CCR2017097-RLF-Schulew
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #097-2017
APPROVAL OF REVOLVING LOAN FUND APPLICATION
(Schulew LLC d/b/a Legacy Landscaping LLC)
(S81 W18510 Gemini Drive)
WHEREAS, The City of Muskego is a participant in the Revolving Loan Fund (RLF)
Plan; and
WHEREAS, Schulew LLC d/b/a Legacy Landscaping LLC has submitted a loan
application form requesting a loan in the amount of $125,000.00; and
WHEREAS, The Community Development Authority recommended approval at its April
18, 2017 meeting, subject to the conditions outlined by SEWRPC being met with one
added contingency that the collateral available to secure the loan would include
personal guaranties and junior mortgages on the residences of the two owners in the
amount of $125,000.00 each; and
WHEREAS, On April 25, 2017, the Common Council adopted Resolution #040-2017
granting Schulew LLC d/b/a Legacy Landscaping LLC’s loan request; and
WHEREAS, As a result of a lack of collateral sufficient to secure the loan, the Common
Council rescinded Resolution #040-2017 on November 28, 2017; and
WHEREAS, At this time, Schulew LLC d/b/a Legacy Landscaping LLC has agreed to
provide additional collateral to secure the loan such that the matter is back before the
Common Council for review and debate.
NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of
Muskego does hereby approve the loan fund application submitted by Schulew LLC
d/b/a Legacy Landscaping LLC subject to the following conditions:
1. That a $125,000.00 RLF loan is provided to Schulew LLC.
2. That the RLF loan is matched with at least $1,274,400.00 in financing from
Citizens Bank of Mukwonago and the Small Business Administration (SBA) 504
program, along with at least $16,600.00 in owners’ equity.
3. That the RLF loan is provided with a term and amortization of 10 years, a 12-
month deferral on principal payments, and an interest rate of 2.0%. Interest-only
payments would be made on a monthly basis during the deferred period.
Resolution #097-2017 Page 2
4. That the following collateral be pledged by Schulew LLC d/b/a Legacy
Landscaping LLC to secure the RLF loan:
Third mortgage on Daryl Schure's residential property in Racine County
such that sufficient equity is available to secure the City’s loan.
Third mortgage on Scott Lewitzke's residential property in Waukesha
County such that sufficient equity is available to secure the City’s loan.
Unlimited personal guarantees of Daryl Schure and Scott Lewitzke.
Irrevocable Letter of Credit from Daryl Schure and/or Scott Lewitzke for
the length of the loan issued by Citizens Bank of Mukwonago in the total
amount of $87,500.00.
5. That the Company creates seven new full-time equivalent jobs that are recruited
through the Waukesha County Workforce Development Center. At least 51% of
the new jobs would be provided to low and moderate income persons.
6. That the borrowers provide to the City, or its designee, on an annual basis,
semi-annual financial statements and signed copies of the borrower’s Federal
income tax return.
BE IT FURTHER RESOLVED That the Mayor and Clerk-Treasurer are authorized to
sign any documents in the name of the City and the City Attorney is authorized to make
substantive changes as may be necessary in order to preserve the general intent
thereof.
TH
DATED THIS 28 DAY OF NOVEMBER , 2017.
SPONSORED BY:
COMMON COUNCIL
This is to certify that this is a true and accurate copy of Resolution #097-2017 which
was adopted by the Common Council of the City of Muskego.
_________________________
Clerk-Treasurer