Title
Corridors of Opportunity Rehab Loan to E-Fix Development Corporation for 2020 Beatties Ford Road
Action
Action:
A. Approve a Rehab Loan in an amount not to exceed $904,000 to E-Fix Development Corporation (Developer) for rehabilitating the property and building located at 2020 Beatties Ford Road (the Property), and
B. Authorize the City Manager to negotiate and execute a Business Matching Grant contract not to exceed $180,000 with E-Fix Development for façade, security, and interior upfit improvements, contingent upon receipt of successful application by the Developer.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Todd DeLong, Economic Development
Explanation
§ In 2007, City Council adopted the policy for the city to take a leadership role in developing and implementing public and private collaborative strategies and investments that aim to:
- Attract private sector investment to grow jobs, businesses, and services;
- Expand the tax base in the business corridors; and
- Support the revitalization of the corridors into mixed use areas promoting the adjacent neighborhoods as safe, viable, and sustainable.
§ In 2020, City Council enhanced the city’s commitment to corridor revitalization through the Corridors of Opportunity initiative.
- The city is concentrating its resources at the intersection of Beatties Ford Road and LaSalle Street by investing and facilitating initiatives in specific locations within each corridor to ensure long-lasting and positive impacts are realized sooner than they would be through a piece-meal approach. This includes work in transportation and infrastructure, talent and employment, public Wi-Fi, placemaking, and other initiatives.
§ The Developer proposes a full rehab of the interior and exterior space of the property currently referred to as Krystle Village located at the intersection of Beatties Ford Road and LaSalle Street.
§ The Developer will apply for the city’s Matching Grant Programs - façade, security, and interior upfit.
- If approved through the application process, E-Fix may be awarded up to $180,000 in matching funds. An additional 10 percent match may be applied if the developer engages certified MWSBE firms for eligible work.
- Matching grants will be reimbursed by the Business Corridor Revitalization Program.
§ The Developer is seeking additional financial support to renovate the site located at the Beatties Ford Road/LaSalle Street intersection.
- The Developer has requested a $904,000 loan from the city to support its revitalization efforts.
- Staff recommends that Council consider an interest-only Rehab Loan with the following general terms:
§ Interest at prime + 1 percent (4.25 percent);
§ Full repayment of principal balance upon second refinance, sale of property assignment of ownership of the property, or 20 years, whichever occurs first;
§ The city will require interest only payments on monthly basis
§ Deed of trusts will be placed on the property until such time the principal balance is paid in full;
§ Loan funds must be applied to rehabilitation of commercial space located at 2020 Beatties Ford Road;
§ City will retain a third party to service the loan on behalf of the city; and
§ The applicant will be subjected to the third party’s underwriting criteria
- Rehab Loan will be funded by Corridors of Opportunity.
Fiscal Note
Funding: General Capital Investment Fund
Attachments
Attachment(s)
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