So yesterday was the ground breaking at Allied Drive, but do they have the $9M in financing I’m wondering if the timing of the groundbreaking was intentional. When we passed the agreement with the CDA to develop Allied Drive there was this little clause in the agreement:
7. Financing. The CDA will be responsible for procuring sufficient financing for the Project. The Cooperation and Development Agreement shall be null and void and of no further effect if the CDA fails to obtain at least $9,000,000 in firm financing commitments by August 1, 2008. The City’s financial contribution will be limited to its contribution of land to the CDA, demolition and public improvement costs outlined in item 6 above, and its credit backstop of the Fannie Mae revolving line of credit loan.
The fiscal note said the following:
The entire proposed redevelopment agreement would be contingent upon the CDA’s ability to obtain $9,000,000 of redevelopment financing by August 1, 2008. Currently, it is anticipated that $7,500,000 of this financing could be available from tax credit equity, with the additional $ 1,500,000 available through a first mortgage on the property and miscellaneous grant sources.
So, we know they got the tax credits from WHEDA in the amount of $7.5M but did we find the investors to purchase the credits and do we have the rest of the financing? I haven’t seen anything that says we accomplished that. It doesn’t necessarily mean that we haven’t, but if they got a grant or secured a loan you’d think we’d have heard. Hmmmmm.
