Committee forwards $58,867 loan recommendation for YMCA building redevelopment to City Commission

A Sandusky boards and commissions committee voted to send a staff recommendation for a $58,867 Economic Development Assistance Program loan to the City Commission for renovation of the former YMCA at 2101 West Perkins Avenue.

City staff described the applicant (listed in materials as RDMJ DLLC) seeking support to convert roughly 10,000 square feet of the building into commercial and retail space, including filling in the former pools and creating four leasable areas. Staff said project drawings have been approved by the city’s building department and that Huntington Bank — not Savista as incorrectly listed in an earlier summary sheet — is the project’s lender.

Staff recommended a $58,867, 0% interest loan payable at the end of a five-year term, secured by a subordinate mortgage. Under the staff recommendation, the owner may request forgiveness of the loan if it meets the job-creation requirement described in the application (the materials state the higher of 2.5 FTE at the end of the term). Colleen, city staff, confirmed the loan represents roughly 8% of the estimated $648,000 project cost and that the loan is last-dollars-in and reimbursement-based.

Two of the spaces have a letter of intent from Life Out Loud, a regional service provider that serves youth and adults with special needs; staff said nearly 60 of Life Out Loud’s clients are Sandusky residents. Staff included multiple employment and revenue scenarios in the application: current-year estimates of about 30 new FTEs with $500,000 in sales revenue and $360,000 in payroll; year-one estimates of 30 FTEs with $1.5 million in revenue and $1.1 million in payroll; and year-three estimates of 40 FTEs with $1.9 million in revenue.

Committee members discussed whether program guidelines permit support for projects led by real-estate holding entities versus operating companies; staff said past practice varied and that residential projects are not eligible under the program. One member, Abby Bemis, said she had a conflict on the item and would not participate; Bemis recorded an abstention when the committee voted. On roll call, Michelle Reeder, Paul Cook, Allen Nichols and Melanie Murray voted yes; Bemis abstained. The motion to forward the staff recommendation to the City Commission carried.