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File #: 18-5783    Version: 1 Name: Village of Alsip, Illinois
Type: BUILT Loan Status: Approved
File created: 9/5/2018 In control: Board of Commissioners
On agenda: 9/12/2018 Final action: 9/12/2018
Title: BUILT COOK LOAN PROGRAM (HUD SECTION 108 LOAN GUARANTEE PROGRAM) Department: Planning And Development Municipality: Village of Alsip, Illinois Request: Approval of the project and authority to execute documents for a Broadening Urban Investment to Leverage Transportation (BUILT) in Cook project loan. Purpose: The HUD Section 108 funds will replace approximately $3,000,000.00 of short-term financing initially provided by Corrugated Supplies Company (majority shareholder) that was used for property acquisition and equipment purchases in order to renovate and convert the plant into a fully-operational containerboard mill. Township: Worth District: District 6 Location: 13101 South Pulaski Road, Alsip, Illinois 60803 Loan Amount: $3,000,000.00 Loan Term: 7 year loan Loan Amortization: 10 year Amortization Interest Rate: 4.25% Application Fee: $1,000 Commitment Fee: 2% origination fee Estimated Total Project Costs: $75,176,969 Estimated Jobs Created: ...
Indexes: (Inactive) JAY E. STEWART, Chief, Bureau of Economic Development

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BUILT COOK LOAN PROGRAM (HUD SECTION 108 LOAN GUARANTEE PROGRAM)

 

Department:   Planning And Development

 

Municipality:  Village of Alsip, Illinois

 

Request:  Approval of the project and authority to execute documents for a Broadening Urban Investment to Leverage Transportation (BUILT) in Cook project loan.

 

Purpose:  The HUD Section 108 funds will replace approximately $3,000,000.00 of short-term financing initially provided by Corrugated Supplies Company (majority shareholder) that was used for property acquisition and equipment purchases in order to renovate and convert the plant into a fully-operational containerboard mill. 

 

Township:  Worth 

 

District:  District 6 

 

Location:  13101 South Pulaski Road, Alsip, Illinois 60803

 

Loan Amount: $3,000,000.00

 

Loan Term: 7 year loan 

 

Loan Amortization: 10 year Amortization

 

Interest Rate:  4.25% 

 

Application Fee:  $1,000 

 

Commitment Fee: 2% origination fee 

 

Estimated Total Project Costs:  $75,176,969

 

Estimated Jobs Created: 85 full-time jobs 

 

Estimated Jobs Retained: None 

 

Other Approvals:  EDAC Subcommittee

 

Fiscal Impact: Not applicable

Account(s):   Deposit Account, Repayment Account 

Summary:  The Alsip Mini Mill manufacturing facility’s use of HUD Section 108 funds will assist in the generation of approximately $70 million in private capital investment and the creation of 85 jobs related to the acquisition and conversion of a formerly shuttered paper mill facility that has been closed since 2014 due to economic reasons as the coated paper industry has been on a decline for several years due to consumers moving from print to electronic media consumption. The closure has negatively impacted local community residents and commerce in the Village of Alsip and the surrounding area in southern Cook County. Thus, the HUD Section 108 loan program will serve as a key economic development tool within Cook County economic development portfolio to support projects such as Alsip Mini Mill to significantly grow jobs at a faster rate for residents in the southern suburbs of the County.

  

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