· Related development
Council approves a City loan of up to $1 million to the LGC for the garage retail space
The City Council voted 4:1 to approve a loan agreement under which the City would lend the Amarillo Local Government Corporation up to $1,000,000 to finish out and begin operating the retail portion of the downtown parking garage, with interest at the 10-year Treasury yield plus 2% and principal due by June 1, 2032, payable from retail rents. The 2016/17 budget included the money. Councilmember Randy Burkett voted no.[1][2]
Mark NairElisha DemersonBob Cowell Jr.
What the sources say
- ✓ Verified
The April 18, 2017 agenda item described a loan of up to $1,000,000 from the City to the Amarillo Local Government Corporation 'for the purpose of finishing out and initial operation of the retail portion of the downtown parking garage,' said the 2016/17 approved budget included up to $1,000,000 for this purpose, and said the LGC would consider the agreement on April 19, 2017.[1]
- Max principal
- $1,000,000
- ✓ Verified
The draft loan agreement set interest at the 10-year U.S. Treasury yield plus 2% on the execution date, fixed for the life of the loan; made principal due on or before June 1, 2032; provided that interest be paid from retail rents 'if available' and that unpaid interest be added to principal; and pledged retail rental revenues as security, subordinate to existing LGC bond obligations.[1]
- ✓ Verified
The agreement's recitals state that the LGC had incurred an obligation to fund approximately $20 million for the garage with retail/mixed-use space and that its accrued funds and anticipated revenues 'may not be sufficient,' creating a need for the City loan, to be repaid by future rental of the retail space.[1]
- ✓ Verified
On a motion by Councilmember Mark Nair, seconded by Councilmember Lisa Blake, the council approved the agreement 4:1, with Mayor Paul Harpole and Councilmembers Blake, Elisha Demerson and Nair voting yes and Councilmember Randy Burkett voting no. The minutes record Nair saying the council needed to continue funding what was previously agreed, Bob Cowell saying none of the finish-out money would be used until there was a signed lease, and Burkett saying the City was obligated to build the garage under the agreement.[2]
- ✓ Verified
During public comment, one speaker said finish-out of the garage retail space should be done by tenants, and another asked whether the loan to the LGC included interest.[2]