Discussion:
The EDA entered into a Purchase Agreement for over two acres in the Gateway West district to relocate Doggie Doos out of the redevelopment area on First Avenue to allow the River Bluff Development. As part of that, the city council approved a forgiveable loan agreement for $73,003.96 to assit them with the purchase of new equipment for their new facility.
Since that time, they have been through a number of contractors and their loan was delayed because of rising prices, interest rates and the shutdown of the Federal Government. The current overall development is now almost $2 million, about $400,000 above their original estimate.
They now have submitted for their building permit, which has been approved. They have a contractor on board and they have submitted a guaranteed construction price to their SBA lender for final approval.
Because of these delays, they have not been able to relocate. The river bluff site developer has been working on a redesign to include adjoining properties and will begin construction this fall.
As an incentive, the loan would be modified to provide Doggie Doos and additional $12,000 if they relocate off their current site by the end of August 2019. They currently pay $4,000 a month and the property has been cash flow positive after paying for a new roof and several exterior repairs. Basically, they would receive the last free months of rent that they paid only if they meet the deadline.