 The meeting of the redevelopment authority will come to order. And let's identify who all is here. I see staff, I see Chad, and then Steve Hartman, Amy Horst, Tray Mitchell, Dave Gaines, Owen, and David Soxie. Is that it? Yeah. Okay. Steve Harrison is there. I don't know if you've heard him. Bert, Steve Harrison's online. Steve, okay. Thank you. Okay. The meeting will come to order and let us pledge to the flag. I pledge allegiance to the flag of the United States of America. And to the republic for which it stands, one nation under God, indivisible with liberty and justice for all. Thank you so much. Roberta, Roberta, if I can just interject, Mayor Van der Steen just joined us in the chambers as well. Perfect. Thank you, Mayor. Okay. You've seen the agenda. Do we have any conflicts of interest with the items and the business on the agenda? Okay. Hearing none, let's move on. The minutes from the July 22nd meeting, chair will entertain a motion to approve. So moved. Second. Move by Harrison seconded by gas. Any additions, corrections. Hearing none. All those in favor say aye. Aye. Aye. Aye. Aye. Opposed motion carries. Okay. First item on the agenda. And, um, we have a discussion of, uh, the black pig and possible action on behalf of catering, culinary art. And I speak Catherine, hurry. Did that Catherine? Okay, that's great. Okay, Chad, you want to give us the background. So Katie you're on mute. So Katie's on the phone representing the Black Pig and Warren from Hiawatha's bank is on the phone representing the bank. We forwarded a letter that we received from them in regards to the $200,000 business development loan that we have for Black Pig and their request to defer payments for I'm believing it's six months and I would like to confirm that what the actual request is but it appears that the bank is agreeing to make a payment deferral on the first mortgage and the second mortgage is with SBA and we must be in third I'm guessing. So maybe it would be just as easy as Warren or Katie if they would like to describe what's happening here. Please, Katie how about you? Sure, so when this all began we did defer, we do have a commercial loan with Hiawatha for the mortgage of our building that was deferred for six months and I believe we deferred that for we just recently deferred that a second time and then we also do have the SBA loan which is I think currently being paid through the CARES Act and then that we are also looking to defer after that I think that goes into effect this month or next month that that terminates. Yeah the first payment would be first payment you guys would be responsible for be October right now but we would we have agreed to defer that. Right, so just looking obviously our business primarily I guess I would say probably 50-50 is the restaurant and then the banquet space our banquet is really where we're struggling the most the restaurant in itself is down looking through financials of this year we're operating roughly at about 60% that's through the basically if you're taking year-to-year comparisons from last year we're at 60% in the restaurant and 37% in banquet if you're just taking March through current we're actually at 49% in the restaurant and 27% in banquet so typically this time of year we've had a lot of most of our weddings have jumped ships they're either canceling they're moving to next year which doesn't offer us any revenue for for this coming year and the ones that we are seeing which is again probably you know 40% of them maybe have stayed they are considerably down in numbers all of our corporate that we typically book as supplemental is gone corporate's not doing anything right now so really we're just and looking forward to next year we're still getting bookings we're still getting inquiries we're still getting people that are interested in our business and our space but it doesn't start until May of next year so we've got little you know I think we've got one event you know through the winter that we're hoping can just kind of you know have a tiptoe through to them but really we're trying to get to May that's what it boils down to right now okay and what would the banker like to add some information here the well we have we have two mortgages right now as the letter says the first mortgage and the SBA second mortgage which was used for the build up we have agreed to we verbally agreed to extend the four to four bear payments to basic four bear payments to to through April of next year which would be basically nine months from today the Katie and Rob have added to the tax base it developed the building the recent the most recent present we have on file is May of 18 which shows a value of a million four which would cover our first mortgage second mortgage and your your third position we have the utmost confidence in Rob and Katie and their ability to manage the business they've done all they can but obviously these are very difficult times and when your business model is based on groups and the groups are groups are going on it's it's tough to tough to address that the positive thing that I see is that bookings are coming back for next year they'll have time to time to adjust their business model their practices their pricing perhaps but to to generate the capital that they need to get to get through this I I look at this the bank looks at this at this situation is it's kind of a bridge um good people that some bad things have happened to that that needs some help to get from here to there and we're asking the the bank has made the commitment we're asking the we're asking the redevelopment authority to help them establish that bridge to get from here to there and to keep them in business can I ask a question what is the first and second loan what are the what's the amounts um well first our first mortgage is 322,000 that's a convention alone between the bank and culinary arts the second mortgage is roughly 870,000 that's an SBA loan that is getting paid down through the one of the CARES Act provisions provided for six months of payments on the on any SBA guaranteed debt which the last payment would be September so they would be responsible for the August payments with 870 the $870,000 balance it will come down with the September payment a little bit but when you put all three together it it is within the that billion four appraised value so I it's just about right on there right yeah is it just a quick question on the interest did you guys give any consideration on the interest payments we have not adjusted our interest payments right now our role is still big to 100 percent of the interest amount right with the the SBA has made their payments which has helped the we have not entertained we we have not dropped the interest rates at this point we're accruing those that would be possibly a consideration down the road that we plan B at this point we we you know for bearing payments like on the first order the SBA is actually making the payments of the second mortgage we will we've not we haven't dropped our interest payments yet I have one other question what were sales in 2019 uh so net well we don't have a we didn't bring with us the full 2019 we basically did a comparison march through all again million five to a million six total sales correct and this year you're running closer to half that you were 60 percent of one and 39 percent of another or some of the different dates so where are you through july what are your sales well we have through august okay through august okay so net sales um year to date 19 was 60 basically 6500 or 650,000 sorry and then um this year we're at 380 okay thank you I have a question Dave um I'm in favor of this this is a no brainer but the rest of the committee may want to crucify me I don't want to care but I would go further um frankly I would I would I would forgive the six months of payment if the sba could forgive on the sb sbalo six months of payment the banks are almost automatically given deferral hardly even have to say please and given importance businesses I mean this is critical to the future of the downtown businesses like this and I don't think anybody could deny that businesses like the black pig were really truly hit the hardest in the pandemic others were hit hard but I mean really because you literally they were ordered to shut down um and so to me the loss of six months of principal and interest is a small investment to make if it helps them because they're never going to recover this year's revenues I don't think I mean I shouldn't say never but it's going to take it take ban or banner banner years in the future to recover what they've lost this year both in revenues and in blood sweat and tears so I I really think you know they you know desperate times call for desperate action and I think this is one of those things where this is one way where the city you know what um this is our this is how we're showing our commitment to you making it you know this is our this is our our our support for you we're we're we're going to we're going to cancel six months of payments and hopefully that gives you a better chance to get to me because they're going to still struggle even with the deferral that's you know and with the deferral company that often start making payments so that's how I look at it you may if you know if the rest disagrees I understand I just think it calls for that I guess to follow up on Dave's point uh first we should understand what that number is what I also would add one is that Iowa seems to have a little bit of wiggle room and if RDA is willing to forgo payments for six months uh and forgive those would the bank be willing because their position's going to improve be willing to forgo the interest accrual on those balances for that same time um you're from a regulatory standpoint uh the SB loan is difficult for us to do that once it's done it's sold in the secondary market it's difficult to to change the interest rate or terms on that we could look at reducing the interest rate on the first mortgage um I can't promise that I can I can sit here and promise the furrows we've agreed to commit to that um with regards to the no interest or actually deferring interest that again from a we have regulators and depositors the answer to when that's a little difficult we can be patient um we are improving the bank's position as a third lender and then for going those payments and it would just seem that you know folks need more than just a rope to help them out I agree with Dave I mean you're really asking them future revenues to not only make up or to meet their current debt service but then in addition to meet the additional deferrals that are out there and it just seems like the whole can gets deep for them and I think we've got to give them a fairer and a chance of being successful with this and stops them to pull out or whatever we can do in a negotiator whatever people that you have to go to you could indicate that RDA is willing to do that but we need to we need to get in a little bit more than just the deferral what is the current interest rate uh I'd have to we did this back when rates were raised were low I believe the SP alone is 1 over prime or 4.25 percent I think the other one is wrong 4 percent so we're not we're being very we're being very fair just so the RDA knows the original loan from us was 200 000 and the balance as of the end of last year was 117 000 as of December 117 112 uh price of the payments in 2020 so far have quoted just under 14 000 with 1800 dollars worth of interest so that's what we're talking about 100 grand but you're saying that the 1400 or 14 000 is payments for nine months uh payments so far in 2020 through to august so it would be nine months right you'd be talking give or take about 10 000 dollars that we would be forgiving plus related interest correct what precedent chatter issues do we come out with this because I like this idea as well any issues there no it's totally up to you guys I second Dave gas's motion okay so David's motion is to forgive six months of principal and interest payments and then resume at the end of six months month seven I don't know they're telling us they can't get the cash flow positive until May I mean nobody's going to go out in the flu and in the winter season here I think that's going to be difficult for them to get get any more banquets and if they're starting to book stuff a wedding or whatever in May I think you got to look at that calendar if we're going to do this let's do it right so they got a chance to make it I think you should do it September October November December for four months and then the first four months of calendar 2021 that would be an eight eight months to get them to me they said the revenue doesn't really come back until May okay I agree with what Dave I accept as a friendly amendment okay so we are talking in eight months forgiveness on this particular loan that was an original loan of 200 000 and we are requesting politely that the bank review review their interest on the original loan for them okay any other comments we have we have to do a roll call vote because we're on Skype go to meetings let's start with Dave gas how do you vote yes yes Harrison yes or yes pray Mitchell who has joined us uh yes James Owen yes Dave Soxie yes and chair votes aye okay motion carries bless you moving forward and good luck thank you all very much hang in there you guys go get them thank you for consideration thank you okay next order of business um discussion on the loan balance um and this arrived in your email this morning um Chad do you want to you want to start the discussion it is a fairly lengthy list of of all of our loans so what I so what I would say is um it was a struggle to get this and I think there's some challenges with it so um I haven't had time to work with the finance department um to work through because the person that did this is on vacation this week so um what I would say is uh I think so there's comments on the far right side of the spreadsheet of when they're paid through when they're last paid um you know some of this stuff I've been asking for trying to get this stuff for a number of quarters because the chair's wishes is to have this on a quarterly basis um and and yeah so the last time we got this was the end of last year so we're nine months into the year um I like to try to I'm not making excuses but I like to try to get this on a more regular schedule so we can keep up on people in case they do fall behind or if they have financial problems that we can try to connect with them so the notes that are on here um to be honest with you I'm not sure about a few of them myself because I was very surprised that there some of the people are making payments but they're so far behind so I think what I need to do is um we need to hold this I don't really want to talk about it at this point we'll put it on the next agenda we'll share it with you again um and then I will dig into some of this stuff to have a little bit more information before we go through it because frankly I don't have the answers of what has been receded against these loans so um I would look for a motion to hold this and we'll circle back to discussing these in more detail at our next meeting okay I'll make the motion before I do just the format of the report um you know the performing loans I think ought to be in a separate category that it would be nice to categorize these things where you know you got the performing loans that are really non-discussion points then you got the loans that probably have maybe have missed the payment or two and then you've got some of these loans that have had no activity on and it would seem if we could bucketize these things so we can concentrate on the ones that make a difference instead of having to kind of sort through this and it's just a way of looking and saying okay if we're spending our time let's spend our time talking about the ones that have a problem I love the term bucketize Mr. Harrison I will continue to use bucketize and and and I can I actually agree and um I think it's a great idea to hold this if it's also possible I would like to see the origination date on some of these loans so that we have an idea of when it was given and and we we know when the balances do but you know I would like to see that if it's possible okay here's going to entertain a motion to hold do we need a motion yeah I made the motion yes okay see Harrison moved is there a second second second okay who seconded I'll try Trey Trey seconded okay um is there any further discussion yeah should we have a recommendation coming back from staff based on what we just did to maybe look at some of these as well and have a recommendation for the meeting yes we can do that okay all right any further discussions thank you for that okay all those in favor of holding say aye okay opposed motion carries thank you so much and we will I'll take another look at it to see what we've got okay here we'll entertain the motion to convene in closed section session under exemption section 19.851 of the Wisconsin statutes where competitive bargaining reasons require a closed session move back Amy moved is there a second second second okay roll call vote um Harrison all right Soxie all right Owen all right Mitchell hi gas hi well likey finesky votes aye or Amy I great David your little logo for me says Rosa that's why I noticed that yeah during none we are adjourned thank you for this morning