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HomeMy WebLinkAbout02-23-2012 Council Economic Development CommitteeAGENDA City Council Economic Development Committee Thursday, February 23, 2012 8:00 a.m. HeRing Conference Room City Hall 1. Call to Order 2. Welcome and Introductions 3. Consider approval of the January 17, 2012 Economic Development Committee meeting minutes 4. Consider request for CDBG Economic Development Loan from Trumpet Blossom Cafe 5. Staff time 6. Committee time 7. Other business PRELIMINARY MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE JANUARY 17, 2012 HELLING CONFERENCE ROOM, 8:00 A.M. Members Present: Matt Hayek, Susan Mims, Michelle Payne Staff Present: Wendy Ford, Jeff Davidson, Tom Markus, Geoff Fruin Others Present: Joe Raso w/ICAD; Mike Noonan, Gigi Wood, Tara Bannow RECOMMENDATIONS TO COUNCIL: Hayek moved to recommend to the City Council ICAD's request for increased funding as discussed. Payne seconded the motion. Motion carried 3-0. CALL MEETING TO ORDER: The meeting was called to order by Jeff Davidson at 8:15 a.m. WELCOME AND INTRODUCTIONS: People in attendance introduced themselves. CONSIDER SELECTION OF COMMITTEE CHAIRPERSON: Davidson stated that the first order of duty for the committee was to select a chairperson. Hayek moved to nominate Susan Mims, Payne seconded. Motion carried 3-0. CONSIDER APPROVAL OF THE MINUTES OF THE DECEMBER 2, 2011, ECONOMIC DEVELOPMENT COMMITTEE MEETING: Chairperson Mims asked if there were any changes to the December 2, 2011, Economic Development meeting minutes. Hayek moved to accept the December 2, 2011, meeting minutes as presented. Payne seconded the motion. Motion carried 3-0. CONSIDER REQUEST FOR CAPITAL CAMPAIGN FUNDING FROM IOWA CITY AREA DEVELOPMENT GROUP: Joe Raso with ICAD spoke to Members regarding ICAD's request for capital campaign funds. He referred to his memo that was in the Members' packet for this meeting, giving some brief history of ICAD's relationship with the City. Raso continued, noting what is happening in the region. He highlighted a couple of items from his memo, noting for the Members some of the annual reports that ICAD prepares. Giving further explanation to the measures used in preparing these reports, Raso noted that Iowa City ranks high in many categories. With an emphasis on the tightening labor market, Raso noted that local employers are seeing a drop in the availability of skilled labor. Members asked questions of Raso regarding this information. He described the various ways that ICAD attempts to draw the needed workforce to the area. Working with the University of Iowa alumni and current students is just one way to increase interest in the area. Raso continued about why Iowa City should support ICAD's services. He spoke briefly about the local economy, noting that tourism, agriculture, the University, and interstate commerce are what make up the local economy. ICAD works with all of these entities to create a strong economy. Raso then turned to a draft of ICAD's 20-year vision plan. He briefly outlined what ICAD has done in the past, and what they plan to do in the future, by creating this 20-year plan. Raso continued, noting ICAD's budget goal and how their vision plan fits into the budget. The discussion then turned to the request for continued financial support from the City. Raso reminded Members that the City has been funding ICAD $100,000 annually for the past six years. He explained they are requesting that Iowa City maintain that annual funding amount for another five years and provide additional dollars over the course of the next 3 years of $100,000 to support the programming and unique entrepreneurial development efforts of the CoLab space downtown. Regarding the Co -Lab funding portion of their request, Raso explained ICAD's request of the City, noting a $50,000 request for the current fiscal year, and for the next two years, an additional $25,000 each year. This would take the City's commitment to ICAD from $500,000 over the next five years to a total of $600,000 over the next five years. As Raso noted again, these efforts help grow interstate commerce and help strengthen the local economy, of which the Co -lab project is an integral part. Hayek moved to recommend to the City Council ICAD's request for increased funding as discussed. Payne seconded the motion. Motion carried 3-0. STAFF TIME: Davidson noted that staff is working with a new development team on the Moss Green project off 1-80. Currently they are working on a Phase One plan. First, however, they need to do a traffic study for this area. Davidson further explained what the City's responsibility would be in this. He then responded to Members' questions regarding the new direction for this project. Another issue that Davidson brought up was in regards to the 'developers' roundtable' being formed to look at the various processes that must be gone through within the City. Markus noted that there are several areas such as this that are being reviewed currently. Davidson then noted that proposals will be coming in on the multi -use parking deck soon. COMMITTEE TIME: None. ADJOURNMENT: Payne moved to adjourn the meeting at 8:51 A.M. Hayek seconded the motion. Motion carried 3-0. Council Economic Development Committee ATTENDANCE RECORD 2012 TERM NAME EXP. Michelle 01/02/14 X Payne Matt 01/02/13 X Hayek Susan 01/02/13 X Mims Key: X = Present O = Absent O/E = Absent/Excused INITIAL REVIEW OF TRUMPET BLOSSOM CAFE WORKING CAPITAL Business Proposed: Katy Meyer, former co-owner of the Red Avocado, is requesting funds to start a new all vegan restaurant at 310 E. Prentiss St. (former Hideaway) that will offer familiar vegan food and also provide catering services. Red Avocado was forced to close when the building they leased was purchased and later demolished. The new location will have additional seating and have a small amount of non-food retail products available for purchase. The products will be in line with the emphasis of the restaurant — local, seasonal, hand -made, health -conscious and sustainable. The restaurant will host musicians, performers and lecturers on a weekly basis to provide entertainment and/or information that enhance the dining experience. Budget & Private Financial Contribution The applicant obtained a commercial loan with MidWestOne for $117,000. The loan is secured by a mortgage placed on a commercial property owned by a family member. The commercial loan is contingent upon a CDBG award of $35,000 or the maximum amount that is approved by the City. The owner will contribute $18,000 to be used to purchase assets for the business. Owner estimates that the total project cost to open and have sufficient working capital is $170,000. To partially secure the City's loan, staff recommends a UCC statement filed on all business assets and a personal lien placed on owner's vehicle (estimated value is $5,000). The owner requests $35,000 for working capital. Comprehensive Plan/CITY STEPS Plan The project does not require public infrastructure or rezoning. It is located in a CB-5 (central business support) zone. The project meets a CITY STEP's objective: fund the Economic Development fund annually to provide assistance to small businesses and micro -enterprises. Quality of Jobs The estimated annual payroll for the business is approximately $140,000. In addition to the owner, who qualifies as low -moderate income, 12 part time service workers (6.0 FTEs) are anticipated to be hired. No fringe benefits are paid. Economic Impact The proposed CDBG funds will provide a small, woman owned business with access to affordable working capital. Due to the bank's underwriting guidelines, CDBG assistance is required to obtain the commercial loan. Environmental/Community Involvement Red Avocado hosted benefit dinners and raised money for local organizations. The owner plans to continue this practice. February 2012 February 23, 2012 City Council Economic Development Committee Trumpet Blossom Cafe Staff Recommendation: Katy Meyer was the co-owner and chef at the Red Avocado for over six years. She has experience operating an all vegan restaurant. The owner will contribute $18,000 of her funds to the project and secured an $117,000 loan from a local lender. Owner anticipates sales of $435,000. In addition to the restaurant, the business will provide catering services for wedding and special events. The lender is comfortable with the projected sales that the owner anticipates in the proforma. The Small Business Development Center reviewed the business plan and projections. Due to the lender's underwriting criteria, the bank requires outside financing to mitigate the risk and provide sufficient working capital. The location is favorable and anticipated revenue and cash flow generated will exceed debt service. The owner has negotiated a 5 year lease. Staff funding recommendation: $35,000 loan with a maximum term of seven years at 0% interest for working capital. Staff recommends placing a personal lien on owner's vehicle and filing a UCC statement on all business assets to partially secure the loan. Staff recommends as a condition of the award the business receives technical assistance as recommended by the Small Business Development Center. February 2012 Iowa City CDBG Economic Development Funds Application for Business Financial Assistance Business Requesting Financial Assistance: Individual Katy Meyer Home Address 814 N. Dodge St. Iowa City IA 52245 Name of Applicant Business Trumpet Blossom Cafe Full Street Address of Business 310 E. Prentiss St. Iowa City IA 52240 Phone Number & Email Address 319-594-4874 meyerkatyann@gmail.com DUNS Number (If awarded funds, applicant must obtain a DUNS number): Type of Business restaurant & catering Date Business Established pending Bank of Business Account and Address (if applicable): pending with Midwest One 102 S. Clinton St. Iowa City IA 52240 NOTE: The City will not provide assistance in situations where it is determined that any repre- sentation, warranty or statement made in connection with this application is incorrect, false, misleading or erroneous in any material respect. If assistance has already been provided by the City prior to discovery of the incorrect, false or misleading representation, the City may initiate legal action to recover City funds. Revised 11/15/06 Section 1: bescription of Business and Proposed Project 1.1. Describe the proposed "project" (for example, company relocation, building expansion, remodeling, new product line, number of new jobs, amount of investment in machinery and equipment) and the expected benefits it will receive from the financial assistance requested: Relocation of vegan restaurant, renovation of interior, approximately 12 new jobs created, around $140,000 invested in furniture, fixtures, and equipment. Financial assistance needed to attain bank loan. Plan to create a new space for community gathering and enjoyment and to enhance the neighborhood. 1.2. Provide a brief history of your company: I was co-owner of The Red Avocado for over six years. I plan to continue under a new name but with the same emphases —local, sustainable, organic food. I will carry on with the support given to The Red Avocado and will gain new customers through broader appeal. 1.3. Describe the organizational structure of the business: The restaurant will operate as an LLC and I will be the sole member. 1.4. Management (Proprietor, partners, officers, directors, all holders of outstanding stock, 100% of ownership must be shown) Name & Position/Title Complete Address % Owned Katy Meyer, chef/owner 814 N. Dodge St. Iowa City IA 52245 100% Attach a brief description similar to a resume of the education, technical and business background for all the people listed under Management. 1.5. Will the project involve a transfer of operations or jobs from any other Iowa City or Johnson County facility or replace operations or jobs currently being provided by another Iowa City or Johnson County company? If yes, please indicate the facility(s) and/or company(s) affected. No. Revised 11/15/06 Section 2: Financial Contributions to the Proposed Project 2.1. Use of Proceeds USE OF Proceeds Activity Loan Requested (Enter gross dollar amount rounded to the nearest hundreds) Land acquisition $ New Construction/Expansion Repair $ Acquisition and/or Repair of Machinery and Equipment $ Inventory Purchase $ 10,000. Working Capital (including accounts payable) $ 10,000. Acquisition of Existing Business $ All Other (start-up costs; remodeling) $ 15,000. Total Loan Requested (All Sources): $170,000 2.2. Terms of Proposed Financing (Sources) Monthly Proposed Financing Amount Payment Type Rate Rate Term Financial Institution: Midwest One $ 117,000. 1750. Dir. loan 6% 7 yrs Financial Institution : $ Other: Personal Equity $ 18,000. Iowa City CDBG Economic Dev. Fund $ 36,000 450. Dir. loan 0% 7 yrs TOTAL: $170,000 2200. (')For example: forgivable loan, direct loan, or grant. 2.3. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. If the applicant did not apply for a loan through a private financial institution, please explain why. If denied assistance through a financial institution, please attach the letter of denial. I am applying for assistance so I can qualify for a commercial loan from Midwest One. The Red Avocado had to close abruptly and I need help opening a quality vegan restaurant in Iowa City. Revised 11/15/06 2.4. Indicate the owner's contribution (cash, assets for the operation of the business, etc.) to this project. I am putting up $18,000. towards the asset purchase. 2.5. Identify all agencies or institutions involved in the project (financial, technical assistance, etc.) and what their involvement is: I am working on a commercial loan with Midwest One. 2.6. What type of security will the assisted business provide the City? If no security or less than the dollar amount requested is offered, an explanation must be provided. ❑ Corporate Guaranty ❑ UCC Financing Statement ❑ Irrevocable Letter of Credit ❑ Personal Guarantee ❑ Surety Bonds ❑ Mortgage on Real Estate ❑ Escrow Account x Other: any securities available after 1 st lien by bank Before execution of a CDBG agreement, if the collateral consists of machinery and equipment, inventory, or other, the applicant must provide an itemized list that contains serial and identification numbers for all articles that had an original value of greater than $5,000. Include a legal description of real estate offered as collateral. 2.7 If the City did not provide financial assistance, could the project proceed? No. The bank loan is contingent on the city providing financial assistance. Section 3: Jobs to Be Created/Retained Special Note: The Community Development Block Grant (CDBG) program requires that at least 51 % of the jobs created or retained must be held by or made available to low - moderate income persons. The business acknowledges that if it fails to create and/or retain the jobs identified below by the end of the project period and maintain them for a period of time (usually 12 months from the date of the award); it may be required to reimburse City funds for the employment shortfall. 3.1 If an existing business, how many employees are currently employed at your Iowa City location? Please attach a copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. n/a Revised 11/15/06 3.2 Complete the following chart identifying the number of jobs to be created and/or retained based on this specific project. Type of Job and Hourly Rate for Created and/or Retained Positions in First 12 Months of Project Award (please see attached Job Category Definitions) # of Jobs Created # of Jobs Retained Type of Job No. Hours Per Week Hourly Rate of Pay Fringe Benefits* 1 1 Officials & Managers Varies, 50-60 salary Professional Technicians Sales Office & Clerical Craft Wokers (Skilled) Operatives (semi -skilled) Laborers (unskilled) 12 12 Service Workers 15-35 4.35-8.50 *If fringe benefits are provided, please attach a description of all employee benefits provided by and paid for (in full or in part) by the business. 3.3 What is the estimated annual payroll for the new employees resulting from this project? $140,000 3.4 If an existing business, will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain why: n/a Section 4: Economic & Environmental Impact 4.1. What other Johnson County companies could be considered to be your competitors? There are no other vegan restaurants in the area. A few local restaurants offer fare that would have some of the same attributes —local & seasonal —places like Motley Cow, Devotay, and Leaf Kitchen. I aim to provide an experience that is currently unavailable. 4.2. Please describe the energy and resource efficiency programs, waste reduction, waste exchange, and recycling programs at your Iowa City operation. One of the main aspects of the business will be sustainability. Our operations will create as little waste as possible. We will recycle and compost everything we can and will use energy -efficient and environmentally -friendly materials whenever possible. We will locally -source as much product as possible year-round. Revised 11/15/06 Section 5: Community Involvement, Compliance with Law 5.1 In addition to your normal business activities, does your business contribute or have plans to contribute to the community through volunteer work, financial contributions, or through other means? Please describe. As The Red Avocado did, we will host benefit dinners & events to raise money for local and regional organizations. We also intend to be a space for local groups to gather. 5.2 Has the business been cited or found to violate any federal or state statute or regulation within the last five years (including, but not limited to environmental regulations, payroll taxes, Occupational Safety and Health Administration laws, Fair Labor Standards, the National Labor Relations Act, the Americans with Disabilities Act)? If yes, please explain the circumstances of the violation(s). n/a 5.3 Has the company or any officer of your company been involved in bankruptcy or insolvency proceedings during the past 7 years from the date of this application? If so, provide the details. No. 5.4 Are you or your business involved in any pending lawsuits? If yes, provide the case name of the lawsuit, docket number, and city and state where it is pending. M Section 6: Summary of Required Attachments Check off each attachment submitted. If not submitted, explain why. x l Business plan (if start-up business) I x l Balance Sheet (3 year historical if an existing business. Start-ups must provide a pro - forma balance sheet) x Profit and loss statements (3 year historical if an existing business, 3 year projection for start-ups) xj 12 month cash flow statement (if the business does not expect to turn profitable within the first 12 months, provide a cash flow statement extended to the year the business expects to turn profitable) [ ] Description of fringe benefits provided to employees, if applicable Revised 11/15/06 [ x ] Brief description of the education, technical and business background for all the persons listed under Management (Question #1.4) Revised 11/15/06 x j Please provide the social security numbers for all the persons listed under Management (Question #1.4) 323-70-9132 If an existing company, copy of the company's quarterly Iowa "Employer's Contribution and Payroll Report" for the most recent quarter. Construction loans only: Cost estimates for construction and a statement of the source of any additional funds Include a list of any machinery or equipment or other non -real estate assets to be purchased with the financial assistance and the cost of each item as quoted by the seller. Include the seller's name and address. Upon review of a submitted application, the City reserves the right to request additional information in order to assist the City with its evaluation of an application. Release of Information and Certification NOTE: Please read carefully before signing I hereby give permission to the City of Iowa City (the City) to research the company's history, make credit checks, contact the company's financial institution, and perform other related activities necessary for reasonable evaluation of this proposal. I understand that all information submitted to the City relating to this application is subject to the Open Records Law (1994 Iowa Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all repre- sentations, warranties or statements made or furnished to the City in connection with this application are true and correct in all material respects. I understand that it is a criminal violation under Iowa law to engage in deception and knowingly make, or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic development assistance from a state agency or political subdivision. If applicant is a roprietor or general partner, sign below. By: Date: y� % If applicant is a Corporation, sign below: Corporate Name and Seal Date M Signature of President Attested by: Signature of Corporate Secretary Revised 11/15/06 Business Plan for Trumpet Blossom Cafe February 9, 2012 Katy Meyer Executive Summary Trumpet Blossom Cafe is a casual full -service restaurant & caterer that offers familiar and delicious vegan food. It will be located at 310 E. Prentiss St. in Iowa City. Trumpet Blossom Cafe is an LLC with Katy Meyer as the sole member. The Market Iowa City and the surrounding area is home to a diverse population: students, young professionals, growing families, established families, empty -nesters, retirees. Trumpet Blossom Cafe will appeal to this broad audience by offering a number of dining options, including dine -in, carry -out (and catering). People will come for the quality and convenience of the food and will return not only for the food but also for the enjoyable environment. The restaurant will serve meals (including a kids' menu), snacks, drinks, and desserts and so will have a spectrum of dining experiences. There are no other vegan restaurants in Iowa City or the surrounding area. The competition will be other casual full -service restaurants within Iowa City that offer what the customer perceives as healthy options —places like Leaf Kitchen and Thai Flavors. Services and Products Trumpet Blossom Cafe fills a niche in Iowa, specifically Iowa City, as the only all -vegan restaurant and caterer. Its products offer the customer unmatched quality and seasonality. Excellent customer service is also a priority. The customer will enjoy the experience as much as the food. The menus are familiar and creative. People want to eat more healthfully yet don't want to sacrifice taste and enjoyment. Trumpet Blossom Cafe offers nutritious food that is pleasing to all the senses, enabling customers to feel they've had an excellent meal that also just happens to be quite good for them. The company will offer full -service catering, on and off -premise. Catering menus will contain the same high quality products that are offered at the restaurant. A small amount of non-food retail products will be available for purchase at the restaurant. These products will be in line with the emphases of the restaurant —local, seasonal, hand -made, health -conscious, sustainable. Musicians, performers, and lecturers will be invited to the restaurant on a weekly basis to provide entertainment and/or information that enhances the dining experience. These events will be scheduled ahead of time so that they can be advertised. 01 Competitive Edge Simply put, Trumpet Blossom Cafe will offer customers a quality experience they will not get anywhere else. This will encourage a wide range of people to walk through the door and return as frequently as possible. Management Katy Meyer was co-owner and chef at The Red Avocado for over six years. Katy brings the knowledge, passion, and willingness to put forth the effort that is required to provide the public with wholesome, delicious vegan food. Mission Trumpet Blossom CaWs mission is to become a destination for local and out-of-town customers seeking a casual and unique dining experience. This will be achieved by filling a niche with regards to menu, service, and overall experience. Keys to Success Trumpet Blossom Cafe will not compromise on quality of product or customer service. It will treat the food, staff, and customers with respect and dignity. Customers are becoming more aware of the importance of certain aspects of their food: local, organic, plant -based choices are becoming more common and Trumpet Blossom Cafe will offer products encompassing all of those choices. The company will maintain a tight handle on the financial realities of the business. Company Summary Trumpet Blossom Cafe is a new restaurant that will purchase the assets and lease of an existing bar & grill in Iowa City. It has been formed as an LLC, the founder and sole . member is Katy Meyer. Trumpet Blossom Cafd will purchase the assets & lease of The Hideaway. This is an ideal situation because it enables the company to make a few changes to the interior, change the name and the menu, and then open for business without the hassle of finding a space, building it out, and then acquiring equipment and furniture suited to the physical space. People are accustomed to the space housing an eating establishment which aids in the objective of getting the, word out about the new business. Marketing Strategy Trumpet Blossom Cafe will ride the wave of recent press and attention surrounding the closing of The Red Avocado. Thousands of people expressed concern, sadness, and outrage that Iowa City's vegan restaurant was forced to close, leaving a hole in the local landscape of dining options. Trumpet Blossom Cafe will fill this void. Some start-up advertising will be done by a friend, Kathryn Musilek, who owns & operates a PR firm, Shark Party Media. She will assist and advise on written materials including the announcement of the opening dates and events to raise local and regional awareness through connections in the media including: radio, daily and weekly newspapers and blogs. Trumpet Blossom Cafe will explore ongoing local advertising options but will rely heavily on word-of-mouth and internet presence via a customized website and social media outlets. Personnel Plan Katy: full-time chef, kitchen manager 5 part-time kitchen employees: line cooks, prep cooks, dishwashers Front house manager: full-time server/host/bartender 7 part-time front house employees: servers, hosts, bartenders Ross Meyer: part-time bookkeeping and other office duties Hours of Operation Tuesday through Sunday 11 am to 10 pm. offering lunch Tuesday -Sunday, additional brunch menu Saturdays and Sundays happy hour Tuesday -Sunday 2 pm to 5 pm dinner Tuesday -Sunday 5 pm to 10 pm Hours may expand if business demands and if company can support it. 2 Sales Revenue Forecast in-house dining & bar (I have deflated these numbers somewhat in my charted projections in order to take a conservative position.) Tuesday lunch $400 dinner $1000 Wednesday lunch $400 dinner $1000 Thursday lunch $400 dinner $1000 Friday lunch $500 dinner $1500 Saturday lunch/brunch $1000 dinner $1500 Sunday lunch/brunch $800 dinner $500 weekly total $10,000 lunch/brunch $3500 dinner$6500 estimated details: lunch Tues, Wed, Thurs, Fri 25-30 covers @ $15-20 per = $375-600 lunch/brunch Sat & Sun 40-60 covers @ $15-20 per = $600-1200 dinner Tues, Wed, Thurs 40-50 covers @ $25 per = $1000-1250 dinner Fri & Sat 50-100 covers @ $25-40 per = $1250-4000 dinner Sun 20 covers @ $25 per = $500 happy hour business would add approx. $850/week avg 5-15 covers @ $10-15 per = $50-225/day, $300-1350/week Catering & special events In addition to normal service sales, catering services will be a portion of the business. The company can expect to cater at least one wedding per month May, June, July, August, and September. The company will charge around $2000 for each event. That's an additional $10,000/year on weddings. Trumpet Blossom Cafe could also host at least 1-2 other special events in-house each month which would bring in around $1,500-3000 each. That's another $18,000-36,000/year on in-house events. A standard catering menu will be offered for small or large luncheons, dinners, etc to be prepared in-house and picked up or delivered. The company can expect to bring in $200-1000 each month with these caterings. That's an extra $2400-12,000/year on standard catering services. The company can project adding around $30,000-60,000/year from caterings & special events. There are several catering events for summer and fall 2012 that were booked through The Red Avocado that can be executed by Trumpet Blossom Cafe. rel Startup Expenses Trumpet Blossom Cafe Sources of Capital Owners' Investment (name and percent ownership) Katy Meyer, 100% owner $ 18,000 Other investor - Other investor - Other investor - Total Investment $ 18,000 Bank Loans Midwest One $ 117,000 Bank 2 - Bank 3 - Bank 4 - Total Bank Loans $ 117,000 Other Loans CDBG financing $ 35,000 Source 2 - Total Other Loans $ 35,000 Startup Expenses Buildings/Real Estate Purchase $ - Construction - Remodeling 900 Other - Total Buildings/Real Estate $ 900 Leasehold Improvements wall coverings $ 2,000 paint 1,000 Item 3 - Item 4 - Total Leasehold Improvements $ 3,000 Capital Equipment List Furniture $ 137,500 Equipment (incl. in line 1) - Fixtures (incl. in line 1) - Machinery - Other - Total Capital Equipment $ 137,500 Location and Admin Expenses Rental $ - Utility deposits 100 Legal and accounting fees 1,000 Prepaid insurance 500 0 Pre -opening salaries 3,000 Other - Total Location and Admin Expenses $ 4,600 Opening Inventory food $ 6,000 alcohol 3,500 retail 500 Category 4 - Category 5 - Total Inventory $ 10,000 Advertising and Promotional Expenses Advertising $ 1,500 Signage 500 Printing 200 Travel/entertainment - Other/additional categories - Total Advertising/Promotional Expenses $ 2,200 Other Expenses misc. $ 200 Other expense 2 - Total Other Expenses $ 200 Reserve for Contingencies $ 1,000 Workinq Capital $ 10,000 Summary Statement Sources of Capital Owners' and other investments $ 18,000 Bank loans 117,000 Other loans 35,000 Total Source of Funds $ 170,000 Startup Expenses Buildings/real estate $ 900 Leasehold improvements 3,000 Capital equipment 137,500 Location/administration expenses 4,600 Opening inventory 10,000 Advertising/promotional expenses 2,200 Other expenses 200 Contingency fund 1,000 Working capital 10,000 Total Startup Expenses $ 169,400 Security and Collateral for Loan Proposal Collateral for Loans Value Real estate $ - assets purchased 137,500 Owners Katy Meyer Loan Guarantors (other than owners) Ann Dilenbeck Description Balance Sheet (Projected) Trumpet Blossom Cafe Beginning Projected as of 5/1/2012 as of 4/1/2013 Assets Current Assets Cash in bank $ 11,500 $ 5,000 Accounts receivable - - Inventory 12,000 12,000 Prepaid expenses 5,000 - Other current assets - - Total Current Assets $ 28,500 $ 17,000 Fixed Assets Machinery & equipment $ 57,500 $ 57,500 Furniture & fixtures 80,000 80,000 Leasehold improvements 4,000 3,000 Land & buildings - - Other fixed assets (LESS accumulated (10,000) Total Fixed Assets (net of $ 141,500 $ 130,500 Other Assets Intangibles $ - $ - Deposits 500 Goodwill - Other Total Other Assets $ $ TOTAL Assets -$ 176,,U6U -$T47 5i3b� Liabilities and Equity Current Liabilities Accounts payable $ 3,000 Interest payable - Taxes payable 1,500 Notes, short-term (due within 12 - - Current part, long-term debt 2,200 2,200 Other current liabilities - - Total Current Liabilities $ 2,200 $ 6,700 Long-term Debt Bank loans payable $ 152,000 $ 125,000 Notes payable to stockholders - - LESS: Short-term portion (2,200) (2,200) Other long term debt - - Total Long-term Debt $ 149,800 $ 122,800 Total Liabilities $ iSNUU $ 12u,buu Owners' Equity Invested capital $ 18,000 $ 18,000 Retained earnings - beginning - - Retained earnings - current - - Total Owners' Equity $ 18,000 $ 18,000 Total Liabilities & Equity \° \° \ 0', \ 0', \ 0 \ \ 0 0 \° 0, \ \ \ \ \ \ \ \° 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O 0o N M N CM Ln 0) 00 00 't 0o � O � LO 0 0 (M O Ln Lq — (O N LO N m qt M O) M N I- O � co 0) 0) cM O 00 — qT r- 0 0 0 0 0 0 Il- O N O O O N r M O N I- M (o O O O O O-O 0 0 0 0 0 0 0 0 0 ' 0 0 0 0 0 O O O ' O C LO O LO O O O 0 O O O O O O O O O O O O LL) O O O 0 N MOM OONfl-NOO000000 OOOOM 0(OIT Nt (O O (O N 00 1- N � U) N N N— N cM cM L1) O O M M 00 V V N Ln f- N O .- M I- M cM LO M M 69 tti EA 64 6f3 \° \° \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \° \° 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O (o W N U) N LO N N 00 00 N O N M 0 0) N O CO r- r- (O N LO N O LO It� M Ln M 0 M O O M O 00 � 4� 0 0 0— 0 0 00 O N O O O CM N N LO O N f- (M (O Cl) CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0' 0 0 0 0 0 0 0 0' O C O O O O O O O O O O O O O O O 0 0 1- 0 tl- M O M cM N LO O LO O O N Ln N O LO O O 00 O 0) 0) O LO O Ln m IT Ln LO 00 00 O O O 1- N 1 Ln N N N 1- N cM M Ln O O N f Ln N N I-M`d' 0400 N N N 19T ('M r- M 69 69 b9 Efi Ef3 0--ft% L w� `v o 0 0 0 0, 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 o 0 0 0 0 0 0 0 0 o o O 'T (O d' q' 00 � 00 Ul L(') (O (o O O O LO O I- Lt) O I- N T7 N N 't N Lc) (O tF ti (31 O 0) B O O (o O OD - M Cl 0 0 0 0 M O N 0 0 0 MN N M N I� 0 C O N OOO OO O LO 00000000 ' 0000LO LOOLn ' LO O O O 00 O N O 0 0 0 0 0 0 0 O O O O N I l- O I,- 1- N 000 00 N ON O qq 0000000) 0) OI- 00) 000 0 L6 Ln O 00 N 1 N LL) N N � N M (M Ln 00 (3) 0) O q�i (O (o � M N 00 N 69 69 d} 6c} t q V% cu (n cu O y H C) U cc O Q N L > Ci U K C` Q V 0 > �- Z c� (D co m _.1 (o v�i p c O m N C a) toN c 'a C"O y G d .r W o d o N m w coi a�i Z '�-o �` c�a c 2 r c pp K Q 3 is o o 4)w (a mrn mo �- om c C s,� ° E c dG-0 wn+ W0a � fiC (n daaLv aoc�xt n > 0 a a) d -� a L ema o m cXoa m o co m�-�o -W p m d 3 a H NU0 0 0F-M S- S000H z =z0Q Cash Flow 12 months Trumpet BlossomCaf6 Fiscal Year Begins: Apr-12 Item EST Apr•12 May-12 Jun-12 f Jul-12 Aug-0Total Sap-12 f Oct-1 Nov-12 DecDee-12 Jan-13 : Feb 13 Mar-13 EST CashHand (beginning of i 2.910 10,325, 8,425( 7,105, 8,295: 8,4551 11,035 12,225 9,3151 8,465� 6.755' 7785, month)) 1_ _.. CASH�R�CEIP33 , Cash Sales (including catering) ! 38,000 35,000 36,000 38,000 37,000 41,000 38.000 33,000 35,000, 33,000 38 DDO 35,000 Collections I'm CR accounts Loan/ other cash inj t 170,000 j t TOTAL CASH RECEIPTS 170,000 38,000 35,000 36.000 38,DDO. 37,000 : 411.0001 38 000 33.000 35.000 33 Dg0 36 ODO 35,000 Total Cash Available (before 170,000 40,910 45,325� 44,425j 45,105 45,295'' 49,4551 49.035 _ 45,225 44 315` 41,465: m 42,755�� 42,785 .cash out) ( - , Ckij pAIIIOUt. Purchases food 6,500 3,D00• 6,500 7.000� 7DOO 7000 8,000, 7,500 6,500 5500{ 5,500 5500 6,000i _ Purchases alcohol i 3,000 2,000 3,500 3,500, 3,000 3,000 3,5001 3,000 3000 3,500! 3,D00 3.000' 3,000{ Purchases retail 1 500 50 100, 50 50 100 50 50 100i 50 50. 501 Gross wages 3,000 14,DD0 15,000, 15,DO0 15,000 15,D00 _100 15,0001 15,000 15,000 15000, 15.000- 15.000, 15,DOOj Payroll expenses 300 1,400 1.500 1,500! 1.500 1 5D0 1,500� 1,500 1,500 1 500i 1,500 1,500. 1,500 Outside services (trash pick-up) I 100 100 100 100� 100 1D0 100! 100, iDO 10W 100 1D0, 1001 Supplies 375 160 150 150, 150 150 1501 150 150 1501 150, 150 150E .Repairs & maintenance too 100 100 100 100 100; 100{ 100 100 100E 100 100 1D0� Advertising f 2,540 375 300 250' 200: 200 200' 200 400 2501 20O` 200' 2001 Car, delivery &travel 200 200:' 2001 200 200 200! 200 2D0 200' 200 2D0 2001 Accounting& legal ' 1,000 50= W _ 501 50, 50 501 50 50 50' 50- 250r 50E Rent i 3.500 3,500: 3,5001 3,500 31500 3.500 3,500 3,500 3,500! 3 500 i 3,500 3,5001 Telephone r 150 150 150: 150 ! ' 150 150, 1501 150 150 150� 150 150' 150, Utilities 1,000 1,000 1000 1,0D0! 1,000 1,000 1,000i 1,000 1000 1000 1,000.. 1,000, 1,000�" Insurance 500 3251 325 325, 325,; 325 325 325 325 3251 325-. 325 325 Taxes (real estate, etc.) - ! Interest 325 325 325 325j 325- 325. 3251 325 325 325' 325 325 3251. Other (merchant services) 760 700. 720}} 760 740 820' 760 660 700., 660- 720 700 Other (catering equip. rentals) ' 500 1,000; __.._L__ 1,0001 1,000 1.000 1.0001 500 500 1,OOOj 500: .._._.._� 5007 s _..... 5O01 Other ! !. Miscellaneous ( 500 400 200, 200{ 200 200 200E 2D0 200 200,. 200, 200 200 SUBTOTAL 19.890, 28,385, 34,7D0. 35,120; 34,610 34640 36,2201 34,610 33,710 33650E 32510, 32,770 33,050� __.. ._ Loan principal payment _ j 2,2D0 2,200 .. 2,2DO 2 2001 2,200 2,200 2,212.. � .._... . 2,200 _. .._. 2 2001 2 200!, 2,200 2.200, 2,2001 Capital purchase (specify) 137,500i ! Other startup coats 7,500 Reserve and/or Escrow Owners' Withdrawal ;TOTAL CASH PAID OUT 167,090 30,585 36,900: 37,320E 36,810! WSW 38,420� 38AM 35,9W 35,850E 34,710: 34,970 35,2501 Cash Position (end of month) i 2,910 10,326' 8425 7,1051 8,295 8,455 11,0351 12,225 9315 8,465E 6,755` 7,785 7,535� j Katy Meyer's relevant experience: I have worked in the food -service industry for 17 years; every job I've had has involved working with food. Shortly after I moved to Iowa City I got a job at The Cottage and worked in every position (catering, deli, espresso, bakery, delivery, supervisory) throughout my four -and -a -half years there. During my last year at The Cottage I also worked at The Red Avocado and worked my way up from dishwasher to cook. After I graduated from the University in 2005, I became an owner of. The Red Avocado. Since then I have had a passion for creating beautiful, delicious food that is responsibly grown and gentle on the environment. My focus has always been to provide outstanding meals and to connect with the people I feed by nourishing them in the best way possible. My responsibilities at The Red Avocado included menu planning; inventory control & ordering; cooking; food prep; dishwashing; cleaning; planning small & large catering events; working with several local, regional, and national vendors; scheduling; managing and supervising employees. I also waited tables, hosted, and bartended for certain periods when it was needed. I also feel I benefit from my experience of obtaining a bachelor's degree from the University of Iowa. Graduating from college takes determination, attention to detail and a solid sense of time -management. During my studies of English and literature I excelled at expressing myself clearly and genuinely through my course work. I believe I carry this strength into my career with food, personnel, and the public. MUSIC ARTS I CULTURE COMMUNITY CALENDAR .4A- y,; FEBRUARY 2012 WWW.LITTLEVILLAGEMAG.COM !� aga pine . Iowa i e t ;.o 3 Rz EitAfC ��4C) :M � i li• �'nierc�et'�� a �� �'' t : S Wk�'F MIM h y zi ar A THE RAZERS' CHOOSING YOUR FEBRIUARY LOVES EDGE PAGES-13 DESTINY PAGE 1G THE ARTS PAGE 2�-31 �.,� , . as A Pictorial Salute a ute to a Local Food Icon e_,rc::Q, n the midst of this season of affection, it is with regretful hearts that we commemorate the closing of one of Iowa City's most beloved eateries, The Red Avocado. As we re- flect on the loss of our premier vegan/vegetarian/organic sanctuary, we think back on summer hours spent lounging on the patio, sangria in hand, Dustin Busch strumming the mood. Or huddling in the entryway mid -winter, stamping snow off our boots and greet- ing our neighbors, anticipating a fantastic meal in the company of good friends. The Red Avocado transformed a damp, cinder -block -walled basement into a unique, inviting space. From its cramped kitchen such magic emerged --the fruits of our local farms transformed into high culinary art, each plate garnished with an elegant swirl of sauce, every sprig of cilantro carefully placed. It was a place that promoted the local in every possible way, from photography and pottery lining the walls to live music performances both indoors and out. The quirky basement location became a community of friends and foodies. It was a place to gather, a place where your neighbors sat so close you may as well be having dinner together ... and sometimes you inadvertently did. As we spoke to customers on one of the restaurant's final days in business, a consis- tent appreciation emerged for the transformative food experiences provided by The Red Avocado over the years. To Dave, Katy and Rachael, this message remains: Wherever you go, those of us who love your food, and respect your mission, will follow. FEBRUARY 2012 1 LITTLE VILLAGE Find more images and reflec- tions online at: We live in a culture where restaurant owners un- abashedly serve large portions of unhealthy foods which promote many of the diseases that afflict David Burt stands alone (and has been successful) in pro- viding food that not only does not promote these conditions but can actually reverse them. Carol Throckmorton RDAD & Customer I DON'T EVEN THINK OF THIS AS A VEGETARIAN OR VEGAN RESTAURANT; I THINK OF THIS AS A GOURMET GEM. — ELIZABETH CUMMINGS, CUSTOMER EVERYTHING ELSE TASTES BAD AFTER YOU EAT HERE. DARCY BURNETT, BARISTA To me it's part of what makes Iowa City unique, it's part of what makes downtown Iowa City the attraction that it is. It's part of the history as far as I'm concerned and it's a damn shame that we're going to lose it. Kenn Bowen, Customer Dawn Frary owns the Dewey Street Photo Company and enjoys feeding mice to injured owls as a volunteer at the Macbride Raptor Project. Stephanie Catlett is an Iowa City writer, just like everybody else.