Laserfiche WebLink
Chairman Shachner made a motion, seconded by Councilmember Kepple to recommend <br /> adoption of Ordinance 26-2021 to the full Council. All in favor. Motion passed. <br /> RESOLUTION 2021-35 -A RESOLUTION to take effect immediately provided it receives <br /> the affirmative vote of at least two thirds of the members of Council, or otherwise to take <br /> effect and be in force after the earliest period allowed by law, authorizing the Mayor <br /> and/or her designee to enter into an agreement with STJS Holdings, LLC (Oster Services, <br /> LLC and Oster Services Commercial, LLC) for an economic development loan for a total <br /> amount not to exceed One Hundred Seventy-Five Thousand Dollars ($175,000), forgivable <br /> over five (5) years at Thirty-Five Thousand($35,000)per annum upon satisfaction of all <br /> terms of said Agreement, for the rehabilitation of the historic former St. James School <br /> located at 17514 Detroit Avenue, Lakewood, Ohio 44107 and adaptive reuse as an office <br /> building. (Referred to HPD 7/19/21) <br /> Director Leininger gave an overview of the St. James School project being proposed by Oster <br /> Services. The company is looking to turn the school into an office building, and eventually the <br /> rectory as well. The St. James campus was designated as a historic district 10 years ago. The <br /> property needs new windows, doors, and reconfiguration of the HVAC system. Oster has several <br /> business commitments as tenants, which will retain some businesses in Lakewood. Oster is <br /> requesting an economic development loan of$170,000, which is forgivable after 5 years. The <br /> total renovation project will cost$3 million, with most of it being financed privately. Discussion <br /> ensued on the loan's terms. <br /> As part of the economic development loan, Oster commits to retain or create 30 permanent FTE <br /> jobs within 12 months and keep them for 5 years. The loan will come out of the economic <br /> development account of the general fund, which is budgeted for $1 million annually. <br /> Chairman Shachner inquired why the company wanted to go forward with the project. <br /> Representatives from Oster noted that their company is outgrowing its current space and has <br /> been looking for places to settle for years. They also stated they would not back out of the <br /> project if they do not get the loan. They are looking to control increasing costs of the projects <br /> and to create affordable rents for tenants, which the loan will help do. <br /> Councilmember Kepple asked whether the city would accrue an interest rate on the loan if the <br /> terms of the agreement were not followed over the 5 years. Director Leininger agreed that there <br /> would be a default rate the city would earn on the loan. He also spoke to how the loan would <br /> apply to the division of hard and soft costs of the project. <br /> Chairman Shachner made a motion, seconded by Councilmember Rader to recommend adoption <br /> of Resolution 2021-35 by the full Council. All in favor. Motion passed. <br /> RESOLUTION 2021-36 -A RESOLUTION to take effect immediately provided it receives <br /> the affirmative vote of at least two thirds of the members of Council, or otherwise to take <br /> effect and be in force after the earliest period allowed by law, authorizing the Mayor <br /> and/or her designee to enter into an Agreement with Little Jemmy LLC for a Community <br /> Development Block Grant(CDBG) Economic Development Fund(EDF) Loan for a total <br /> 3 <br />