DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: District 5
SUBJECT:
Amendment to Economic Development Loan Agreement for Peanut Factory Lofts and its assignment to 939 S Frio Street LLC
SUMMARY:
This Ordinance approves an amendment to the Chapter 380 Economic Development Loan Agreement with South Frio Development LLC for the Peanut Factory Lofts Project at 939 S. Frio in Council District 5, and its assignment to 939 S Frio Street LLC, as prospective purchaser of the project, per the terms of agreement.
BACKGROUND INFORMATION:
The Peanut Factory Lofts project is a mixed-use development at 939 S. Frio in Council District 5 and the Westside Tax Increment Reinvestment Zone (TIRZ). It includes the redevelopment of the former Birdsong Peanut Factory into 102 rental apartments and 2,868 square feet of retail/commercial space. The project officially opened in December of 2014.
As a housing project in the downtown area, the project received financial assistance from the City through the Center City Housing Incentive Program and through a Chapter 380 Economic Development Loan in the amount of $400,000. The loan was granted to offset the costs of environmental remediation on a 0.7922-acre property that the City sold to the developer to incorporate into the project.
The $400,000 loan was to be forgiven over 10 years based on the number of housing units that were leased to students. Per the agreement, 10% of the loan would be forgiven for each year where at least 49 housing units were leased by students. This student housing condition was based on a recent study which indicated a need for student housing in the area based on the proximity of nearby colleges and universities.
ISSUE:
The developer, South Frio Development LLC, is requesting an amendment to the Economic Development Loan Agreement to reduce the minimum student housing requirement to more accurately reflect actual student housing dem...
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