Consent 1.F.
Regular City Council Meeting
- Meeting Date:
- 11/14/2011
- TITLE
- Approval of Downtown Revolving Loan Fund Recommendation for the Harman Building Renovation
- PRESENTED BY:
- Patrick M. Weber, Finance Director
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The Downtown Revolving Loan Committee met on September 13, 2011, and gave conditional approval of a loan to Steven and Joni Harman. The Harmans met all conditions required by the committee and an email vote was taken on October 17, 2011. The loan was approved by the committee.
The Harmans will be renovating the building located at 2511-2613 Minnesota Avenue (old Kitchen Gallery building). Leases with four tenants have already been secured. The cost of the renovation will be $487,000 with the Downtown Revolving Loan Fund financing $100,000 and Western Security Bank financing the remainder. The Revolving Loan Fund will be subordinate to the Bank's loan.
The Harmans will be renovating the building located at 2511-2613 Minnesota Avenue (old Kitchen Gallery building). Leases with four tenants have already been secured. The cost of the renovation will be $487,000 with the Downtown Revolving Loan Fund financing $100,000 and Western Security Bank financing the remainder. The Revolving Loan Fund will be subordinate to the Bank's loan.
ALTERNATIVES ANALYZED
If Council does not approve the loan, completion of the project may be difficult and the building could remain vacant.
FINANCIAL IMPACT
The loan fund will have a balance of $700,000 after this loan and the pending DB Squared LLC loan.
RECOMMENDATION
The Downtown Revolving Loan Fund Committee recommends Council approve the loan to Steven and Joni Harman up to $100,000.