Title/Name/Summary
Revolving Loan Fund - Orland Park Bakery
History
The Village of Orland Park has received a revolving loan fund application from Orland Park Bakery to assist with their relocation and expansions plans at 14850 S. LaGrange Road. The project will result in construction of a larger bakery and the purchase and rehabilitation of equipment. The Orland Park Bakery has been a thriving business in the community for over 35 years. The current owners (Dan & Thomas Major) have managed the bakery for the last 8 years. A summary of the project/loan includes:
Total Project Cost - $830,000
Total Jobs - 28 FTE
Bank Participation - $260,000 - Marquette Bank - Line of Credit
Private Equity - $470,000
Village Loan - $100,000
Term - 5 year w/balloon - 30 year amortization
% Rate - ½ of prime - 1.625% - estimated
Loan Disbursement - after completion of construction
Collateral - lien on equipment
Earlier this year, the Board of Trustees approved a Relocation Incentive Program for impacted Orland Plaza Businesses. This program included participation in the Mayor’s business expansion and retention loan program, up to $100,000. As the Orland Bakery is applying for this loan through this special program, approval of this loan was not requested through the Economic Development Advisory Board. However, 5/3 Bank will still provide loan review and oversight. Due to the timing of project construction, this loan request did not initiate through the Development Services Committee.
Financial Impact
Funds are available for this loan in the Revolving Loan Fund Reserve.
Recommended Action/Motion
I move to approve a loan for Orland Park Bakery in the amount of $100,000 for their expansion/relocation project at 14850 S. LaGrange Road in Orland Park, Il, as outlined above and authorize the Village Manager to execute the necessary legal/closing documents.