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Aurora Capital Development Corporation approves $10,000 line amendment for PJ Limes loan
Summary
The Aurora Capital Development Corporation approved an amended loan note for PJ Limes, LLC that adds a $10,000 line of credit, new guarantors and a revised repayment schedule; part of the second advance is contingent on a certificate of occupancy from the city health department.
The Aurora Capital Development Corporation on March 11 approved an amended loan note for PJ Limes, LLC that renews the existing loan balance, adds new guarantors and creates a $10,000 line of credit to be advanced in two parts.
A staff member told the board the amendment is intended to align the loan documents with Lake City Bank’s expectations and to provide flexibility in advancing the new funds. "We're very close to being ready to close on the PJ Limes, LLC loan," the staff member said, adding the change will allow half of the $10,000 to be advanced at closing and hold the remaining $5,000 until the restaurant obtains a certificate of occupancy from the city health department and is open for business.
The motion presented to the board described the amended note as including the new $10,000 credit extension, a revised interest rate, an extended due date, and continued support by the collateral and security agreement dated March 12, 2020. The motion also noted that the original guarantor would remain and that new guarantors would include Henry Cruz II and Tiffany (last names not specified in the record); the record also referenced an individual named Sunny as a new guarantor.
Board members approved the amendment by voice vote; no opposing votes were recorded in the meeting transcript. A board member who spoke after the approval noted the borrowers may return for additional working capital as their operations ramp up.
Why it matters: the change provides short-term working capital and uses staged disbursement as leverage tied to the restaurant reaching operational milestones. The requirement for a certificate of occupancy from the city health department means part of the loan increase is contingent on a municipal permitting step rather than being immediately available.
The meeting then moved on; the Aurora Capital Development Corporation adjourned and planned to reconvene at 4 p.m. for the redevelopment commission meeting.
