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

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Read & referred to HPD 7/19/21 Bullock, Keppler Utt(;M, Jeff, O'Malley. R(,I et - .RESOLUTION NO.2021-36 BY: Shachr-ior A RESOLUTION to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be in force after the earliest period allowed by law, authorizing the Mayor and/or her designee to enter into an Agreement with Little Jemmy LLC for a Community Development Block Grant (CDBG) Economic Development Fund (EDF) Loan for a total amount not to exceed One Hundred Fifty Thousand Dollars ($150,000), forgivable over five (5) years at $30,000 per annum upon satisfaction of all terms of said Agreement, for the substantial rehabilitation of the former Bi-Rite Building located at 12501 Madison Avenue, Lakewood, Ohio 44107 and the structure's adaptive reuse as retail and office space. WHEREAS, as an authorized use of the City of Lakewood's entitlement allocation of federal. CDBG dollars, the EDF was established and approved. by Lakewood City _Council on December 2, 1996 to promote business investment and redevelopment in Lakewood for the purpose of creating jobs, generating new tax revenue, providing for physical improvements, and enhancing the City's regional competitiveness and attractiveness as a location for new businesses and the expansion of existing businesses, and; WHEREAS, 12501 Madison Avenue, acquired for $750,000 by Little Jemmy LLC in October 2019, has been vacant and abandoned for several years and is obsolete in its current, dilapidated condition, and; WHEREAS, while structurally sound, the building requires substantial rehabilitation, including correction of code violations, to achieve its highest, best, and most productive use, and; WHEREAS, Little Jemmy LLC has requested financial assistance for the substantial rehabilitation of the entire structure including asbestos remediation; correction of code violations; roof replacement; installation of a fire suppression system; a new elevator and staircase; and other significant improvements which represent a total permanent investment of more than $4,000,000, and; WHEREAS, substantial state and federal Historic Preservation Tax Credits secured by Little Jemmy LLC to support the project require adherence to the Secretary of the Interior's Standards for the Treatment of Historic Properties which promote best practices that protect the community's irreplaceable cultural resources, and; WHEREAS, this transformational real estate development project will fully rehabilitate and adaptively re -use a significant, historic, long -vacant property to its highest and best use; generate significant income and property tax revenue; and both complement and fortify the significant ongoing investment of public and private resources in the revitalization of the Birdtown Historic District.