The principal members of the Old Billings Hardware Development Venture, LP have requested a loan from the Downtown Loan fund for the amount of $250,000. We will have a first position on the property to start and then it will be subordinate to First Interstate Bank when they finance the construction and renovation of the building. The principal members will also be providing personal guarantees. The Downtown Revolving Loan committee met on August 20th and, after discussions, have moved forward to recommend this loan be approved by City Council.

The Old Billings Hardware Building is currently vacant and unoccupiable and has been since the mid-90s. Old Billings Hardware Development Venture, LP was formed (just before 2020) to own, redevelop, and operate the building. The building contains 45,000 sf of area spread equally over the basement and three floors above grade. The proposed redevelopment plan calls for the upper two floors to be converted to 25 apartments (13 on the second floor and 12 on the third floor). The first floor and basement will be redeveloped for a variety of commercial uses (approximately 20,000 sf of useable area on the two levels). Approximately 13 parking spaces will be created on the south side of the building between the building and the tracks. Several new street trees will be planted to comply with the current downtown zoning.

Randy Hafer
Dianne LaFever
Alison LaFever
Cori LaFever
 

City Council may:

• Approve the current request for a loan of $250,000 or,
• Not Approve the loan and Old Billings Hardware Building Venture LP will have to secure other financing.

Fiscal effects of approving this loan would decrease the cash within the fund by $250,000.  The current balance of cash in this fund as of 8/21/2024 is approximately 2 million dollars.  The current interest rate is 7.5% and will change in October, based upon the published prime rate.