4coxrer LAUREN K.

GIGUERE
Deputy Director
Community and Economic Development

Allentown
610.439.5965 Fax 610.439.5947
giguere@allentowncity.org

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 610-439-
5965 or my email address is giguere@allentowncity.org .

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 # 7044066 and its attachments are true and correct
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

Print Name: Mayor Ed Pawlowski Title: Mayor, City of Allentown

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
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
❑ 1 227 LIBERTY STREET
SUITE 202
ALLENTOWN PA 18102
PHONE. (610) 821-5577
FAX (610) 821-6325
.
E - MAIL: ji mannbpahouse.nel
COMMITTEES
FINANCE. MAJORITY VICE CHAIR
CONSUMER AFFAIRS
ENVIRONMENTAL RESOURCES
AND ENERGY
HOUSE OF REPRESENTATIVES I NSURANCE
POLICY
COMMONWEALTH OF PENNSYLVANIA TRANSPORTATION
HARRISBURG
COMMISSIONS & CAUCUSES
TEAM PENNSYLVANIA FOUNDATION,
BOARD MEMBER
PHEAA, BOARD MEMBER
ARTHRITIS CAUCUS. CO-CHAIR
COMMUNITY COLLEGE CAUCUS.
CO-CHAIR

July 31, 2008

The Honorable Dennis Yablonsky, Secretary

PA Department of Community & Economic Development
Commonwealth Keystone Building, 4 Floor111

Harrisburg, PA 17120

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
111

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.

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
459 MAIN CAPITOL BUILDING APPROPRIATIONS
HARRISBURG, PA 17120 EDUCATION
JUDICIARY
( 717) 787-1349
POLICY
FAX: (717) 772-3458
E-MAIL: pbrowne@pasen.gov PUBLIC EMPLOYEE RETIREMENT COMMISSION
www.senatorbrowne.com 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: City of Allentown CEO: Mayor Ed Pawlowski
CEO Title: Mayor of Allentown Address: 435 Hamilton Street
City: Allentown State: PA
Zip: 18101-1699 FEIN: 236003116
NAICS Code: 9261 C.- For-Profit Corporation C . Non-Profit Corporation
.
Contact Name: Lauren K. Giguere 4' Government C Partnership C Sole Proprietorship
Phone:
Title: Deputy Director, Allentown DCED 1(610) 439-5965
Fax: (610) 439-5964 SAP Vendor #: 11 77523-
Email: giguere@allentowncity.org PA Revenue Tax Box # 139818445
Internet Access: IR Yes I —
No

Business Specifics
19
Current # of Full-time Employees: Pennsylvania Worldwide 0

Minority Owned: r Yes x No

If yes, ethnicity (optional):
Woman Owned: 1 Yes X No

I- Sole Proprietorship X S Corporation P Partnership F C Corporation

r -
Limited Liability Corp r Limited Liability Partnership
Total Sales $ 1,500,000 R&D Investment (% of budget) 0
Total Export Sales $ 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

Zip: 1 8018-5708 FEIN: 232820113

8129
NAICS Code: UC# 39-32618

Contact Name: Frank Shipman Title: President and CEO

Phone: (610) 393-9900 Fax: (610) 865-3308

Frank@TCSalonSpa.com 1--
.E-mail: Internet Access: V( Yes 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 L.1 Operating Costs/Working Capital

Li General Construction ❑ Machinery and Equipment El Related Costs
EJ Other Costs

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

rk; Community ❑ Environmental Li Recreation

Development/Revitalization
1 . 1 Community Services L-i) Export - Domestic Trade (out of PA) ❑ Tax Credits

,_ . _1 Crime Prevention ❑ Export - International Trade (out of USA) ❑ Technology Development

IX)
L Economic ❑ Housing ❑ Tourism Promotion
Development/Revitalization
0 Education ❑ Planning

VII. PROJECT BUDGET

See page 9 • 10
Include all sources of funds and project costs. (Include monies not financed with DCED funds.) for Budget 5 • 8

Sources DCED Owner/Developer SBA 504 loan Total

Type of Financial Assistance DCED Private State for Budget 1 - 8

ACQUISITION

Land 0 0 - 0 0

Buildings 250,000 395,000 430,000 1,075,000

Subtotal 250,000 395,000 430,000 0 1,075,000

GENERAL
CONSTRUCTION

New Construction 0 0 0 0

Renovations 0 450,000 300,000 750,000

Subtotal 0 450,000 300,000 0 750,000

INFRASTRUCTURE/
SITE PREPARATION
Roads & Streets 0 0 0 0
Parking 0
0 0 0
Water/Sewer 0 0
0 0

3
PROJECT BUDGET continued
Sources
DCED Owner/Developer SBA 504 loan Total
Utilities 0 0 0 0
Demolition
0 0 0 0
Excavation/Grading 0 0 0 0
Environmental Cleanup
0 0 0 0
, Subtotal 0 0 0 0 0
MACHINERY &
EQUIPMENT
New Equipment
Purchase 0 270,000 180,000 450,000
Used Equipment
Purchase 0 0 0 0
Upgrade Existing
0 0 0 0
Installation/Building
Modification 0 0 0 0
Vehicles
0 0 0 0
Subtotal
0 270,000 180,000 0 450,000
OPERATING COSTS/
WORKING CAPITAL

Working Capital
0 0 0 0
Salaries & Fringe
0 0 0 0
Benefits
Training & Technical
Assistance 0 0 0 0
Consumable Supplies
0 0 0 0
Travel
0 0 0 0
Promotion/Public
Relations/Advertising 0 0 0 0

Office Equipment
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 0 0

4
 PROJECT BUDGET continued

Sources DCED Owner/Developer SBA 504 loan Total

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
0 0 0 0
Assessment

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

Other See page t11 for detail

Subtotal 0 0 0 0 0

TOTAL 250,000 1,139,000 926,000 0 2,315,000

VIII. BASIS OF COSTS Check appropriate item

i :1! Appraisals
r
. [j Engineer Estimates
Bids/Quotations Sales Agreements
Contractor Estimates [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
PA House #: 132 PA Senate #: 16
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 LI Brownfield ❑ Act 47 Distressed Community

I 11 Keystone Opportunity Zone
- El Prime Agricultural Area 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_ _
--- -
; Enterprise Zone ❑ Brownfield ❑ Act 47 Distressed Community
0 Keystone Opportunity Zone ❑ Prime Agricultural Area 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 ❑ B ownfield ❑ Act 47 Distressed Community

LI Keystone Opportunity Zone li Prime Agricultural Area ❑ Uses PA Port

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 LI Brownfield ❑ Act 47 Distressed Community

L j Keystone Opportunity Zone n Prime Agricultural Area 0 Uses PA Port

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 ❑ Brownfield ❑ Act 47 Distressed Community

Li Keystone Opportunity Zone Pi Prime Agricultural Area ❑ Uses PA Port
VII. PROJECT BUDGET Continued

Sources

Type of Financial Assistance Soo page 3 - 5

for Budget 1 . 4

ACQUISITION

Land

Buildings

Subtotal 0 0 0 0

GENERAL
CONSTRUCTION

New Construction

Renovations

Subtotal 0 0 0 0
INFRASTRUCTURE/
SITE PREPARATION
Roads & Streets

Parking

Water/Sewer

Utilities

Demolition

Excavation/Grading

Environmental Cleanup

Subtotal
0 0 0 0
MACHINERY &
EQUIPMENT
New Equipment
Purchase
Used Equipment
Purchase
Upgrade Existing

Installation/Building
Modification
Vehicles

Subtotal
0 0 0 0

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

RELATED COSTS

Professional
Services/Consultants

Engineering

Inspections

Fees

■ Insurance

Environmental
Assessment

Legal Costs

Closing Costs

Contingencies

Subtotal 0 0 0 0

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

0 0 0 0 0 0 0 0
Subtotal

11