Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Council approves $150,000 city loan to Democracy Brewing to renovate former St. Joseph's building
Summary
The council approved a $150,000 interest-bearing, non-forgivable loan to Democracy Brewing to support renovation of the former St. Joseph's Church on Main Street; loan committee recommended approval despite underwriting concerns; vote was unanimous.
Lewiston's City Council voted to approve a $150,000 interest-bearing loan to RIA Group LLC, doing business as Democracy Brewing, to help finance renovation of the former St. Joseph's Church on Main Street into a brewery, restaurant and event venue.
The loan is structured as a $150,000, 3.0% interest, 13-year note with three years of repayment forbearance to allow the project to begin operations. Director Nate Libby told the council the company had already secured the bulk of project financing and that the city loan represented the final gap financing to complete a roughly $3.7 million project budget. Loan underwriting raised concerns about optimistic early-year cash-flow projections and the city's place as a subordinate creditor; the loan committee's unanimous recommendation for approval cited the applicant's operating track record and the community benefit of renovating a vacant historic building.
Libby said the underwriting and loan review were extensive: the city's contracted underwriter recommended denial, but the city's loan qualification committee's members (administration, finance, a council representative and an outside banker) voted unanimously to approve the loan. The committee concluded that the benefits of preserving and reusing the anchor Main Street building and the applicant's restaurant/brewery experience outweighed identified risks.
Council discussion noted both the renovation's potential economic spillover and the financial risk. The council adopted the order with a 7-0 vote (moved by Councillor Schittum; seconded by Councillor Nejean). Libby said the project anticipated construction beginning in July after final architect review and planning-board approvals.
Ending: The loan approval clears a final funding obstacle for the planned renovation; staff said they will finalize loan documents, monitor project milestones and return to the council if materially new circumstances require any change.
