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Chairman Shachner asked how the $2 million gap resulted in the project. The developers stated <br /> that they are professionals in the finance and tax fields and that they put together a complicated <br /> capital stack to finance the project due to its unique nature. The stack includes their own equity, <br /> funds from the Small Business Administration, and relies on Erie Bank monetizing proceeds <br /> from Lakewood's TIF. They noted that their personal equity in the project will exceed $1 <br /> million. <br /> Discussion ensued regarding the boards and commissions processes that the projects would go <br /> through and whether they would drive up project cost. It was noted that the developers plan to <br /> pursue federal and state historic tax credits, and that those would be the real drivers of any <br /> increased project cost due to potential preservation requirements. <br /> The timeline of the Fieldhouse was discussed, with the expectation that the demolition work <br /> would be completed within the next week and that the financing of the project would be <br /> complete by the end of the month. The developers have tenants ready to go for the Phantasy <br /> along with programmed venue spaces, however that project and timeline will be more complex. <br /> They added that Phantasy construction documents are in process and that they are preparing for a <br /> historic tax credit application to the state. They noted that without the TIF financing they would <br /> not be able to move forward. <br /> Councilmember Bullock suggested looking to the state capital budget for funding. Ms. Figgie <br /> stated that they are trying to piece together as many free sources of funding that they can to <br /> reduce the cost of capital. That is the only way the projects' small businesses can afford the new, <br /> high quality space. The amount of deferred maintenance in the buildings was inferred to be <br /> substantial. <br /> Public Comment: Sean McDermott—1490 Arthur Ave. Mr. McDermott stated that the city <br /> must be very careful in its use of tools to incentivize redevelopment. We added that the $S million <br /> cap of the TIF seemed to be a bit much and that the city would be in effect giving away the taxing <br /> authority of 9 other entities who have 0 involvement in the process. He concluded that he does <br /> not oppose this particular project and advocated that the passing of reduced rents to tenants is <br /> made part of the formal TIF agreement. <br /> Ms. Figgie stated that the actual project cost of the Fieldhouse is closer to $12 million and that <br /> the TIF would fund less than 10% of the project cost. Mr. Budish and Ms. Figgie state the <br /> Phantasy will likely cost$20 million in total and that the TIF filling the million-dollar gap in the <br /> project is critical. <br /> Chairman Shachner made a motion, seconded by Councilmember Kepple to recommend <br /> Ordinance 22-2021 for adoption by the full Council. All in favor. Motion passed. <br /> ORDINANCE 23-2021 -AN ORDINANCE to take effect immediately provided it receives <br /> the vote of at least two thirds of the members of Council, or otherwise to take effect at the <br /> earliest period allowed by law, authorizing the City of Lakewood, Ohio to accept title to <br />