Ali Mitchell of the Mitchell & Tracy Partnership is requesting a downtown revolving loan for $250,000. to be used in the acquisition and remodeling of the Lou Taubert building located at 123 N. 28th Street.  The City will file a lien with a second position behind the bank that will be providing the loan.  The Downtown Loan Committee met on March 3 and recommended this loan go forward for approval by the City Council. A certified appraisal was performed on the building and provided by the owner. Based upon the appraisal the building, at stabilized occupancy, has a market value of $1.55 million.

City Council may:

• Approve the loan to the Mitchell and Tracy Partnership
• Disapprove the loan and Mitchell and Tracy Partnership will have to secure additional financing elsewhere.

The Downtown Revolving loan fund currently has about $475,000 in the fund and if this loan for $250,000 will leave a balance of $225,000.  We are still collecting on 16 loans with a monthly income of approximately $16,000 per month due to loan payments. Approval of this loan will exceed the amount budgeted for FY20. The amount budgeted was based upon prior requests and a budget amendment for this fund, in the amount of $50,000, will be needed at a future council meeting.

The Downtown Revolving loan committee recommends the City Council approve the loan to Mitchell & Tracy Partnership for $250,000.