RESTAURANT GRANT PROGRAM

Transcription

1 RESTAURANT GRANT PROGRAM INTRODUCTION ELIGIBILITY PROCESS APPLICATION Introduction The goal of the Restaurant Grant Program is to assist and encourage high quality, full service restaurants to locate and expand within the Village of Lisle. The Village seeks experienced restaurant operators to expand its distinctive dining options available to both residents and visitors. The program is funded by the Village of Lisle; allocation of funds requires approval from the Village Board. Restaurant Grant Program: The program provides reimbursement of matching funds to qualifying applicants. The applicant must contribute a minimum of 200% (2:1) of awarded funds (e.g. $20,000 grant requires the applicant to spend a minimum of $40,000) on eligible improvements with a potential maximum award of $40,000 per project. Applications will be accepted until funds are exhausted. Incomplete applications will not be considered submitted until the time in which all required materials have been submitted. Submittal of an application does not guarantee a grant award. Disclaimer: Participation in this program is at the sole discretion of the Village of Lisle and is not considered a right. The Village reserves the right to reject any and all applications. Any changes to the project after the Grant Agreement has been executed must be approved by the Village to be considered eligible for reimbursement. No construction work can begin until the applicant signs a contract for funds and obtains the required Village approvals including but not limited to Zoning and Building Permit approvals.

2 Eligible Projects and Improvements Qualifying Restaurants Location: Restaurants must be located within the Village of Lisle s corporate limits. Full Service Restaurants: High-quality, full service restaurants which derive 75% of gross income from on-site food and beverage sales from serving lunch and dinner. Businesses offering only breakfast and lunch will be considered on a case by case basis. Establishments such as wine or beer tasting rooms which offer food and entertainment (i.e. comedy clubs, cooking classes, etc.) may be eligible for funds. Bars or taverns with no food service are not eligible for funds. Fast food/carryout/franchises Restaurants: Fast food and carryout restaurants are not eligible for funds under the program. Franchises will be considered on a case by case basis. Good Standing: The property must be current on all mortgage/lease payments, taxes, utility bills, etc. Additionally, the property may not be the subject of any outstanding Village of Lisle ordinance violations. Qualifying Operators Applicants shall have a minimum of three years experience owning, managing or as a chef at a successful restaurant. Start-up operations are not eligible for funds. Eligible Improvements Purchase of property Demolition of an existing structure and construction of a new full service restaurant Conversion of an existing space to a full service restaurant Significant expansion and/or renovation of an existing full service restaurant Replacement of or installation of new mechanical systems Building Code and/or life safety improvements (i.e. restrooms, sprinkler systems, plumbing, electrical, etc.) Interior upgrades including but not limited to flooring, walls, ceilings, light fixtures, sprinkler systems and/or mechanical systems. Building façade improvements (i.e. new facade, tuck-pointing, windows, doors, awnings etc.) Awnings and Canopies Channel letter wall signs or monument signage Ineligible Improvements and Expenses Non-permanent improvements including but not limited to kitchen equipment (i.e. stoves, grills, dishwashers, exhaust hoods, etc.), furniture (i.e. tables, chairs, etc.) and dining equipment (i.e. gla ssware, plates, utensils, etc.) Soft costs (non-labor or material costs) including but not limited to architectural or engineering design fees, legal fees, permit and/or licensing fees Advertising and/or marketing costs Operating costs including but not limited to rent payments, payroll and the purchase of food and liquor Exterminator Fees Landscape Improvements Environmental Remediation Restaurant Grant Program, Page 2 of 8

3 Approval Process for Successful Grant Applications 1. Complete and Submit Application Completed applications must be submitted to the Village of Lisle in order to be eligible for the selection process. Incomplete applications will not be considered submitted until the time in which all materials have been submitted. Submittal of an application does not guarantee a grant award. 2. Grant Agreement and Approval by the Village Once a completed application has been received, the applicant will be required to enter into a Restaurant Grant Agreement with the Village (the agreement will be provided by Village staff). The agreement must be signed and submitted to the Village prior to consideration by the Village Board. The Village Board meets on the 1 st and 3 rd Mondays of each month at 7 pm at Village Hall. 3. Award Package Applications approved by the Village Board will be executed by the Village. Following Village Board approval staff will provide the applicant with a grant award package. The award package will detail additional processes and requirements prior to beginning/completing work, receiving reimbursement of funds and required annual follow-up reports. 4. Building Permit All work must comply with the Village of Lisle s applicable codes (i.e. building and zoning). It is the responsibility of the applicant to secure the appropriate permits prior to beginning work. A building permit may be submitted at any time for review, but no work may begin until all required grant and permit approvals have been received. 5. Begin Work After the contract has been executed, necessary permits have been obtained, collateral and insurance has been provided, the applicant may begin work. All work must begin within six months of agreement execution. 6. Project Completion/Reimbursement of Funds Grant recipients shall provide a request for reimbursement and required documentation for work completed. The Village will provide reimbursement up to the agreed upon maximum after eligible grant work has been inspected and certified as to its completion and compliance with the approved grant contract. In the event the village finds that the finished work product does not meet code requirements or is not consistent with the approved grant application or any approved job changes, the Village has the right to withhold grant reimbursement. 7. Annual Follow-up/Release of Collateral Annually, the applicant will be required to provide the Village with updated annual balance sheets and income statements for five years following project completion. Additionally, e ach year the restaurant remains open, 1/5th of the cash funds/letter of credit reduction is returned to the applicant. Complete & Submit Application Applications Reviewed by Village staff Restaurant Grant Program Agreement Village Board Consideration Recieve Award Package Building Permit Submittal & Approval Begin Work Complete Project/Submit Reimbursement Payment of Grant Annual Follow-up Restaurant Grant Program, Page 3 of 8

4 Restaurant Grant Application General Project Information Restaurant Name: Project Address: Project Type: (select all that apply) Applicant Information Applicant Name: Address: Phone: Property Owner Information Property Owner Name: Restaurant Ownership Address: Phone: Demolish Building Expand Existing Restaurant Space Conversion of Non-Restaurant Space New Construction/Building Addition Remodel Existing Restaurant Space New Lisle Restaurant Business Structure: (select all that apply) Corporation General Partnership Limited Partnership Sole Proprietorship Franchise Owners/Percent of Ownership: (attach a separate sheet if necessary) Owner Name Percent of Ownership Restaurant Operations Type of Cuisine: Existing Square Feet: Existing No. of Seats: Hours of Operation: Proposed Square Feet: Proposed No. of Seats: M: T: W: R: F: Sat: Sun: No. of Employees: Full Time: Part Time: Restaurant Services Provided: (select all that apply) Breakfast Lunch Dinner Liquor Bar Banquets Outdoor Dining Catering Entertainment (specify type): Restaurant Grant Program, Page 4 of 8

5 Restaurant Grant Worksheet Restaurant Name: Address: (A) Estimated Grant Eligible Project Costs: $ (B) Total Proposed Grant Award (maximum funding is $40,000): $ Award Percentage of Eligible Project Costs (A B): % Property Tax Projections (A) Current Property Tax: $ (B) Projected Property Tax: $ Percent Change (B A)/A)*100): % 5 Year Sales Tax Projections (use separate sheet if preferred) YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 (A) Current Sales Tax, existing restaurants only: $ (B) Projected Sales Tax: $ Percent Change (B A)/A)*100): % (C) Projected Sales Tax $ Percent Change from Year 1 (C B)/B)*100): % (D) Projected Sales Tax $ Percent Change from Year 2 (D C)/C)*100): % (E) Projected Sales Tax $ Percent Change from Year 3 (E D)/D)*100): % (F) Projected Sales Tax $ Percent Change from Year 4 (F E)/E)*100): % Total Five Year Projected Sales Tax (A + B + C + D + E + F): $ Required Documentation for Submittal 1) Owner/Operator Qualifications and Business Plan: Applicants shall have a minimum of three years experience owning, managing or as a chef at a successful restaurant. Provide a Business Plan describing the cuisine (including a menu or sample menu with pricing), concept for your restaurant, history of your company, all owners relevant experience (including other restaurant(s) owned), target market, marketing strategy and reasons for choosing Lisle. Restaurant Grant Program, Page 5 of 8

6 2) Drawings and Plans: Plans depicting the proposed building and site modifications shall be submitted (depending on the scope of improvements, additional documentation may be requested). Site/Landscape Plans depicting proposed buildings, building additions, new landscape or other proposed site modifications. Building Elevations depicting proposed colors and materials Signage Plan depicting the size and location of proposed monument signage or wall sign channel letters Floor Plans depicting the restaurant layout and number of seats 3) Cost Estimates: Two detailed contractors estimates are required for the work performed. Copies of detailed cost estimate must be provided. Cost estimates shall be comprehensive and include the following: Two different contractor estimates for grant eligible work One detailed estimate for other costs associated with the project including but not limited to architectural and engineering design fees, legal fees, permit fees and other site improvement costs (i.e. landscape). Total Improvement Costs Grant Eligible Costs FOR VILLAGE USE ONLY Grant Contribution ESTIMATE 1: ESTIMATE 2: 4) Financial Information: Verification of Funds: Provide a detailed letter of commitment from the bank and/or funding source(s) and type(s) certifying adequate funds to complete the project. Previous/Existing Restaurants: If you own an existing restaurant or have previously owned a restaurant, provide three years of audited annual financial statements and two years of sales tax returns. Revenue Projections: Provide forecasted income statements, balance sheets, cash flow statements and capital expenditure budgets for the next five years. A. Financial and Credit Factors To determine credit worthiness, Village staff and the EDC reviews credit reports of the borrower, other financing commitments (if any) and a comprehensive business plan. 1. Repayment ability 2. Equity 3. Liquidity 4. Break-even analysis 5. Efficiency of operations 6. Trends 7. Credit history B. Market 1. Market analysis 2. Competition 3. Market strategy 4. Unique market conditions C. Management and Organizational Factors 1. Key personnel 2. Management structure and decision making Restaurant Grant Program, Page 6 of 8

7 D. Collateral 1. Amount and valuation 2. Type E. Mission F. Technical Assistance 5) Owner Authorization: Provide a letter of authorization from the building/property owner stating permission for the application and proposed improvements. 6) Submittal Copies: Two copies of the completed application and support documentation should be submitted to the Community and Economic Development Department. Applications may be dropped off at Village Hall between 8:00 am and 4:30 pm Monday Friday, or mailed to: ATTN: Pete Kelly, Economic Development Coordinator Community and Economic Development Department 925 Burlington Avenue Lisle, IL Grant Award Package Information (post application) If the Village Board awards the applicant funds, the applicant will receive an award letter and award package from Village staff following approval. After funds are awarded, but prior to beginning any work the following additional documentation will be required as generally described below. 1) Collateral: The applicant will be required to provide collateral or the full amount of the grant, which can be in the form of cash or a letter of credit. Each year the restaurant remains open, 1/5 th of the cash funds are returned to the applicant or letters of credit are reduced by 1/5 th. If the restaurant closes or relocates in less than five years, the applicant will have a six-month grace period to find a comparable restaurant for the space. If no restaurant is found, the applicant will forfeit a prorated portion of the collateral to the Village. 2) Certificate(s) of Insurance: The applicant, contractors, subcontractors and all vendors must furnish the Village with certificates of insurance in the amounts noted below. Worker's Compensation - Statutory Limits Employer's Liability - $500,000 Bodily Injury per Occurrence Commercial General Liability $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. The general aggregate shall be twice the required occurrence limit. Minimum general aggregate shall be no less than $2,000,000. Umbrella Liability Policy: $1,000,000 Bodily Injury and Property Damage Per Occurrence $2,000,000 General Aggregate Automobile Liability: $1,000,000 Combined Single Limit Per Accident for Bodily Injury and Property Damage. 3) Certified Payroll Documentation: Grantee shall furnish all such certified records to the Department of Labor or the VILLAGE as may be required by The Illinois Prevailing Wage Act (820 ILCS 130/.01 et seq.). Restaurant Grant Program, Page 7 of 8

8 4) W-9 (1099) Form: All grants are subject to federal/state taxes and are reported to the IRS. Applicants shall consult with their tax advisor for tax liability information if additional guidance or information is required on the impact of taxes. 5) Construction Deadlines: Projects involving minor renovation must have completed construction within six (6) months after the execution of the Restaurant Grant Agreement or the Agreement shall terminate and the financial obligation on the part of the Village shall cease and become null and void. Projects involving demolition, new construction, or major renovation must receive building permit approval within six months following the execution of the signed Restaurant Grant Agreement and must have completed construction within one (1) year of the date of execution of the signed Restaurant Grant Agreement or the financial obligation on the part of the Village becomes null and void. Annual Follow-up/Release of Collateral Annually, the applicant will be required to provide the Village with updated annual balance sheets and income statements for five years following project completion. Additionally, e ach year the restaurant remains open, 1/5th of the cash funds are returned to the applicant or letters of credit are reduced by 1/5th. Applicant Statement I, hereby make an application to the Village of Lisle for a Restaurant Grant in the anticipated amount of $. I understand that my application must be approved by the Village Board and that it must conform to the established program guidelines, as well as, specific design recommendations of the Village of Lisle. I have read and understand the Restaurant Grant Program Application in its entirety. If approved, I understand that I will be required to enter into a Restaurant Grant Agreement with the Village of Lisle and that all work performed is subject to the Village Code (i.e. including but not limited to building and zoning codes) and agreement provisions. Applicant Signature Applicant Name (please print) Restaurant Grant Program, Page 8 of 8