Loans through the city Community Development Block Grant program were approved earlier by the city to help TCW after it purchased and rehabbed the building that in 2010 was destined for the wrecking ball. The first floor was finished and rented to two businesses, but the second floor was not improved as part of the project.
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TCW has paid $648 monthly on the city program loans but asked for forgiveness of a $171,265 balance so it could qualify for a $220,000 bank loan to redo the second floor.
Kent Frauenberger of TCW said the requests were being made because the organization had a signed lease by someone who wanted to rent a second floor apartment. The apartment and office spaces were proposed for the second floor.
Loan Review Committee members asked a number of questions about the project as well as a larger project being undertaken by TCW to buy and redo the Coleman/Allen building at 1 E. Main St. on the Public Square. The building is known as the former long-time home of David’s Shoes. The city council in 2015 approved a forgivable loan that totaled $1 million to TCS works for that project.
Committee members Tom Kendall, a city councilman, and John Frigge, city auditor, asked what progress had been made on the 1 E. Main St. building following the purchase.
Local architect Mike Twiss of TCW said that project has taken considerable time to pull together because it involves state and federal funding and tax credit requests, but added rehab plans are ready.
“It takes time … We are nearing the finish line,” he said. “I think we will get it done. We just have to push through a few little things.”
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The committee was told $350,000 of the $1 million has been spent on the purchase and the architect plans for renovations of the three floors. Twiss said someone is interested in leasing the first floor of the building for 10 years with renovations, but declined to be more specific. Renovation costs are estimated at $2.2 million with $1.5-$1.6 million still needed.
Frauenberger asked the committee to look at the two projects — 1 E. Main and 221 E Main — separately.
Committee member Patrick Titterington, the city’s service and safety director, contended the loans were good use of grant dollars. He said the state and federal agencies granting the funds to communities have in recent years required communities to use the money granted, not allow it to accumulate.
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“The rationale is we are putting money back into downtown even if as a forgivable loan,” Titterington said.
He also noted TCW is the only nonprofit community development corporation in the city so similar requests for forgivable loans weren’t likely.
Titterington made the motion to recommend the city council approve the TCW request for the loan for the 221 E. Main St. building. A second was not offered by other attending committee members – Frigge, Kendall and Bill Wolke. Without a second, the request could not move forward.
Frigge said he was interested in learning more about the projects from TCW representatives in a meeting that would not be public.
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