & Waffles also has a star studded list of celebraties that included Chicago’s Mayor Rahm Emanuel,
Congressman Danny Davis and Bobby Rush. Danny Glover, Celtics basketball star Rajon Rondo, TV and radio
personality Doug Banks, Keshia Coles, Eric Benet and Musiq Soulchild to name a few.
From ages 2 to 92, all people enjoy the wonderful taste of our chicken & waffles. Chicago’s Home of Chicken &
Waffles will be more than just a restaurant, it will be a place to come and relax, and take in the smooth sounds of
jazz, while sipping on sweet tea or your favorite cocktail, and eating the succulent maple syrup and waffles and
tasty fried chicken. We believe we have an unbeatable combination and our goal is to be the premier location
that people will come to enjoy.
-5Page 34 of 55
4.0 Management Team & Organizational Chart
Tonya Van-Dyke
Co-Owner
President
Rosemary Malone
Co-Owner
Vice-President
Darnell Johnson
Operations Manager
Carol Johnson
Executive Chef
Fred Thomas
Purchasing Agent
Ed Chatman
Oak Park Manager
Harry Wilson
Bronzeville Manager
Tiffany Johnson
Oak Park Assistant
Manager
Selwyn Johnson
Bronzeville Assistant
Manager
-6Page 35 of 55
5.0 Financial Plan - Evanston
5.1 Income Graph
-7Page 36 of 55
5.2 Income Statement
Income Statement
For The Year Ending
December 31st, 2012, 2013, 2014
Revenue - Restaurant
Gross Sales - Restaurant
Cost of Sales - Restaurant
Total Revenue - Restaurant
$
$
$
2012
728,125 $
(182,031) $
546,094 $
75%
2013
3,145,500 $
(742,687) $
2,402,813 $
76%
2014
3,365,685 $
(757,541) $
2,608,144 $
77%
Total
7,239,310
(1,682,260)
5,557,050
77%
$
$
$
2012
250,000 $
(55,000) $
195,000 $
78%
2013
1,075,000 $
(224,400) $
850,600 $
79%
2014
1,150,250 $
(228,888) $
921,362 $
80%
Total
2,475,250
(508,288)
1,966,962
79%
Expenses:
Salary & Wages
Utilities - Phone
Rent
Entertainment
Cleaning Supplies
Uniforms
License & Fees
Vehicle Insurance
Vehicle Maintenance
Security
Sales Tax
Liquor SalesTax
Professional Fees
Depreciation
Interest Expense
Total Expenses
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
283,656
3,300
12,300
2,700
450
2,400
7,500
4,500
600
63,554
15,000
7,500
9,000
3,000
4,435
419,896
1,157,318
13,464
48,960
11,016
1,836
9,792
30,600
18,360
2,448
266,928
63,000
30,600
36,720
12,000
15,758
1,718,799
1,180,464
13,733
49,939
11,236
1,873
9,988
31,212
18,727
2,497
280,275
66,150
31,212
37,454
12,000
12,437
1,759,197
2,621,438
30,497
111,199
24,952
4,159
22,180
69,312
41,587
5,545
610,757
144,150
69,312
83,174
27,000
32,630
3,897,893
Net Profit / (Loss)
$ 321,198
Revenue - Bar
Gross Sales -Bar
Cost of Sales - Bar
Total Revenue - Bar
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 1,534,613
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 1,770,308
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 3,626,119
***The restaurant revenue is based upon a open date of October 1, 2012 and a Main
Dinning area of 100 occupants, Private Room 50 occupants and Patio 20 occupants
-8Page 37 of 55
Based on Sales relative to Total Expenses, Chicago’s Home of Chicken & Waffles will experience significant
growth in the first three years of operation while maintaining cost. Cost is expected to increase marginally by
about 3%, but leveling off as this restaurant reaches economies of scales. Chicago’s Home of Chicken & Waffles
objectives for the first three years of operation include:





Increasing sales by 7.5% per year for the first 3 years of operations
Keeping food costs under 35% of the revenue
Keeping employee labor costs less than 1/3 of the revenue
Averaging sales between $3,400,000 to $3,900,000 in the first year
Maintaining tight control on costs and operations by hiring a managing partner
5.2 Balance Sheet
Balance Sheet
For The Year Ending
December 31st, 2012, 2013, 2014
Assets
2012
2013
Cash
$ 361,234
$ 1,854,006
Inventory
$
$
Building
$ 100,000
$
100,000
$
100,000
Fixed Assets (Buildout)
$ 200,000
$
200,000
$
200,000
Vehicles
$
$
(Accumulated Depreciation)
$
Total Assets
-
-
(3,000) $
2014
$ 3,579,153
-
-
$
(15,000) $
(27,000)
$ 658,234
$ 2,139,006
$ 3,852,153
Bank Loan
$ 287,036
$
$
Accounts Payable
$
$
Liabilities
Total Liabilities
-
233,195
233,195
$
$
176,034
-
$ 287,036
$
176,034
Withdrawal
$
$
Owners Equity
$ 50,000
$
50,000
Retained Earnings
$
$
321,198
$ 1,855,811
Retained Earnings-Current
$ 321,198
$ 1,534,613
$ 1,770,308
Total Equity
$ 371,198
$ 1,905,811
$ 3,676,119
Total Liabilities & Equity
$ 658,234
$ 2,139,006
$ 3,852,153
Equity
-
-
$
$
50,000
Based on the Financial Position and Results of Operations, it is clear that Chicago’s Home of Chicken & Waffles
has great potential for a return on investment. It will be in a strong position to pay off the loan, including all
interest accrued as well as the personal loan by the co-owner. Moreover, it is liquid, and will easily be positioned
to expand far beyond three stores. The future for Chicago’s Home of Chicken & Waffles is very bright!
-9Page 38 of 55
5.4 Build-Out Projections
Description
Amount
Architect
$
14,500
General contractor
Roof
$
2,000
Signs
$
30,000
Glass
$
40,000
Booths/tables
$
42,000
Dave Katz restaurant equipment
$
40,000
Dave Katz exhaust
$
20,000
Plumbing
$
50,000
Electrical
$
40,500
Air Conditioning/heating
$
42,000
Framing w/materials and demo
$
40,000
Fire sprinkling system
$
10,000
Fixtures
$
20,000
Permits
$
5,000
Landscaping
$
12,000
Brick work w/materials
$
20,000
Sound system/ flat screens
$
8,000
POS system
$
20,000
Bathroom partitions
$
5,000
Outdoor café furniture
$
11,000
Granite countertops
$
10,000
Grand Total
$ 482,000
- 10 Page 39 of 55
5.5 Staffing Projections
Staffing Projections
Number
1
1
1
7
6
7
4
7
1
1
1
13
18
8
Position
Salary
General manager salary
$ 45,000
Assistant manager/Bar$ manager
35,000
Part time assistant manager
$ 18,000
Cashiers
Hourly $8.25
Expeditors
Hourly $5.25 (plus tips)
Bussers
Hosts/hostesses
Hourly $8.25
Dishwashers
Hourly $8.25
Executive corporate kitchen
$ 250
manager
Executive lead chef $ 650
Sous chef
$ 500
Chefs
Hourly $8.50
Servers
Bartenders
- 11 Page 40 of 55
Appendix
Evanston Exterior Renderings
- 12 Page 41 of 55
Evanston Proposed Site Plan
- 13 Page 42 of 55
Bronzeville Financials
VFJ Enterprises - Bronzeville
Balance Sheet
For The Period Ending
December 31, 2011
Assets
2011
Cash
$ 162,566
Inventory
$
Building & Fixed Assets
$ 275,600
Vehicles
$
$ (30,755)
Total Assets
2,000
4,400
$ 413,811
Liabilities
Loan Payable
$
-
Accounts Payable
$
-
$
-
Withdrawal
$
-
$ 353,452
Retained Earnings
$ 48,870
Total Liabilities
Equity
Total Equity
$ 402,323
$ 402,323
- 14 Page 43 of 55
VFJ Enterprises - Bronzeville
Income Statement
For The Year Ending
December 31, 2011
Revenue
2011
Gross Sales
$
Cost of Sales
$
Total Revenue
$
2,335,281
(658,767)
1,676,514
72%
Expenses:
Salary & Wages
$
811,904
Utilities - Phone
$
14,503
$
22,915
$
10,272
Rent
$
33,984
Entertainment
$
24,874
Cleaning Supplies
$
5,633
Uniforms
$
7,904
License & Fees
$
28,164
$
5,524
Vehicle Insurance
$
2,846
Vehicle Maintenance
$
1,401
Security
$
-
Sales Tax
$
203,832
Restaurant Tax
$
5,320
Professional Fees
$
74,836
$
58,883
Depreciation
$
10,266
Interest Expense
$
Total Expenses
$
1,323,062
Net Profit / (Loss)
$
353,452
-
- 15 Page 44 of 55
Bronzeville Photos
- 16 Page 45 of 55
Oak Park Financials
VFJ Enterprises II - Oak Park
Balance Sheet
For The Year Ending
December 31, 2011
Assets
2011
Cash
$ 246,916
Inventory
$
Building
$ 100,000
Fixed Assets (Buildout)
$ 325,000
Vehicles
$
-
$
(15,455)
Total Assets
-
$ 656,461
Liabilities
Private Bank
$ 284,554
Pan American
$
Ray Levell (Interest only)
$ 100,000
Accounts Payable
$
Total Liabilities
34,875
-
$ 419,429
Equity
Withdrawal
$
-
Owners Equity
$
50,000
Retained Earnings
$
-
$ 187,033
Total Equity
$ 237,033
$ 656,461
- 17 Page 46 of 55
VFJ Enterprises II - Oak Park
Income Statement
For The Year Ending
December 31, 2011
Revenue
2011
Gross Sales
$
Cost of Sales
$
Total Revenue
$
1,719,752
(504,587)
1,215,165
71%
Expenses:
Salary & Wages
$
707,329
Utilities - Phone
$
6,454
$
10,190
$
4,873
Rent
$
805
Entertainment
$
22,314
Cleaning Supplies
$
3,657
Uniforms
$
16,046
License & Fees
$
22,169
$
9,502
Vehicle Insurance
$
-
Vehicle Maintenance
$
-
Security
$
Sales Tax
$
Restaurant Tax
$
-
Professional Fees
$
28,455
$
37,060
Depreciation
$
15,455
Interest Expense
$
19,650
Total Expenses
$
1,028,133
Net Profit / (Loss)
$
187,033
Taxes 25%
$
Net Profit / (Loss) After Taxes
$
124,174
187,033
*** The income is based on a seating capacity of 94
- 18 Page 47 of 55
Oak Park Photos
- 19 Page 48 of 55
COMMUNICATIONS
Page 49 of 55
MONTHLY RETT REPORT FOR MARCH 2012
DATE:
TO:
FROM:
APRIL 6, 2012
Mayor and Aldermen
Rodney Greene, City Clerk
SUBJECT: RETT Report--March 2012
Budget 2012
FY 2010-11
Month Amount Transactions
March
April
May
June
July
Aug
Sept
Oct
Nov
Dec
76,152
121,018
221,970
160,925
538,824
209,942
136,759
273,326
100,720
130,480
52
70
82
86
116
96
71
55
52
57
$1,725,000
FY 2012
Month
Amount Transactions
January
February
March
April
May
June
July
August
September
October
November
December
113,540
113,355
125,990
Cumulative
57
37
65
113,540
226,895
352,885
March 2012 revenues were reduced to reflect this expenditure: $300 RETT Refund - did not close
Monthly average needed to meet budget $144,000
FY 2012 Monthly Average
$117,628
50 exemptions @ $100 ea = $5,000; CUMULATIVE $15,500
There were three ( 3 ) $ million sales in March 2012.
03/01/12 -- 1570 Elmwood #501 $1,130,000; Tax $5,650; Seller: Winthrop Club @ Bletchley Pk; Buyer: KWO
03/02/12 -- 614 Davis $1,050,000; Tax $5,250; Seller: Giordano Ltd. Partnership; Buyer: Samonica Real Estate LLC
03/14/12 -- 1622 Forest Place $2,800,000; Tax $14,000; Seller: Forest Place LLC; Buyer: Patriot Park, LLC
NSP2 sales = $105,500; CUMULATIVE $5,645,235
Page 50 of 55
Community and Economic Development Department 3-30-12 Update
Page 1 of 5
Economic Development – APRIL UPCOMING MEETINGS & EVENTS
Howard Street Business
Association
Evanston West Village
Business Assoc. (EWVBA)
The next Howard Street Business Association will be on April 12, 2012.
The EWVBA is planning to meet in April, as they are currently planning their “Makin’ It Happen” Event.
WestEnd Business
Association
The next meeting is scheduled for April 24, 2012 at Inclusion Solutions
Joint Economic
Development Meeting
The Joint Economic Development Meeting is a meeting of representatives from Evanston’s business and merchant groups. The
next meeting is scheduled for April 18, 2012 at 8:00am. This meeting will be hosted by the Main Street Merchants, location to be
determined.
Economic Development
Committee
The date of the next EDC meeting is April 25, 2012 at 7:30pm in room 2200. The EDC will also meet on Monday, April 30th, at
6:30pm to discuss FY12 Budget/Priorities.
Economic Development – MARCH MEETINGS/ON-GOING ACTIVITIES
The EDC met on March 28, 2012. The agenda included:
Staff Reports: A. An update on recent economic development activities; B. Announcements and updates from Economic
Development Committee members: and C. Consideration of having a Special Meeting on Budget and Priorities for the Balance of
2012. The EDC decided to meet on Monday, April 30th, at 6:30pm to discuss FY12 Budget/Priorities. In addition, the EDC decided
on May 18th @ 8:30am for an Economic Development Summit
Economic Development
Old Business: A. Downtown Evanston provided an update; and B. Consideration of Request from Tom Fischl (Ofischl Sports).
Committee
New Business: A. Consideration of Class “C” Cook County Classification for 1453-1459 Elmwood – EDC voted 7-4 in favor of
supporting the request form the property owner. B. Consideration of Request from Evanston Community Development Corporation
– EDC deferred action to allow the representatives from ECDC to work with staff to provide the Committee more information for the
funding request and to allow ECDC president to discuss alternative options with his Board. This tentatively scheduled to consider at
the April 25, 2012 meeting.
New Business Openings,
Expansion, and/or
Relocations
Several new businesses have opened or relocated in Evanston recently. New businesses include: Studio S.L.K (1934 Maple
Avenue) and uBreakiFix (1607 Chicago Avenue). Yes, We Will , Marketing LLC recently reopened in a new space at 1705
Simpson Street #1W. This business, which was previously located at 960 Grove Street, refers customers to home health care
agencies in the area to fit their specific medical needs. Carmen’s Pizza also relocated, moving from 1014 Church Street to 1241
Chicago Avenue. .
Marketing
The Economic Development Division recently launched our new City of Evanston Economic Development Facebook Page.
http://www.facebook.com/EvanstonEconomicDevelopment Staff is working on additional improvements to the Economic
Development website and additional social media and traditional outreach marketing.
Page 51 of 55
Page 2 of 5
Evanston-based Business
Directory
Staff continues to gather contact information for local Evanston-based businesses. An initial Local Business Directory has been
posted on the Economic Development website with contact information for over 1,000 Evanston-based businesses:
http://www.cityofevanston.org/business/economic-development/. Staff is working to regularly update the list as information
changes and new information becomes available.
Larger scale Development
Sites and “Prospects”
(General – see also some
specific examples below)
Staff continues to work with property owners and potential developers of large vacant properties in Evanston to identify potential
tenants and uses for these properties and provide assistance for approvals and other City processes. In addition, Staff has been
actively working with 6 potential “prospects” (i.e. higher profile businesses and/or targeted industries) who are considering locating
with the City.
Technology/
Entrepreneurship/Innovation
Events
coLab has organized TEDxEvanston event at Music Institute of Chicago on April 18, 2012 6PM to 10PM. The City is one of
several sponsors of the event. For more information, check out their website at: http://www.tedx-evanston.com/
Small Business Assistance
The City of Evanston and SCORE Representative are beginning to plan the next Small Business seminar, tentatively planned for
late April/early May. In addition, Staff have been contacted by Director of University Services, at NU, in order to work on a joint
diversity services forum, with a focus on local businesses. This will tentatively be held in early summer 2012.
Economic Development Division staff continues to work with several new potential businesses ranging from cafes and restaurants
to retailers, small office users and entertainment uses. To date, staff is working with over 35 leads for potential new businesses.
Façade Improvement
Program
Great Merchant Grant
Program
The City Council approved the recommended changes to the Façade Improvement Program at their March 19th, 2012 meeting.
Following its passage, Economic Development Division staff began circulating updated façade improvement program materials to
Evanston businesses. Materials on the Façade Improvement Program webpage were also updated.
The changes to the program will streamline the application process and potentially increase the number of businesses that are
interested in application to the program.
The City of Evanston received eight submissions to the Great Merchant Grant Program. These submissions were reviewed by the
Economic Development Committee (EDC) at their 12/1/11 meeting. Of the eight submissions, six were recommended for approval
to City Council at the January 9, 2012 meeting, one was reviewed at the January 25, 2012 EDC meeting, and the last one is
expected to be reviewed at the April EDC meeting. In the second quarter of 2012, Staff will bring proposed revisions to the
program to accommodate suggested changes to guidelines of the program.
Page 52 of 55
Page 3 of 5
ECONOMIC DEVELOPMENT - KEY POTENTIAL DEVELOPMENT SITE ACTIVITY REPORT
Site
location
Overview of Development Opportunities
Proposed
Site Area
Bldg.
(Approx)
Area
Next Steps
1817
Church
St.
City Council approved a $200,000 construction loan funded from the
West Evanston TIF to Evanston North Shore Contractors Cooperative
to redevelop 1817 Church Street as a contractor cooperative. In
addition, City council approved ordinances to negotiate and execute
contract for sale of the city-owned property to the ENSCC. In order to
sell the property, the City is required to buy out HUD’s investment
which is $220,000 based on recent appraisal / current market value.
The $220,000 can then be used for other CDBG projects in the area.
1,000 s.f.
addition is
proposed
to second 5,764
floor of
existing
structure
The TIF Loan and Sale Agreement have been signed
by both parties. Staff aiming for closing week of April
th
9 once title work is finalized.
City-owned properties demolished late 2011.
N/A - no
defined
plan yet
for
redevelo
pment
5,530
The buildings were demolished late 2011, the
contractor recently completed their list of outstanding
“punch list” Items. The final invoice has been
received; Staff will close out this project on that
invoice is processed.
17081710
Darrow
Evanston
Plaza
WHI Real Estate Partners LLC and Bonnie Investment Group have
formed a partnership to revitalize the center. The deal closed
December 20th.
N/A - no
defined
project
yet
212,373
Staff is working closely with the new property owner
to encourage quality tenants, and to discuss potential
partnerships in improving the physical appearance of
the property. TIF Designation process initiated by
City Council March 23rd. Staff will concurrently
negotiate terms of the RDA that will accompany the
designation.
Asbury/
Oakton
Staff has on-going conversations with property owner regarding
potential business prospects that might be well-suited for the site.
Property owner is currently not interested in selling the property.
14,000
19,000
Staff continues to have conversations with property
owner about potential business prospects.
Chicago/
Main
Staff has worked with developer to create a mixed-use office/retail
development. Developer gave presentation at 5/25/11 Economic
Development Committee (EDC) meeting to share concept and seek
assistance in predevelopment activities. EDC recommended approval
of initial $20,000 for marketing assistance and to allow Developer to
return to request an additional $20,000, in the future, for related predevelopment work. The Developers came before the Economic
Development Committee on 10/26/11 to discuss progress to date, and
to request the second $20,000 for marketing assistance.
90,000
30,424
Staff continues to work with the developer to identify
potential tenants that could locate in this building.
Page 53 of 55
Page 4 of 5
Proposed Site Area
Bldg.
(Approx)
Area
Next Steps
Staff and Ward Alderman have had conversations with the property
owner about future use of the site
n/a
11,000
Staff will continue to work with the property owner to
determine opportunities for potential redevelopment
partnership. Environmental consultant to provide an
environmental remediation estimate on April 3, 2012.
19111917
Church
Street
Staff and Ward Alderman have had conversations with the property
owner about the idea of ‘partnering’ with the city on the possible
redevelopment of the site. Staff has made several visits to the site
with building inspectors and a structural engineer. It has been
determined that the roof, electrical and plumbing systems need to be
replaced. While the structure is still being evaluated, it appears to be
in relatively good shape. Staff will continue to solicit smaller
businesses and retailers.
N/A - no
defined
plan yet
for
redevelo
pment
15,825
Staff will work with the property owner to determine
opportunities for potential redevelopment
partnership.
1901
Dempster
(former
KFC)
Yum! Brands, the corporate owner of the KFC brand has enlisted a
local broker to price and list the property, scheduled for Mid October.
The property will have a 20 year deed restriction. Uses restricted
include any restaurant that is deemed competitive to other Yum
holdings including pizza, Mexican, chicken seafood, and hamburgers,
although the latter two are negotiable as Yum is in the process of
selling its A&W and Long John Silver brands.
TBD
20,225
Staff continues to work with the local broker and
identifying national brands restaurants suitable for
the space. Yum! is asking $750,000 for the property.
Broker indicated strong interest from a food user,
announcement timeline not finalized.
623-627
Howard
The City of Evanston purchased this property in mid-October. The
City is currently assessing the current condition of the building and
making necessary repairs to the property.
Na
10,000
Staff is working on attracting active businesses to
this site. A high-quality food service/sit-down
restaurant is the most desired use at this location.
629-631
Howard
Street
The City is working with the owners/operators of wine bar/cocktail
lounge Ward Eight. This will be a small bar with food to be located on
the ground floor of this property.
3,330
The Ward Eight owners/operators have executed
leases for the ground floor commercial space. They
are beginning work to complete build-out of the
space. They anticipate a July 2012 opening.
727-729
Howard
Street
City-owned properties located on Howard Street. Staff is currently
working with a theatre company to try to relocate to this building on
Howard Street.
4,000
City Council authorized the City Manager to enter
into a Letter of Understanding with City Lit theatre, to
relocate theatre operations to Evanston. This letter
will give the City and the theatre 90 days to create a
plan for relocation of City Lit to Evanston.
Site
location
18011805
Church
4,000
Page 54 of 55
Page 5 of 5
Site
location
Proposed Site Area
Bldg.
(Approx)
Area
Next Steps
2424
Oakton
Street
Gordon Foods is moving forward on design for their grocery store. A
groundbreaking for this development was held on November 21, 2011.
Work has started at this site.
16,000
Staff will continue to assist GFS in completing this
development process. GFS expects this store to be
open in summer of 2012.
Bright
Horizons
A for-profit day care/early education center, who is looking to open a
2nd facility in Evanston (they currently run one at Evanston Hospital).
The proposed facility at 1629 Orrington is planned to accommodate
approximately 300 children and would create 50+/- new jobs.
Designed to include portion of 1st floor, all of 2nd floor. 1st floor store
frontage along Orrington is being retained by property owner for future
lease to possible retail uses.
Bright Horizons has filed their permits, and should be
expected to begin work shortly.
Downtown Evanston is taking the lead as primary contact with the
representatives from Arthur Hill regarding refilling this space; Staff is
assisting Downtown Evanston in looking for prospects
21,900
Staff has been contact with the representative from
Arthur Hill, providing assistance in their recruitment
of new tenants to take over the space. Staff assisted
in their efforts to expedite a demo permit, in order for
them to try to secure a prospect for the second floor
space. Although Arthur Hill has a prospective tenant,
the tenant has asked that it be kept confidential until
all aspects of the deal are finalized and they are
ready to make their announcement.
13,000
Staff is working with the Third Ward Alderman to
determine the site plan for this project. Community
meetings will be scheduled in early April to solicit
input from the community on site plan and building
aesthetics.
Former
"Borders"
siteMaple
1211
Chicago
Avenue
Trader Joe’s has announced that will locate in a building being
developed by Terraco at 1211 Chicago Avenue.
Page 55 of 55
TBD

OC c J mc D a Order of A Committee committees

Transcription

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