Consent 1.D.
Regular City Council Meeting
- Meeting Date:
- 02/14/2011
- TITLE
- Approval of Downtown Revolving Loan Fund Recommendation for Tracy Lofts Development Venture, LLP
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The Downtown Revolving Loan Committee met on January 18, 2011, and approved a loan to Tracy Lofts Development Venture, LLP.
Tracy Lofts Development Venture, LLP is requesting a loan from the Downtown Revolving Loan Fund for the purpose of constructing loft apartments in the Tracy Building, located at 2600 Montana Avenue. Tracy Lofts Development Venture, LLP purchased the building and is in the process of remodeling the former warehouse. The total project costs will be approximately $1,870,000, of which the Downtown Revolving Loan Fund will loan no more than $250,000 while requiring equity by the partnership of at least 20% of total costs. The Downtown Revolving Loan will be subordinate to a bank loan of approximately $1,345,000.
Tracy Lofts Development Venture, LLP is requesting a loan from the Downtown Revolving Loan Fund for the purpose of constructing loft apartments in the Tracy Building, located at 2600 Montana Avenue. Tracy Lofts Development Venture, LLP purchased the building and is in the process of remodeling the former warehouse. The total project costs will be approximately $1,870,000, of which the Downtown Revolving Loan Fund will loan no more than $250,000 while requiring equity by the partnership of at least 20% of total costs. The Downtown Revolving Loan will be subordinate to a bank loan of approximately $1,345,000.
ALTERNATIVES ANALYZED
If Council does not approve the loan, completion of the project may be difficult and the building could remain vacant.
FINANCIAL IMPACT
Subsequent to approval of this loan, the loan fund will have a balance available of approximately $2,230,000. ($3,200,000 approved and $970,000 outstanding)
RECOMMENDATION
The Downtown Revolving Loan Committee recommends that council approve the loan to Tracy Lofts Development Venture, LLP for no more than $250,000 while requiring equity of at least 20% of total costs.