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Date
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July 13,
2009
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Agenda
Item No. 39 Roll
Call No. 09-
Communication No. 09-493 Submitted by:
Matthew Anderson, Economic Development Administrator |
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AGENDA HEADING:
Resolution to give preliminary approval for a Neighborhood
Commercial Revitalization (NCR) Program Loan in the amount of $100,000 for
renovations to 301 East Walnut Street, Des Moines, Iowa 50309.
SYNOPSIS:
Cosmopolitan Holdings, LLC, Angela Campbell, Managing
Member, 1006 42nd Street, Des Moines, Iowa 50312, is proposing to renovate the vacant
commercial building located at 301 East Walnut for commercial office space. Half the building will be occupied by Dickey &
Campbell Law Firm, with the remaining space made available as office suites for
lease.
FISCAL
IMPACT:
Amount: $100,000
Funding Source: The
NCR Loan Program is part of the Community Development Block Grant (CDBG) funded
Economic Development Financial Assistance Program, which is administered by the
City’s Office of Economic Development.
The proposed loan would be repaid with three percent interest over a
term of 20 years, and secured by a real estate mortgage on the properties
subordinate to the bank financing and the personal guaranties of the developer’s
principals. FY10
Operating Budget, Fund SP020, Org
CDD049900, Grant ID # CDBG2009049, page 68.
ADDITIONAL
INFORMATION:
Cosmopolitan Holdings, LLC has purchased the
commercial building located at 301 East Walnut Street, located in the East
Village Neighborhood. The developer proposes
to improve the property by doing extensive structural, facade and internal mechanical
renovations to convert the first floor from a former auto-related repair
facility, to commercial office use.
The developer has entered into a lease with Dickey &
Campbell Law Firm to occupy ˝ of the space, and will complete the remaining
space as office suites for general lease.
The renovations are expected to be complete with the building ready for
occupancy by January 2010.
The developer purchased the property for $300,000
and has contractor estimates for renovation at $450,000. The developer has bank financing in place
that will provide $570,000 to finance acquisition and improvements, and is
requesting financing under the NCR program for $100,000 to complete the
proposed renovations.
PREVIOUS
COUNCIL ACTION(S): NONE
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
Approval of loan documents
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,