City of Metropolis City Council met May 26.
Here is the minutes provided by the council:
A Public Hearing to discuss and consider the City’s proposed Downstate Small Business Development Program grant applications. As per the COVID-19 Executive Orders, the meeting was being held and attended remotely via telephone conference. Honorable Billy McDaniel, hereby called the Public Hearing to order at 5:30 p.m. requesting that the attendance be taken of those attending.
City Council and Staff member present: Chad Murray, Rick Abell, Jan Adams, Billy McDaniel. Al Wagner, Jeremy Holley, Trish Steckenrider (GMCVB), Areia Hathcock (Planet)
The members of the public present included: Kyle Heine, Lisa Gower, Troy & Lori Deasel, Becky Whitley, Karla Ogle, Lori Russell
Chad Murray, the Zoning Administrator for the City of Metropolis, began by making the following comments regarding the funds available from the Department of Commerce and Economic Opportunity (DCEO). DCEO has adjusted funds from the US Department of Housing and Urban Development to address needs specific to small businesses that have experienced detrimental impact due to COVID-19 through the new Downstate Small Business Stabilization Program. The grant is designed to provide working capital to fund the community’s most vulnerable businesses economically impacted by the COVID-19 virus. The program makes funds available for 60 days of verifiable working capital up to a grant ceiling of $25,000 to eligible businesses.
Murray further explained that the purpose of the hearing was to discuss and consider the City’s proposed Downstate Small Business Stabilization Program grant applications for local small businesses in the amount of $149,907.53 to aid the following businesses: Heine Dental, Sixth and Vintage, Yesterday’s, Russell Heating and Air, Russell Electric, and Creations the Florist.
Murray presented a publication of certification for the notice of public hearing along with a clipping of the notice from the Metropolis Planet indicating the public due process procedure had been met.
He further stated that there will be no displacement or relocation resulting from the proposed projects.
Finally, Murray remarked that through this hearing process, the City is soliciting and assessing the Community Development and Housing Needs of our community for the application process. A detailed list of those needs are as follows:
1) The need for economic stabilization and development through support of local businesses and recruitment of new businesses to the community through the Downstate Small Business Stabilization Program which provides assistance to small businesses in the community, specifically at this hearing discussion of support for Heine Dental, Sixth and Vintage, Yesterday’s, Russell Heating and Air, Russell Electric, and Creations the Florist.
2) The need for adequate, reliable, clean, and affordable water supply with the conversion and automation of our water treatment plant.
3) The need for adequate and reliable stormwater management with wastewater treatment by completing our objective of storm and sewer separation projects.
4) The need for improved, efficient, safe, and reliable mobilization of residents, customers, visitors, and tourists through street improvements including overlay East 12th Street from Gibbons Street to US Highway 45 and Woodhaven Subdivision. Improving frontage road at Devers Road and US Highway 45.
5) Neighborhood stabilization by combating blight in neighborhoods where individuals have little funding to rehabilitate or demolish structures by:
a. Demolishing dilapidated structures with assistance from the Illinois Housing Development Authority.
b. Demolition reimbursement program to residents from local funding sources.
6) Commercial stabilization by combating blight in business districts where individuals have little funding to rehabilitate structures without assistance through our façade improvement program.
Let it be stated that the grant applications discussed in this hearing, subject to Council approval, will be submitted around May 27, 2020, to the Illinois Department of Commerce and Economic Opportunity, Office of Community Development.
The first application to be discussed is for Heine Dental. Let it be stated that the City’s Downstate Small Business Stabilization Program grant application supporting Heine Dental includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances:
Kyle W. Heine Dental Office opened in November of 1996. After completing dental school, I wanted to be able to practice in the town I grew up in and loved. Through the years we have seen slow steady growth. We currently have 2800 patients we see on a regular basis. I have enjoyed being able to serve the fine people of Metropolis.
COVID-19 has struck our practice hard financially. By order of the IDPH, we have been restricted to treating only emergency and urgent dental needs. This has dropped our production by over 80%. We actively pursued funding options open to business through the State and Federal Government and secured $36,645.00 through the Paycheck Protection Program. This allowed us to bring our staff back to the office and continue wage payments to our staff until June. We have also secured $6,000.00 from an Economic Disaster Loan, however with the additional costs associated for procuring PPE as well as our monthly capital expenses, we anticipate a funding gap of, roughly $40,000.00 for 60 days of operating expenses.
Our most important asset to our business is our employees. As mentioned, we did receive the PPP loan, however those funds will be exhausted by the end of May. For this reason, we are requesting $24,999.95 for the sole purpose of continuing payroll for 60 days. Our average rate of pay, excluding Owner Dr. Heine, is 21.56 per hour for 4 employees.
Every day our office is unable to continue normal operations will delay a return to any economic normalcy. Our practice heavily relies on insurance reimbursements that will not come immediately, thus continuing a funding gap. In addition to delayed reimbursements, annual payments will be due for property taxes and malpractice insurance during the next 60 days. Receiving this grant is vital to the continuation of our business and service to the people of Southern Illinois.
Supporting this project will not have an impact upon the community finances beyond grant preparation and administrations, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. That the Heine Dental grant application has been available and will continue to be available for public review during regular business hours by contacting City Hall at (618) 524-4016 or online at www.metropolisil.gov.
At this time we invite any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilizations Program grant supporting Heine Dental that will be considered by the City of Metropolis City Council, Monday, May 26, 2020.
With no comments or further discussion, the public hearing continued with the next application.
The next application to be discussed is for Sixth and Vintage. Let it be stated that the City’s Downstate Small Business Stabilization Program grant application supporting Sixth and Vintage includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances:
Sixth and Vintage Boutique and Marketplace is a quaint shop located in Uptown Metropolis, Illinois. It is a boutique that specializes in trendy clothing, jewelry, unique home décor, home fragrances, and gift items. Sixth and Vintage first opened in 2012. In 2013, the purchase of the “Van Hooser” building, built in 1925, became the new home of Sixth and Vintage. In the summer of 2015, Lori Deasel acquired 50% of the business with business partner, Julie Bailey. In 2016, an expansion was built and Sixth and Vintage Marketplace was opened. On August 1, 2017, Lori Deasel became the sole owner of Sixth and Vintage Boutique and Marketplace, LLC.
Sixth and Vintage needs the CDBG grant to resume operations. Due to the closure of our business on March 22nd, 2020 we were forced to lay off our 2 part time employees. We anticipate using this grant funding to bring the employees back to the business once we can resume full operations. Bringing employees back to the business will also allow Sixth and Vintage to once again contribute to the State of Illinois in the form of payroll taxes. In 2019, our small business contributed over $3,200.00 in payroll taxes.
The timing of this closure could not have been worse. The shop has lost 90% or more of our sales when compared to the same time last year. As the only provider of tuxedos in Metropolis, Sixth and Vintage saw over a $2000.00 loss in tuxedo revenue alone due to the cancellations of Proms and many weddings. This, as well as well as, the loss of sales for Mother’s Day, Graduations and summer events like the Superman Celebration has cause the business to be financially over extended, as inventory was purchased for this time prior to the closure. Prior to closures 98% of our sales occurred in person. We now have a stronger online presence; however, we still anticipate steep decreases in sales.
Without proper funding to pay operating expenses, Sixth and Vintage may not be able to continue through the remainder of this unprecedented time – ultimately causing our well- established business to close its doors. The requested grant money will be used specifically for working capital in the amounts listed on the GATA Budget and below. Those expenses per month include:
• Rent – $696.00
• Personnel - $2960.00 – 2 part time employees at $9.25/Hour
• Utilities – $700.00
• Fringe Benefits - $306.00 – Fed & State Withholdings, Fed & State Unemployment, Liability
• Telecommunications - $550.00 – Business Phone, Business Cell & Internet
• Supplies - $150.00 – Office Supplies – Paper, Ink, Postage/Shipping, Additional Cleaning Supplies
• Contract Services - $105.00 – Cleaning Service & Pest Service
• Marketing - $1000.00 – Social Media, Print & Broadcast Media Buys
• Inventory - $6000.00 – purchases needed for upcoming fall and holiday season
Sixth and Vintage is requesting a CDBG grant in the amount of $24,938.00 as this will provide working capital at the rates listed above and will allow us to bring back the 2 part time employees we have been forced to lay-off at this present time. This grant will ensure Sixth and Vintage 60 days of operating expenses.
Sixth and Vintage has received funding from the Economic Injury Disaster Loan in the amount of $3000.00. We are grateful to God for all the help that we are given, however this loan would certainly not cover what we need to continue operating. We also would like to note that on the April Bank statement there is a deposit for $35,000.00. This was a loan we had to secure from a local bank to pay for inventory purchased prior to the closure.
We love our community and have chosen to operate our business in Southern Illinois. We take pride in helping Metropolis grow. We are prayerful that Sixth and Vintage will continue to serve the community of Metropolis, and Southern Illinois for many years to come.
Supporting this project will not have an impact upon the community finances beyond grant preparation and administrations, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. That the Sixth and Vintage grant application has been available and will continue to be available for public review during regular business hours by contacting City Hall at (618) 524-4016 or online at www.metropolisil.gov.
At this time, we invite any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilizations Program grant supporting Sixth and Vintage that will be considered by the City of Metropolis City Council, Monday, May 26, 2020.
With no comments or further discussion, the public hearing continued with the next application.
The next application to be discussed is for Yesterday’s. Let it be stated that the City’s Downstate Small Business Stabilization Program grant application supporting Yesterday’s includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances:
For over a decade, family owned Yesterday’s, has served the community of Metropolis southern style home cooking. We are known for our delicious fried catfish, as well as other popular menu items. Yesterday’s offers dine in, drive-thru and carry out services. We pride ourselves as an employer for the local community. Sadly, due to COVID-19, we have had to temporarily lay-off our entire staff and close our doors. With the assistance from this grant, we will bring back our staff and re-open our doors when it is deemed safe by the Illinois Governor.
Yesterday’s is requesting, a grant in the amount of $24,999.98. This amount will allow the facility to bring back our 13 employees at a rate of 9.25 per hour for 207.9 hours. Though there are many other capital expenditures that will be necessary for us to re-open, we are committed to bringing our employees back and can think of no better use of this money. Yesterday’s did receive a PPP loan in the amount of $53,680.91. (This amount is reflected in the current cash balance on the Net Income Verification Form) We were pleased to receive the PPP Loan, however this money will be returned in full as it was not fiscally responsible to operate at a deficit for an undetermined length of time. For this reason, we closed Yesterday’s until we can reopen for walk in service. This closure forced us to lay-off all 13 of our employees. (14 total including the owner) Bringing our employees back is our number one priority and necessity upon re-opening.
By receiving the full amount requested of $24,999.98 to assist with payroll, the other expenses are manageable. Yesterday’s averages $11,000.00 net income for the months of June, July and August. If allowed to re-open by this time frame, we anticipate slightly lower revenues of $10,000.00 per month.
Yesterday’s wants to re-open as soon as possible to continue to contribute to the community and State of Illinois. Yesterday’s is an avid supporter of events and fundraisers in the Greater Metropolis Area. On average, we donate approximately $2,200.00 worth of food and gift cards to local organizations. Yesterday’s pays approximately $40,000.00 is annual sales tax and almost $20,000.00 in payroll taxes annually.
Supporting this project will not have an impact upon the community finances beyond grant preparation and administrations, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. That the Yesterday’s grant application has been available and will continue to be available for public review during regular business hours by contacting City Hall at (618) 524-4016 or online at www.metropolisil.gov.
At this time, we invite any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilizations Program grant supporting Yesterday’s that will be considered by the City of Metropolis City Council, Monday, May 26, 2020.
With no comments or further discussion, the public hearing continued with the next application.
The next application to be discussed is for Russell Electric. Let it be stated that the City’s Downstate Small Business Stabilization Program grant application supporting Russell Electric includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances:
• We are currently providing residential and commercial electrical, contracting and construction services.
• Provide electrical installation and repair for residential, industrial and commercial customers. Install fire alarms, telephone & data systems, and fiber optics for residential industrial and commercial customers.
• Russell Electric Contacting has been in operation for 11 years.
• CDBG funds will be used for monthly rent, utilities, and operating expenses. Due to nonpayment of contracts caused by COVID-19, the company has suffered loss of revenue and income.
• Funding will be vital for sustaining company staff employment and operations.
Supporting this project will not have an impact upon the community finances beyond grant preparation and administrations, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. That the Russell Electric grant application has been available and will continue to be available for public review during regular business hours by contacting City Hall at (618) 524-4016 or online at www.metropolisil.gov.
At this time we invite any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilizations Program grant supporting Russell Electric that will be considered by the City of Metropolis City Council, Monday, May 26, 2020.
With no comments or further discussion, the public hearing continued with the next application.
The next application to be discussed is for Russell Heating and Air. Let it be stated that the City’s Downstate Small Business Stabilization Program grant application supporting Russell Heating and Air includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances:
• We are currently providing residential and commercial heating and air services.
• Provide existing heating and air repair, and installations for residential and commercial customers.
• Install new heating and air systems for residential and commercial customers.
• Russell Heating & Air has been in operation for 4 Yi years.
• CDBG funds will be used for monthly rent, utilities, and operating expenses.
• Due to nonpayment of contracts caused by COVID-19, the company has suffered loss of revenue and income.
• Funding will be vital for sustaining company staff employment and operations.
Supporting this project will not have an impact upon the community finances beyond grant preparation and administrations, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. That the Russell Heating and Air grant application has been available and will continue to be available for public review during regular business hours by contacting City Hall at (618) 524-4016 or online at www.metropolisil.gov.
At this time we invite any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilizations Program grant supporting Russell Heating and Air that will be considered by the City of Metropolis City Council, Monday, May 26, 2020.
With no comments or further discussion, the public hearing continued with the next application.
The final application to be discussed is for Creations. Let it be stated that the City’s Downstate Small Business Stabilization Program grant application supporting Creations includes the following history, activities that will be undertaken with grant funds, amount, scope of project, costs, benefit area, and impact on community finances:
36 years ago, my husband and I started Creations the Florist in Metropolis, IL. After Danny’s death in 2016 due to cancer, I became the sole owner and Creations became my only source of income. Creations the Florist is the only florist in Metropolis, IL. Not only is Creations a much-needed business in the community it is a staunch supporter of many activities and fundraisers. On average, the small business donates over $8000.00 worth of merchandise annually to assist others in raising funds for worthy causes.
2020 began with record breaking numbers for the well-established business. Income increased by 37% from January 1 through March 20 compared to 2019. Creations planned to expand their workforce and began accepting applications. Once Covid-19 began, the hiring process was halted.
Being deemed a non-essential business, Creations the Florist closed our doors on March 21. As of May 1, we can do curbside service and no-contact delivery. For the florist industry, all major floral holidays except for Christmas, happen in the Spring. The income received from sales during this time, sustains our business through the slow days of Summer when there are no floral holidays.
While funerals are the “bread and butter” of a florist, the restrictions on funeral attendance and services has greatly reduced the orders we receive. On average, our revenue for a funeral is $2,500 while during this time our revenue has been $300. Creations is the only florist in Metropolis, which serves many local schools including Paducah during prom season. We typically see prom revenue of $4,600, however, all proms were cancelled this year resulting in a 100% loss of revenue for this market segment.
Other large revenue producing occasions were missed during the closure including end of school occasions, father/daughter dances, graduations, and dance recitals. There were no sales for Palm Sunday, Easter, Secretary’s Day, Doctor’s Day, Nurse’s Day, and Teacher’s Day. Four weddings booked for Spring and Summer were cancelled due to Covid-19’s restrictions and we have two Fall weddings that are questionable. This, as well as loss of general sales for birthdays, anniversaries and get-well orders, has devastated our small business. And although we were able to open in time for Mother’s Day, the limitation of no customers inside the store greatly reduced the potential income.
Based on 2019 sales, the income from March 21 to April 30 would have increased by $22,565. Projecting that the growth obtained from January to March continued at the same pace, Creations would have experienced a $38,000 growth during our time of closure. Because of these losses, we are requesting $25,000.00 from the Downstate Grant to sustain our business a minimum of 8 weeks of operations.
Of the requested $25,0000, $12,480.00 will be allocated to salary and wages. This will allow the business to operate with 3 employees at a rate of $13.00 per hour for 320 hours of work. It is of utmost importance that Creations keeps our employees on payroll. In addition to staff, inventory is a necessity for the services we provide. Based on historical inventory expenses, we need $6260.00 per month for 2 months totaling $12,520.00 to meet the demands of our customer base.
Supporting this project will not have an impact upon the community finances beyond grant preparation and administrations, as the full project funds requested of $25,000 are from DCEO to support this business. The participation agreement between the City and this business holds the business responsible to pay back funds if they do not hire staff to their prior COVID-19 level. That the Creations grant application has been available and will continue to be available for public review during regular business hours by contacting City Hall at {618) 524-4016 or online at www.metropolisil.gov.
At this time, we invite any interested individuals to express their personal observations or comments regarding the proposed Downstate Small Business Stabilizations Program grant supporting Creations that will be considered by the City of Metropolis City Council, Monday, May 26, 2020.
On the consensus of all present, the comments gathered were of thanks and appreciation both from the applicant and City officials and staff. Each applicant was recognized for their unique individual needs during the ·pandemic and all have been wished the best of luck on their applications.
With no comments or further discussion, the public hearing was adjourned by Honorable Mayor McDaniel at 5:46 p.m.
https://www.metropolisil.gov/wp-content/uploads/2020/06/2020-council-minutes-06-08-A.pdf
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