The Shelbyville City Council took action that will effect two new businesses and one existing business in Shelbyville.

The council approved a revolving loan application for the business, The Yellow Hat. That business is a consignment shop that plans to move from their present location at West Route 16 to the old Finks Jewelry location at 136 E. Main.

By a vote of four-to-one, with Commissioner Brent Fogleman voting no, the council approved the $8,500 loan application for Luke Thompson, who owns The Yellow Hat.

Fogleman asked Mayor Roy Shuff if the city had been provided a financial statement from Thompson and the mayor replied the city had not received such a statement.

Fogleman then made a motion to table the request until a financial statement was provided. The rest of the council must have disagreed with Fogleman on the need of a financial statement because no second was found for Fogleman’s motion.

Commissioner Joe Beck then moved to approve the loan application and that motion passed.

The council next approved two new liquor licenses. One license was for the new Mexican restaurant going into the old Hardees location. The other liquor license went to a business venture called Iron Keg LLC. That license will be for a bar going in at 209 E. Main Street.

Next Shelbyville City Treasurer David Frost explained the need for passage of the annual appropriations ordinance.

“The appropriations ordinance is required to be passed each fiscal year,” Frost told the council. “Without this ordinance the city cannot legally spend money.”

Frost then told the council this was the first mention of this ordinance so the council will vote on this at their next meeting. The council approved a public hearing on the appropriations ordinance at 6:45 p.m. at their next meeting on July 6.

The council next took a very important step towards the revitalization of the downtown area with the TIF and Business Districts. The council talked about the proposed alley vacation and property exchange and set a public hearing on this matter also. That public hearing will be held at the council’s next meeting on July 6 at 6:30 p.m.

Mayor Roy Shuff explained Shelby County State Bank purchased 200.6 feet of the north end of the alley running east and west behind Joe’s Pizza. Then the bank will swap that property for the small piece of land the city owns behind where the old Moose once stood. The city will then use that end of the alley for the mini park and new parking lot proposed as the first step in the downtown revitalization. The bank will use the small piece of property behind the former Moose building and the property where the Gib Smart’s house once sit for new parking for their employees.

“No money will be exchanged, we will just swap properties,” said Shuff.

The council then heard from city engineer Alan Spesard about grant submittal for south 8th street improvement.

“We have an opportunity for several grants to upgrade south 8th street,” Spesard told the council. “The grants we are talking about here are called the Economic Development Program grants and the Truck Access Route Program Grant.”