CRA 06/21/2012 Minutes - Laserfiche WebLink

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community Redevelopment Agency June 21, 2012 Page 2 of 6 been vacant for a significant time and is in a deteriorated state. He said that the building has gone through foreclosure and the current owner is interested in leasing the space. Mr. Martin said that the property owner entertained a proposal from Multi- Cultural Media Solutions; however, there was a gap between the tenant and the property owner in terms of finalizing the lease, Mr. Martin felt that this was a perfect opportunity for the CRA to step in to resolve that gap. Mr. Martin said the potential for Multi- Cultural Media Solutions is fairly strong in terms of their business model. He said they are on target to produce production videos, advertisements and a full gamut of video production in a new studio that would be created in this space. Mr. Martin said the proposal was to grant the property owner a $25,000 grant and a $50,000 loan so that the space could be brought up to leasable space including a new HVAC system and insulation. He said the State endorsed a program for cities to actually fund upgrades for energy improvements; however, there were issues between the federal and state government regarding that option. Mr. Martin stated that the CRA Board expressed a concern at the last meeting regarding the CRA going into the loan business. Mr, Martin stated that staff would like to provide an alternative plan involving BB &T Bank acting as the loan agent. Mr. Kyle Dudgeon, Planner, provided a PowerPoint presentation (a copy is attached and made a part of the minutes). Mr. Dudgeon introduced Ms. Carrie Duvall, BUT Business Deposits Officer for Public, Non - Profit and complex Deposits Solutions and Mr. Matt Freimuth, BUT Business Services Officer to the CRA Board. Ms. Duvall explained that the CRA would provide a $25,000 grant directly to the property owner and a deposit of $50,000 in a certificate of deposit at BUT for collateral for the loan to the property owner. Ms. Duvall said that the property owner would make monthly loan payments to BB &T and at every 12 month increment the bank would do a full loan review. She said that the bank would review the property owner's financial statements and look at the viability of the property. Ms. Duvall said there have been discussions regarding the property owner depositing the rent payments to an account at BB &T. She said at the 12 month period, assuming that 1/7 of the principal has been paid down, 1/7 would be paid back with interest to the CRA. Ms. Duvall said there are still some details that need to be worked out such as the administration fees.