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Patrick E. J. Titterington

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City of Troy

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100 S. Market Street

P. 0 . Box 3003
Troy, Ohio 45373
www.troyohio.gov
phone : (937) 335- 1725
fax:
(937) 339-8601
patrick.titterinqton @troyohio.gov

MEMORANDUM

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TO:

Mrs. Baker, President of

FROM:

Patrick E. J. Titterington .

DATE:

November 6, 2014

SUBJECT:

DOWNTOWN BUILDING REPAIR REVOLVING LOAN - 9-11 E. MAIN STREET FOR RYAN &
SARAH McNEILL

RECOMMENDATION:
That an $180,765 loan is approved by Council from the Downtown Building Repair Revolving Loan Fund
(DBR) to Ryan and Sarah McNeill for the purchase of the building at 9-11 East Main Street.
BACKGROUND:
Mr. and Mrs. McNeill submitted an application for a DBR loan for $180,765 for the purchase of the
property located at 9-11 East Main Street (aka Wasserman Building). The Downtown Loan Committee
(DLC) met on November 6, 2014 to review the following application :

$180,765 (includes 3% closing fee of $5,265)

20 year repayment period
3% simple interest
Co-Borrower: Tom and Ruth Ann McNeill
Security for the loan will be the first position mortgage on the building to be purchased.

The first floor of the property is currently occupied . The DLC review included the public purpose to be
served by the approval of the loan. The upper story floors have been vacant for decades, and the
McNeills have a vision to get the upper story floor occupied with office and residential uses. This
additional capital investment made with private dollars will both greatly strengthen the building as well
as positively influence this block of buildings on the National Register.
The DLC is recommending to Council that a loan be approved to Ryan and Sarah McNeill for the purchase
of the building at 9 - 11 East Main Street based on the following terms:

$180,765 (includes 3% closing fee of $5,265)

20 year repayment period
3% simple interest
Co-Borrower: Tom and Ruth Ann McNeill
Security for the loan will be the first position mortgage on the building to be purchased with
additional liens in order to meet 100% collateralization of loan - certified building appraisal
pending
Second floor must be ready for occupancy within 24 months and the third floor within 36
months.

Page Two

The DLC noted that this loan structure departs from the adopted DBR Guidelines in that the loan amount
exceeds $100,000. With a fund balance in excess of $600,000 the loan fund can accommodate this loan.
Information provided from the DLC meeting is attached.
The goal of this loan program is to provide loans to qualified applicants to improve buildings in the
downtown. As loans are repaid, those monies are then available for other applicants.
REQUESTED ACTION:
It would be appreciated if you would assign to a Committee of Council:
Consideration of a loan in the amount of $180,765 from the DBR Revolving Loan Fund to provide
funding assistance for the applicant to purchase the property at 9-11 East Main Street based on
the terms as recommended by the Downtown Loan Committee. We also ask for consideration of
emergency legislation so that the loan can be closed in a timely manner.
That legislation includes deviating from the DBR Guidelines of a loan amount exceeding $100,000.

encl.
cc:

Mayor Beamish
Mr. Dando
Mr. Harris

100 South Market Street

Troy, Ohio 45373
(937) 339-9601

Date: November 7, 2014

To: Patrick Titterington, Director of Public Service and Safety
From: Gregg Harris, Assistant Development Director
Subject: DBR Loan application from Ryan & Sarah McNeill
Please ask City Council to consider approval of an application from Ryan and Sarah McNeill for
a Downtown Building Repair Revolving Loan Fund (DBR) loan of$180,765 toward the
purchase of the building located at 9-11 East Main Street.
Built by John Wasserman in 1880, the building known as the "Wasserman Building" is a strong
contributor to Downtown Historic Troy and listed on the National Register of Historic Places.
Previously held by a trust, the building had been severely neglected and determined by the
insurance adjuster to come down in 2007 due to extensive damage from a roof collapse.
However, with the combined effort of Planning Commission, the city staff and a local private
developer, the building was saved. Through privately invested dollars the building has been
stabilized with a new roof, 1st floor improvements, and has commercial tenants which include
Sweeny Todd Salon and HER Realtors.
The DBR program has been a catalyst in the revitalization process, providing a critical public
tool in attracting new owners to invest in downtown. The Downtown Loan Committee (DLC)
met in public session on November 7, 2014 and discussed how the public purpose will be served
by approval of the loan. The upper story floors have been vacant for decades, and the McNeill's
have a vision to get the upper story floors occupied with office and residential uses. That future
additional capital investment made with private dollars will both greatly strengthen the building
as well as positively influence this block of buildings on the National Register.
The DLC voted to recommend City Council approve the requested loan by emergency legislation
and with the following parameters and conditions:

The loan structure does depart from the adopted DBR Guidelines of exceeding $100,000
Borrower: Ryan and Sarah McNeill
Co-Borrower: Tom & Ruth Ann McNeill
Loan amount: $180,765
Interest rate: 3.0% simple annual interest
Repayment term: 20 years
Collateral: 1st position lien on building with additional liens in order to meet 100%
collateralization of loan - certified building appraisal pending
Second floor must be ready for occupancy within 24 months and the third floor within 36
months.

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City of Troy
City Hall
l 00 South Market Street
Troy, Ohio 45373
www.troyohio.gov

October 31, 2014

Telephone: (937) 339-9601

Fax: (937) 339-9341

To:
Members of Downtown Loan Committee
From: Gregg Harris
RE:
Ryan & Sarah McNeill

G-H

Ryan and Sarah McNeill provided an application requesting $175,500 to purchase the property located at 9-11 E.
Main Street
Built by John Wassennan in 1880, the building known as the ''Wasserman Building" is a strong contributor to
Downtown Historic Troy and listed on the National Register of Historic Places. Previously held by a trust, the
building had been severely neglected and determined by the insurance adjuster to come down in 2007 due to
extensive damage from a roof collapse. However, with the combined eff01t of Planning Commission, the city staff
and a local private developer, the building was saved. Over the last six years, ownership has changed twice.
Through privately invested dollars the building has been stabilized with a new roof, 1st floor improvements, and has
viable businesses.
The building was recently put on the real estate market by owner Mike Arnold, who has signed a purchase
agreement with the McNeill's. Originally listed at $209,000, the agreed purchase price is at $195,000. The
McNeill's will provide cash equity of $19,500, which equals the 10% DBR equity match requirements. With the
two business tenants (Sweeney Todd Salon and HER Realtors), the building cash flows positive at $2,850 a month,
more than enough to pay for the approximate $975 monthly debt service over a 240 month period.
The DBR program funds are for eliminating the influence of blight and to encourage revitalization in Downtown
Historic Troy. As stated in their attached letter, the McNeill's have a vision for the historic building including
upper floor occupancy that will be a combination of office and residential. Additional capital investment often goes
into a building when there is a change of ownership, reducing the overall deteriorating effects downtown. The DBR
program has been a catalyst in the revitalization process, providing a critical public tool in attracting new owners to
invest in downtown.
Ryan McNeill has also requested that the 3% closing fee ($5,265) be rolled into the loan for a total of $180, 765.
I recommend the DLC recommend to City Council approval of the loan with the following terms:
Borrower: Ryan and Sarah McNeill
Co-Bon-ower: Tom & Ruth Ann McNeill
Loan ammmt: $180,765
Interest rate: 3. 0% simple annual interest
Repayment term: 20 years
Collateral: first m01tgage
This loan structure depaits from the adopted DBR Guidelines in that the loan amount exceeds $100,000. However,
the DBR loan fund currently has fill unc01mnitted balance over $600,000 and can accommodate this loan.
In order to complete the purchase before the end of November, Ryan McNeill also requests emergency legislative
action so the loan can be closed in a timely manner.

RY_AN & SARAH

~1CNEILL

October 20, 2014

City of Troy, Ohio
100 South Market St.
Troy, OH 45373

Dear Members of the Troy Downtown Committee:

I'm writing to you today seeking loan funds from your Downtown Building Repair Program
in order to purchase 9-11 E. Main Street.
It may seem unusual for out-of-staters like ourselves to pursue ownership of building in
Troy, but we actually have long-standing ties to your community. My wife Sarah grew up in
Troy, and her immediate family still resides in Troy and surrounding communities.
Although we now live in Norman, OK, we adore Troy and think of it like a second home.
Since my first visit to your town, I have been extremely impressed with its beauty, and the
pride of ownership that your residents clearly take in their homes and businesses.
Sarah and I just recently relocated to Norman from Los Angeles, where I have lived and
worked for the past 10 years in the film industry. We moved to Oklahoma a year ago to be
closer to my family and immediately undertook the renovation of a historic 4-unit
residential building near the University of Oklahoma campus. Our focus was to preserve
the house's historical integrity, while making design-minded improvements to the interior
to increase its value and usability. These same principals will guide our planned
renovations of 9-11 E. Main St. in Troy.
This building fits the criteria that we've been seeking as a follow-up real estate project-a
historic building with a lot of character in an economically-sound area with existing
positive cash-flow. We would love to see this building brought back to its former glory
with additional office space and loft-style apartments on the upperfloors. Your downtown
loan program with its favorable terms would be a tremendous help in terms of freeing up
money that can be earmarked toward these renovations.
As I mentioned, this property has positive cash-flow by way of the two existing tenants,
HER Realtors and Sweeney Todd Salon . Combined gross monthly income from these
leases is currently at $2850/mo with 2 years remaining on each oftheir leases. Both
businesses have expressed interest in additional commercial space on the 2nd floor, which
is a positive sign for the health of these businesses and gives us, as developers,
408 Chautauqua Ave. Norman, OK 73069

(323) 206-0998

confidence that renovations to the upper floors will result in an even greater return on our
investment.
We are seeking a loan of 90% of the purchase price of $195,000, or $175,500. We plan to
put down a down payment of $19,500 in cash, or 10% of the purchase price. Ideally, we
would love to lock in a 20-year loan at a fixed rate of 3%. We are aware that this loan has a
3% closing fee, which we would ask to be wrapped back into the loan. This would bring
the total loan to $181,350. At an estimated monthly payment of $1,006 on a 3% I 20-year
fixed, we are confident in our ability to make this loan payment from our rental income.
My parents have also agreed to be co-signers on this loan. They bring with them over 50
years of experience in real estate ownership and development in Oklahoma.
My work schedule in the coming weeks is quite busy with a lot of travel. I would ask,
therefore, that should this loan application come before a committee, I could have our
local real estate agent, Lisa Stetzel, appear on our behalf. If my work permits me to be
there in person, I certainly will.
Thank you for considering us for your loan program. We would be thrilled to contribute to
the economic development of Downtown Troy!
Sincerely yours,

;<?'- ~1~1~'/
Ryan McNeil!

CITY OF TROY

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DOWNTOWN BUSINESS BUILDING REPAIR LOAN PROGRAW 1~\~

RECf.\\lt.l1

APPLICATION for LOAN FUNDS

APPLICANT/BORROWER

CO-APPLICANT/CO-BORROWER

Full Name Ryan & Sarah McNeill

Full Name Tom & Ruth Ann McNeill

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BIN#

Address of Residence 408 Chautauqua Ave, Apt 2

City/State/Zip Code _N_o_rm_a_n....:.,_O_K_7_3_0_6_9_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Fax _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Telephone (323) 206-0998

E-Mail (optional) vivaryan@gmail.com

LOAN INFORMATION

City DBR Request =$_,;,.1.;,...75_,,,_50'-0_ _ _ _ _ _ _ __

Total Project Cost "'"'$_19_5~,o_o_o_ _ _ _ _ _ _ _ __
Purpose of Loan Loan is requested for the purchase of 9-11 E. Main St. The requested amount is 90% of the
agreed upon purchase price of $195,000.

Source of Funds for Repayment $2850/mo in gross rents from Sweeney Todd Salon ($1350) and HER Realtors ($1500)
Proposed Collateral/Security for Loan _9_-1_1_E_._M_a_in_S_t._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Estimated Equity Value of Collateral/Security x$_1_95_,,_oo_o_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Source(s) of Other Funds

Borrowers have other sources of income, including ownership of a nursing home

and 40+ rental properties in Oklahoma

Present Commercial Borrowing =-0_ _ _ _ _ _ _ _ _ _ _ _ _ __

BUSINESS INFORMATION

NameofBr~i,~~s-------------------------------~
i ) ~ \

Address of.Bi+s,~1).e~ s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

City/State/Zip Code _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Fax _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Telephone _ __ __ __ _ _ _ _ __

E-Mail (optional) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ __ _ _ _ _ _ __
Corporation _ _ __

Business Legal Status: Sole Proprietorship _ _ __

Partnership _ _ __

Other (state) _ _ _ _ _ _ _ _ _ _ __

Years in Operation _ _ _ _ _ _ _ _ __

Federal Tax ID _ _ _ _ _ _ _ _ _ _ _ _ __

Business Borrowing Resolution Required?

_ _ _ Yes

_ _ _ No

SOURCE AND USE OF FUNDS

TroyDBR

Other

Equity

Fasiade Improvements
Interior Rehab of Code Violations
Interior Rehab (Non-code Violations)*
Acquisition of Real Estate

$175,500 .

$19,500 (cash).

Other (List Below)

TOTALS:

$175,500

* -Not Eligible for Troy Downtown Business Repair RLF dollars.

$19,500

REAL ESTATE OWNED (principal residence and any other real estate)
Address

Market Value

Mortgage Balance

Wilson Nursing Center - 867 US Hwy 70 Alt. Wilson, OK 73463

$2, 100,000

39 Thomas St. Healdton, OK 73438

$250,000

408 Chautauqua Ave. Norman, OK 73069

$215,000

$155,000

PROPERTY INSURANCE COVERAGE FOR SUBJECT PROPERTY

Name and Address of Local Insurance Agent

_W.:. . :. .:. :il:. .JIP::. :r-=-ov..:. :i-=-d=-e_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Policy#

Amount of Coverage _ _ _ _ _ _ _ _ _ _ _ _ _ __

ATTACHMENTS
Please check those that are attached and/or provide an explanation or status of attachment:
Cost Estimates/Contracts

Construction Plans/Drawings

n/a

Troy Historic District Review

n/a

Personal Financial Statement

Business Financial Statement

n/a

Property Deed
Lease Agreement

Signed purchase contract attached

Construction not being financed with city loan funds

Borrower's & Co-Borrower's Personal Financial Statments

forthcoming
x

Lease agreements for 9 & 11 E Main St attatched

Other (List)
Borrower's Recent Tax Returns

CERTIFICATION OF APPLIC~T(S) '

Please read the following statement. If you do not understand any part of it or have any questions about
what you are being asked tosign, please ask someone from Troy Main Street or the City of Troy's Planning
and Development Department to help you. Each applicant must sign below. Should any information on
this application be found to be false or incomplete, such f'mdings may be grounds for denial of the .
requested assistance.
I (we) certify that all information.in this.application is true and complete to the best of my (our) knowledge and
belief. I (we) understand this.iriformation is subject to verification.
I (we) understand that the personal financial information contained in this application is necessary for evaluation
of my (our) application for assistance. This information, however, will remain confidential and will not be
disclosed to the news media or other third parties. I (we) further understand that my (our) name, address, and
total amount of assistance will be subject to public disclosure since public funds are being utilized to assist in the
improvement of my (our) property.

PENALTY FOR FALSE OR FRAUDULENT STATEMENT: U.S.C. Title 18, Section 1001, provides:
"Whoever, in any matter withih the jurisdiction of any department or agency of the United States lmowingly and
willfully falsifies, conceals or covers up a material fact, or makes any false, fictitious or fraudulent statements or
representations, or makes or uses any.false writing or documents, knowing the same to contain any false, fictitious
or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or
both."

10/20/2014

Applicant

Date

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1012012614

Co-Applicant

Date

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