RANTOUL — A family entertainment venue with miniature golf, an arcade and other features could be built in Rantoul.
The village of Rantoul EDA Loan Committee will consider a request for a 10-year loan to help fund construction of the facility near the Rantoul sports complex in west Rantoul.
The project is one of two requests totaling $1 million that will be heard Monday by the committee — the other being for the purchase and renovation of a building on Century Boulevard for a hair salon.
A group known as The Fringe Entertainment LLC is requesting a $500,000 EDA loan to build the 5,280-square-foot entertainment facility that would include 36 holes of miniature golf, arcade, concession area and “state-of-the-art simulators.”
Comprising the development group are Travis and Nikki Flesner, Jeff and Katie McKaufsky, Bill and Sandy Roos and Randy McKaufsky.
It will feature indoor and outdoor seating.
Their intended purpose for the facility is to provide “a much-needed opportunity for our community to have options for family entertainment,” according to the application.
It is designed to appeal to people using the sports complex, which is scheduled to open in 2021, as well as to “serve as a hub for tourists.”
The loan request is for zero percent interest to be paid back over 10 years with $4,166 monthly payments. It expects to create 20 jobs. Collateral is 3 acres of land and $320,000 in cash.
In a three-year cash flow projection, the investors anticipate the first year of operation will generate revenue of about $1.2 million with expenses at just over $828,000, with a $455,000 profit. It includes slight increases in profit margins in years two and three.
The application indicates the investors spent a great deal of time with owners of similar venues to prepare the three-year projections.
The second loan application, also for $500,000, is for the purchase and renovation of a vacant building at 424 S. Century Blvd. for Shear Excellence Salon. The vacant building most recently housed Logan’s Pub.
The salon currently does business at a building three blocks north at 105 S. Century Blvd., which would be used for collateral.
As with the entertainment venue loan, the Shear Excellence loan would be for zero percent interest, with $4,166 monthly payments. Owners Bridget and Ariel Rogers project 12 jobs would be retained and 40 jobs created.
The Rogerses said in their application that they moved Shear Salon, which was established in 2015, to its current Century Boulevard location after outgrowing the former facility “and rehabilitated an empty building, turning it into a beautiful and successful piece of Rantoul.”
They said they draw a number of customers from Rantoul as well as neighboring communities.
The renovation would include the addition of more salon stations, spa rooms and services, which they said would create additional revenue and job opportunities for the community. They also plan to add a clothing boutique.
The application said even though the business was closed for three months due to the pandemic, its retail revenue was up, while service revenue, which decreased, was better than expected.
They expect to end the current year at or slightly above revenue from last year and project an increase in 2021 of 28 percent in service revenue and 16 percent retail. Another 28 percent growth in service revenue and 17 percent retail is projected in 2022.
Prior to discussion of the loans, the committee members will be asked their opinion about charging zero percent interest.
Village Administrator Scott Eisenhauer said the federal government is allowing local governments to offer those loans in an effort to encourage development and create or retain jobs. The village’s EDA loan program uses federal money.
“We will ask the committee if that is a practice they wish to implement here,” Eisenhauer said. “We have noticed an uptick in interest in the last month for applications, so perhaps the federal government’s motivation is being met.”
The meeting will be held at 3 p.m. in the municipal building. The committee will make recommendations on the loan request. The final decisions will be made by the village board, which holds its monthly study session Tuesday night.