2021-36 - Loan for historic preservation of Bi-Rite

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The proj ect entails the substantial rehabilitation of the entire structure including asbestos/hazardous material remediation; correction of all code violations; roof replacement; installation of a sprinkler/fire suppression system; and a new code -compliant elevator and staircase . Lead by Managing Member Jim Miketo, Little Jemmy has successfully acquired, rehabilitated, and leased more than $1 OM of real estate in the Cleveland area over the past two years including a partnership with Knez Homes to re -develop Glenville's iconic Hough Bakery Building. The following businesses have already committed to leasing space in,The hest. Lakewood's CDBG Ec6-no""' m�ic Developm+��nt Loan Fhnc The Economic Development Fund (EDF provides low and no interest repaid and forgivable loans to for businesses seeking to relocate tc or expand: their current operations in the City of Lakewood. Its primary goals are creating new, permaa�ent full -tune equivalent jobs, ,particularly for low -moderate income persons; stimulating redevelopment and revi�allzation; generating new ,income q4nd property tax revenue; upgrading the City's commercial and industrial ar 1 wilding tack; and enhanCM&Lakewood's regional competitiveness. The Nest CDB Economic Devel Oment F44d Loan Terms ■ 0% Inerest/No Payments ■ Forgivable over five (5) years a $30,000 per annum. ■ Forgiveness is predicated upon satisfaction of all EDF loan terms including timely project completion and fulfilment of the total and low -gym oderate income job creation and hiring goals described below. ■ To secure the Ciinvestment a $150,000 lien will be placed on 12501 Madison Avenue in the form of an Open -End Mortgage releasable over five (5) years in $30,000 increments predicated on fulfillment of all loan terms and conditions. ■ A Secured Promissory Note in the amount of $150,000 will also be executed with Little Jemmy, LLC. ■ Little Jemmy must obtain public and private financing commitments equal to total project costs minus the City's participation prior to issuance of CDBG Economic Development funds. ■ The expenditure of City loan funds is restricted to soft costs including architecture/design, legal, accounting, and historic tax credit consulting and other CDBG-eligible, City -approved fees directly associated with the funded Project. ■ Developer must submit invoices and proof of payment associated with totaling qualifying expenses in the amount of $150,000.