Consent 1.G.
Regular City Council Meeting
- Meeting Date:
- 11/14/2011
- TITLE
- Approval of Downtown Revolving Loan Fund Recommendation for the Yellowston Garage Building
- PRESENTED BY:
- Patrick M. Weber, Finance Director
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The Downtown Revolving Loan Committee met on October 26, 2011, and approved a loan to DB Squared LLC.
DB Squared will renovate the second floor above Ciao Mambo's restaurant in the Yellowstone Garage building into office space. The building is located at 2303 Montana Avenue. The Downtown Revolving Loan Fund will finance $250,000 and Western Security Bank will finance $938,500. The Revolving Loan Fund will be subordinate to the Bank's loan.
DB Squared will renovate the second floor above Ciao Mambo's restaurant in the Yellowstone Garage building into office space. The building is located at 2303 Montana Avenue. The Downtown Revolving Loan Fund will finance $250,000 and Western Security Bank will finance $938,500. 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's second floor could remain vacant.
FINANCIAL IMPACT
The loan fund will have a balance of $700,000 after this loan and the pending Harman loan.
RECOMMENDATION
The Downtown Revolving Loan Fund Committee recommends Council approve the loan to DB Squared up to $250,000.