Title
Resolution to Amend the Security and the Sequence of Payments for the Two Million Dollar Forgivable Loan Made to Self-Help Ventures Fund for the Purpose of Redevelopment of the Renaissance Shops at Phillips Avenue (Bessemer Shopping Center)
Body
Department: Legal
Council District: 2
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Tom Carruthers, City Attorney, ext 2320
Contact 2 and Phone: Chris Wilson, Assistant City Manager, ext 2002
PURPOSE: To amend the security and the sequence of payments for the two million dollar forgivable loan made to Self-Help Ventures Fund (Self-Help) for the purpose of redevelopment of the Renaissance Shops at Phillips Avenue. This will permit Self-Help's wholly owned subsidiary, SHVF Renaissance, LLC, (SHVF) to qualify for New Market Tax Credit financing which will assist in completion of the shopping center and will lower rents for tenants at the shopping center.
BACKGROUND: Self-Help owes the City $2 million on a forgivable loan which requires successful completion of the Renaissance Shops at Phillips Avenue pursuant to the terms of the loan. SHVF has guaranteed this loan and provided to deed of trust on the property to secure this loan. SHVF has requested that the City agree to the release of the guaranty and deed of trust provided by SHVF. Self Help and SHVF have secured a commitment from Wells Fargo Bank for an investment of an additional $2,102,660 through a new market tax credit financing structure pursuant to Section 45D of the Internal Revenue Code, which will allow SHVF to receive total loans and investments in the shopping center, separate from the City of Greensboro loan, of $6,050,000. Self-Help will provide the City a collateral assignment of its rights as the leverage lender in connection with a leverage loan of $4,096,340 under a proposed new markets tax credit (NMTC) financing to SHVF for development and construction of the shopping center.
This collateral ass...
Click here for full text