Title
Resolution Authorizing a 9 Year Reduction to the Repayment Period on a $150,000 Forgivable Loan Provided to AZ Development, LLC for The Redevelopment of Properties at 120 W Lewis St and 215 W Lewis St and Elimination of a Multi-Tenant Use Restriction for the Property at 120 W Lewis St
Body
Council Priority: Create an Environment to Promote Economic Development Opportunities and Job Creation
Department: Planning
Council District: 2
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Reggie Delahanty, 373-4624
Contact 2 and Phone: Alan Andrews, 373-2602
PURPOSE:
The Planning Department requests that City Council reconsider the repayment period remaining for the $150,000 Urban Development Investment Forgivable Loan awarded to AZ Development, LLC. This request is based on review of documentation received of additional sales tax revenues and net new taxes paid for the property at 120 W Lewis St. Reconsideration is a provision of the forgivable loan contract that requires City Council approval. Additionally, it is requested that City Council approve eliminating a use restriction in the original loan agreement requiring 120 W Lewis St be utilized as a multi-tenant property. The use restriction that not more than one-third of the floor space of the building be used as a nightclub would not be eliminated as part of this request.
BACKGROUND:
AZ Development, LLC was awarded a $150,000 Urban Development Investment Forgivable Loan on November 11, 2015 for the renovation of the building at 120 W Lewis St. and revitalization of the property at 215 W Lewis St. The Company received the loan on April 13, 2016. The original repayment period for this loan is 17 years and was calculated based on anticipated net new property tax revenues from the forecasted improvements on the property.
The original terms of the contract stipulate that $8,823.54 is forgiven annually provided the Company fully meets its contractual obligations related to investment, job c...
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