Tc Salon Grant Application

4coxrer

LAUREN K. GIGUERE Deputy Director Community and Economic Development

Allentown

610.439.5965 Fax 610.439.5947 [email protected]

July 31, 2008

Mr. Dennis Yablonsky Secretary Pennsylvania Department of Community and Economic Development Commonwealth Keystone Building 400 North Street, 4 th Floor Harrisburg, PA 17120-0225 RE:

19th Street Anchor Building Project

Dear Mr. Yablonsky: Attached to this letter you will find the full application for funding from the Pennsylvania Community and Economic Development for the 19 th Street Anchor Building Project in Allentown, PA. The grant request is for $250,000.00. Please feel free to contact me at any time regarding this application. I can be reached at 610-4395965 or my email address is [email protected] . Thank you for your consideration. Sincerely,

Lauren Giguere Deputy Director

City Hall $ 435 Hamilton Street $ Allentown, PA 18101-1699

COMMUNITY AND ECONOMIC DEVELOPMENT Single Application for Assistance Web Application #:

7044066

This web application has been submitted to: The Department of Community Economic Development (DCED) Please Read and Sign this page, ATTACH All supporting documentation, and MAIL to: Pennsylvania Department Of Community and Economic Development Commomwealth Keystone Building Attn: Customer Service Center 400 North Street, 4th Floor Harrisburg, PA 17120-0225 I hereby certify that all information contained in the single application and supporting materials submitted to DCED via the internet, Web Application # and its attachments are true and correct 7044066 and accurately represent the status and economic condition of the Applicant. If I knowingly make a false statement or overvalue a security to obtain a grant and/or loan from Commonwealth of Pennsylvania, I may be subject to crLm alprosecution. Signature:

L.>

Date: 2

31-0P

Title: Mayor, City of Allentown

Print Name: Mayor Ed Pawlowski Representing: City of Allentown Address: Allentown

PA

18101-1699

If this application is being submitted on behalf of another entity, a certification is also required for that entity.

Signature: Print Name:

Title:

Corporate Submissions Only:

Attested by:

(Signature of Corporate Secretary)

"I understand that in order to facilitate the submission of additional applications for this project on the Internet, • information from this application (limited to the profile, project summary and site employment/projected jobs data) will be available to DCED Authorized Service Providers on the DCED Single Application web site, unless I have checked here.

The Department of Community and Economic Development reserves the right to accept or reject any or all applications submitted on the Single Application for Assistance contingent upon available funding

sources and respective applicant eligibility.

JENNIFER L. MANN, MEMBER

COMMITTEES

1 32ND LEGISLATIVE DISTRICT ❑

527-E MAIN CAPITOL PO BOX 202132 HARRISBURG PA 17120-2132 PHONE (717) 705-1869 FAX: (717) 705-2087

DISTRICT OFFICE

FINANCE. MAJORITY VICE CHAIR CONSUMER AFFAIRS ENVIRONMENTAL RESOURCES

HOUSE OF REPRESENTATIVES COMMONWEALTH OF PENNSYLVANIA

AND ENERGY I NSURANCE POLICY TRANSPORTATION

HARRISBURG ❑

COMMISSIONS & CAUCUSES

1 227 LIBERTY STREET SUITE 202 ALLENTOWN PA 18102 PHONE. (610) 821-5577 FAX (610) 821-6325

TEAM PENNSYLVANIA FOUNDATION, BOARD MEMBER PHEAA, BOARD MEMBER ARTHRITIS CAUCUS. CO-CHAIR COMMUNITY COLLEGE CAUCUS. CO-CHAIR

.

E - MAIL: ji mannbpahouse.nel

July 31, 2008 The Honorable Dennis Yablonsky, Secretary PA Department of Community & Economic Development Commonwealth Keystone Building, 4 Floor Harrisburg, PA 17120 111

Dear Secretary Yablonsky: It has come to my attention that the City of Allentown is appliying for a grant in the amount of $250,000 for the acquisition of the former Shanty Resturant property in the City's Theatre District. I would like to take this opportunity to offer my wholehearted support for this project, and ask that this request be funded in full. This is a key property in the revitalization efforts for Allentown's Theatre District, which runs along the 19 Street Corridor. Furthermore, the City has already identified an investor for this property: TC Salon. This business will be relocating from South Whitehall Township and expanding their operation; the result of which will be the creation of 29 full time jobs and 24 part time positions. 111

The clear economic development, job creation and urban revitalization that will result from this project makes this a safe and wise investment by the Commonwealth. Thank you for considering my opinion in this matter. If you have any questions about my support of this project, please do not hesitate to contact me.

enni er L. Mann State Representative l 32" Legislative District d

J LM/alk

1 6TH DISTRICT

COMMITTEES

PATRICK M. BROWNE FINANCE, CHAIRMAN SENATE BOX 203016

URBAN AFFAIRS & HOUSING, VICE CHAIRMAN APPROPRIATIONS

459 MAIN CAPITOL BUILDING

EDUCATION

HARRISBURG, PA 17120

JUDICIARY

( 717) 787-1349

POLICY

FAX: (717) 772-3458

[email protected] www.senatorbrowne.com

E-MAIL:

PUBLIC EMPLOYEE RETIREMENT COMMISSION PA MINORITY BUSINESS DEVELOPMENT AUTHORITY LEGISLATIVE AUDIT ADVISORY COMMISSION

g)r.ntrir of Veniwilluttnia

July 30, 2008 Secretary Dennis Yablonsky Department of Community & Economic Development 4th Floor, Commonwealth Keystone Building Harrisburg, PA 17120 Dear Secretary Yablonsky: I am writing in support of the City of Allentown's request for $250,000 to be used toward a total investment of $1,075,000 for the acquisition of a specific property on 19` 1' Street. It is my further understanding the new owner of the property, Mr. Frank Shipman, will be applying for an SBA 504 loan through the Lehigh Valley Economic Development Corporation. Mr. Shipman is in the process of acquiring the former Shanty restaurant and will move his highly successful business, TC Salon, from South Whitehall to the larger facility in the city. By so doing, Mr. Shipman estimates that he will create 10 full-time jobs for a total of 29 and 14 part-time jobs for a total of 24. He further estimates that by moving TC Salon to 19 th Street, gross revenues will increase by 32% increase. TC Salon is a locally, nationally and internationally recognized salon and day spa. We are very fortunate that Mr. Shipman has chosen to relocate his business to Allentown and most importantly, I believe that his business will perfectly compliment and enhance the 19 th Street corridor. Given Mr. Shipman's track record of success, I am proud to support his latest endeavor. Please let me know if I can be of further assistance to advocate for the approval of the City of Allentown's request for funding this vital project. Sincerely,

Patrick M. Browne Senator 16` h District DISTRICT OFFICES P.O. Box 16. Saylorsburg. PA 18353 • (570) 402-1499 • FAX (570) 402-0746 801 Hamilton Street. Allentown. PA 18101 • (610) 821-8468 • FAX (610) 821-6798 8330 Schantz Road. l3reinigsvillc. PA 18031 • (610) 366-2327 • FAX (610) 366-2320 5330-Nor-Bath Boulevard. Northampton. PA 18067 • (610) 502-1567 • FAX (610) 502-1570

Application Number 7044066

PA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT Single Application for Assistance I. PROFILES Applicant/Sponsor Name: CEO Title:

City of Allentown

CEO:

Mayor Ed Pawlowski 435 Hamilton Street

Mayor of Allentown

Address:

City:

Allentown

State:

PA

Zip:

18101-1699

FEIN:

236003116

NAICS Code:

9261

C.- For-Profit Corporation 4' Government

C . Non-Profit Corporation

.

C Partnership C Sole Proprietorship

Contact Name:

Lauren K. Giguere

Title:

Deputy Director, Allentown DCED

Fax:

(610) 439-5964

SAP Vendor #:

Email:

[email protected]

PA Revenue Tax Box # 139818445

Phone:

1(610) 439-5965

Internet Access:

11 77523-

IR Yes

I

—

No

Business Specifics Current # of Full-time Employees:

r Yes x

Minority Owned:

Pennsylvania

19

Worldwide

No

r

-

Limited Liability Corp

Total Sales $

X S Corporation

r

1

Woman Owned:

If yes, ethnicity (optional):

I- Sole Proprietorship

0

P

Partnership

F

Yes

X No

C Corporation

Limited Liability Partnership

1,500,000

Total Export Sales $ 0

R&D Investment (% of budget) 0 Employee Trng. Investment (% of budget)

1

Company/Occupant Name:

TC Salon

CEO:

Frank Shipman

CEO Title:

President and CEO

Address:

61 W. Walnut Street

City:

Bethlehem

State:

PA

1 8018-5708

FEIN:

232820113

UC#

39-32618

Zip: NAICS Code:

8129

Contact Name:

Frank Shipman

Title:

President and CEO

Phone:

(610) 393-9900

Fax:

(610) 865-3308

.E-mail:

[email protected]

Internet Access:

V( Yes

1--

No

Beneficial Owner/Developer

Name:

Address:

City:

State:

Zip:

FEIN: 1

V. INDICATE BUDGET CATEGORY OF FINANCIAL ASSISTANCE REQUESTED Check all appropriate boxes i .! Acquisition

111

Infrastructure / Site Prep

Li General Construction

❑

Machinery and Equipment

L.1 Operating Costs/Working Capital El Related Costs EJ Other Costs

VI. HOW WILL THE ASSISTANCE BE USED? Check all appro r riate boxes

rk; Community

❑

Li Recreation

Environmental

Development/Revitalization 1 . 1 Community Services

L-i) Export - Domestic Trade (out of PA)

,_ . _1 Crime Prevention

❑

IX) Economic L

❑ Housing

❑ Tax Credits ❑ Technology Development

Export - International Trade (out of USA)

❑ Tourism Promotion

Development/Revitalization

0

Education

❑

Planning

VII. PROJECT BUDGET Include all sources of funds and project costs. (Include monies not financed with DCED funds.) Sources Type of Financial Assistance

Owner/Developer

DCED

DCED

Private

0

0

Buildings

250,000

Subtotal

See page 9 • 10 for Budget 5 • 8

Total

SBA 504 loan

for Budget 1

State

-

8

ACQUISITION 0

0

395,000

430,000

1,075,000

250,000

395,000

430,000

New Construction

0

0

0

0

Renovations

0

450,000

300,000

750,000

Subtotal

0

450,000

300,000

0

0

0

0

0

0

0

0

0

0

0

0

Land

-

0

1,075,000

GENERAL CONSTRUCTION

0

750,000

INFRASTRUCTURE/ SITE PREPARATION Roads & Streets Parking Water/Sewer

3

PROJECT BUDGET continued Sources

DCED

Owner/Developer

Utilities

Total

SBA 504 loan

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

New Equipment Purchase

0

270,000

180,000

450,000

Used Equipment Purchase

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

270,000

180,000

0

0

0

0

Salaries & Fringe Benefits

0

0

0

0

Training & Technical Assistance

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Space Costs

0

0

0

0

Audit

0

0

0

0

Indirect Costs

0

0

0

0

Subtotal

0

0

0

Demolition Excavation/Grading Environmental Cleanup

, Subtotal

0

0

MACHINERY & EQUIPMENT

Upgrade Existing Installation/Building Modification Vehicles Subtotal

0

450,000

OPERATING COSTS/ WORKING CAPITAL Working Capital

Consumable Supplies Travel Promotion/Public Relations/Advertising Office Equipment

0

0

4

PROJECT BUDGET continued Sources

DCED

Owner/Developer

Total

SBA 504 loan

RELATED COSTS Professional Services/Consultants

0

10,000

8,000

18,000

Engineering

0

4,000

8,000

12,000

Inspections

0

10,000

0

10,000

Fees

0

0

0

0

Insurance

0

0

0

0

Environmental Assessment

0

0

0

0

Legal Costs

0

0

0

0

Closing Costs

0

0

0

0

Contingencies

0

0

0

0

Subtotal

0

24,000

16,000

0

40,000

OTHER See page t11 for detail

Other

0

0

0

0

0

250,000

1,139,000

926,000

0

2,315,000

Subtotal TOTAL

VIII. BASIS OF COSTS Check appropriate item i :1! Appraisals r

.

Bids/Quotations Contractor Estimates

[j Engineer Estimates Sales Agreements [1 Budget Justification

IX. PROJECT NARRATIVE Attach a comprehensive description of this project. The narrative must specifically address each cost item identified in the project budget. In general, the narrative must include: A.

Specific Problems to be Addressed or Improvement to be Financed

B.

Project Description

C.

Project Schedule, Key Milestones and Dates

D.

Documentation to Support Budget Costs

If applicable, include: E.

Certifications or Assurances

F.

Planning/Zoning Letter 5

NARRATIVE The TC Salon business will be acquiring the Shanty property and renovating the property and moving their business there on the 19th Street retail corridor. The total project including acquisition, renovation and facade and equipment will total 2.3 million dollars. Currently, there are 19 full time jobs and 10 part time jobs in their South Whitehall facility and by moving to the City to a larger facility, they can expand to 29 full time jobs and 24 part time jobs. From moving from the South Whitehall location, TC Salon owner anticipates a 32% increase in gross revenues from 2007 in their old location to 2009/2010 in their new location. The TC Salon Spa/ Shanty Project is the purchase, renovation of the Shanty Property and relocation of our existing TC Salon Spa in South Whitehall Township. This move will give their company the much needed additional parking and space for growth. Having experienced six_ years ago the opening of a facility in Bethlehem similar to this proposal, the owners have very accurate projections for growth. TC Salon Spa is a locally, nationally and internationally recognized salon and day spa and it is their mission to continue to offer the Lehigh Valley Community the same great services at the same high professional standards. The City of Allentown is requesting $250,000 from Pennsylvania Department of Community and Economic Development funds to be used towards the acquisition of the property which will total $1,075,000. Additionally, the owner will be applying for an SBA 504 loan through Lehigh Valley Economic Development Corporation. The new use meets the zoning regulations for the City of Allentown and the new owners have met with code officials to discuss code compliance with the new facility. This project is essential to the enhancement of the 19th Street corridor. Along with this project, there are plans for an entire streetscaping project from the Allentown Fairgrounds up until Tilghman Street. This will include new streetlights, trees, benches, banners, bike racks, relocation of utilities, etc. Additionally, the City is working with the Lehigh County Agricultural Society and the Allentown Fairgrounds to renovate the exterior of the Allentown Farmers Market. Timeline: Acquisition: September 2008 Design: August 2008 Construction: October, 2008 thru February, 2009 Equipment set up: March, 2009 Opening: April: 2009

6

IL PROJECT SITE LOCATION S Cont. Site Two: Address:

617 N. 19th Street

City:

Allentown

Slate:

PA

Zip:

18104-4333

County:

Lehigh

Municipality:

Allentown City

132

PA Senate #:

16

PA House #:

US Congressional #:

15

Current # of Full-Time Employees at this Site:

0

# of Full-Time Jobs to be Created at this Site:

29

.7; Enterprise Zone

❑ Act 47 Distressed Community

LI Brownfield

El Prime Agricultural Area

I 11 Keystone Opportunity Zone -

Li

Uses PA Port

Site Three:

Address:

City:

State:

Zip:

County:

Municipality:

PA House #:

PA Senate #:

US Congressional #: Current # of Full-Time Employees at this Site: # of Full-Time Jobs to be Created at this Site:

i_ _ --- -

0

;

Enterprise Zone

❑ Act 47 Distressed Community

❑ Brownfield

❑ Prime Agricultural Area

Keystone Opportunity Zone

III Uses PA Port

Site Four:

Address:

City:

State:

Zip:

County:

Municipality:

PA House #:

PA Senate #:

US Congressional #: Current # of Full-Time Employees at this Site: # of Full-Time Jobs to be Created at this Site: El Enterprise Zone LI Keystone Opportunity Zone

❑ B ownfield

❑ Act 47 Distressed Community ❑ Uses PA Port

li Prime Agricultural Area

7

II. PROJECT SITE LOCATION S Cont. Site Five: Address:

City:

State:

Zip:

County:

Municipality:

PA House #:

PA Senate #:

US Congressional #: Current # of Full-Time Employees at this Site: # of Full-Time Jobs to be Created at this Site:

L Enterprise Zone

❑ Act 47 Distressed Community 0 Uses PA Port Prime Agricultural Area

LI Brownfield

n

L j Keystone Opportunity Zone

Site Six: Address:

City:

State:

Zip:

County:

Municipality:

PA House #:

PA Senate #:

US Congressional #: Current # of Full-Time Employees at this Site: # of Full-Time Jobs to be Created at this Site: 0 Enterprise Zone Li Keystone Opportunity Zone

❑ Brownfield

❑ Act 47 Distressed Community

Pi Prime Agricultural Area

❑ Uses PA Port

VII. PROJECT BUDGET Continued Sources Soo page 3 - 5 for Budget 1 . 4

Type of Financial Assistance

ACQUISITION Land Buildings Subtotal

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

GENERAL CONSTRUCTION New Construction Renovations Subtotal INFRASTRUCTURE/ SITE PREPARATION Roads & Streets Parking Water/Sewer Utilities Demolition Excavation/Grading Environmental Cleanup Subtotal MACHINERY & EQUIPMENT New Equipment Purchase Used Equipment Purchase Upgrade Existing Installation/Building Modification Vehicles Subtotal

9

VII. PROJECT BUDGET continued Sources OPERATING COSTS/ WORKING CAPITAL Working Capital Salaries & Fringe Benefits Training & Technical Assistance Consumable Supplies Travel Promotion/Public Relations/Advertising Office Equipment Space Costs Audit Indirect Costs Subtotal

0

0

0

0

0

0

0

RELATED COSTS Professional Services/Consultants Engineering Inspections Fees ■ Insurance Environmental Assessment Legal Costs Closing Costs Contingencies Subtotal OTHER Other

See page 11 for detail

Subtotal

0

0

0

0

TOTAL

0

0

0

0

10

VII. PROJECT BUDGET continue. Other Detail Sources

DCED

Owner/Developer

SBA 504 loan

OTHER

Subtotal

0

0

0

0

0

0

0

0

11