Council committee reviews loans from transformation fund to finish Terminal Building and back downtown restaurant plan

A finance committee discussion at the Aurora Committee of the Whole on March 4 reviewed proposed city loans and amendments intended to finish the Terminal Building’s ground‑floor commercial space and to support a restaurant tenant, chef Jamie Gilmore.

The proposal discussed would use money from the city’s transformation fund to make two city loans: a $200,000 loan to Urban Equity Properties (the building owner) and a $250,000 loan to restaurateur Jamie Gilmore (operating as LJ Hospitality Group) to finish the shell and kitchen for a restaurant the parties referred to as Lizzie Jays. Chris Minnick, Aurora’s chief financial officer, told the committee the loans are being structured as receivables in the transformation fund, with Urban Equity’s loan earning about 5.5 percent interest and the loan to Gilmore paid from pledged sales‑tax and food‑and‑beverage tax receipts at 3.75 percent. Minnick said loan repayments are expected to begin March 1, 2026, and modeled payback periods of roughly nine to 10 years.

The transformation fund was described as the source of the incentives. Minnick said the fund originated from a $16 million recapture payment tied to development near Eola Road and I‑88; council allocations left about $9 million set aside to make revolving loans and incentives for economic development. Minnick said the city has already earmarked other portions of the original $16 million for regional economic alliances, historic preservation and façade work, and that the loans under discussion would be receivables on the city’s books that return principal and interest to the transformation fund.

Developer Urban Equity and chef Jamie Gilmore described their roles. David Debo, the city’s director of economic development, summarized the proposed deal: Urban Equity would contribute additional equity toward the building, the city would take loans as described above, and Gilmore would put capital into tenant improvements. Jeff Orduna, chief operating officer for Urban Equity, and Justin Fern, Urban Equity principal, described the building’s long vacancy on the ground floor and the extra construction costs that arose during COVID and later. Orduna said Urban Equity previously invested about $2.8 million in the project and is proposing additional investment; he said the new incremental work to fully finish the restaurant would cost roughly the $900,000 package described in the meeting (developer equity plus city loans plus a $50,000 finish‑line grant referenced by staff).

Gilmore, who described her restaurant business (LJ Hospitality Group) and sales projections, told the committee the tenant expects about $35,000 in monthly revenue initially at the Aurora location and projected first‑year revenue of roughly $1.5 million once full service and a bar are operating. Gilmore confirmed a personal guaranty for the loan; staff said she offered a personal guarantee that includes her home as collateral in case the pledged tax streams prove insufficient to cover debt service.

Council members asked about schedule, historic‑preservation reviews, lease and rent terms, prevailing wage obligations and default remedies. Chris Minnick and project representatives said historic preservation reviews add time; staff and the developer said the target opening window is late 2025 into early 2026, with repayment modeled to start March 1, 2026. Justin Fern said the proposed lease for the tenant is a 10‑year commercial lease with monthly rent near $3,500. Aldermen asked whether the original redevelopment agreement contemplated a white‑box finish for the ground floor; staff and the developer said the original work was intended to produce a partial white box and that additional funds were always expected to complete tenant improvements.

Outcome/status: the loan and redevelopment amendment (agenda item 25‑0182) was discussed at length in finance committee and returned to be placed under unfinished business for further formal action at a later council meeting. No final council approval was recorded in this transcript segment.

Why it matters: staff framed the deal as an example of using the transformation fund to catalyze downtown private investment, preserve active ground‑floor retail and attract an experienced operator; council members pressed on timing, repayment security and neighborhood impacts.

Aldermanic questions, staff clarifications and developer responses about cost escalations, historic‑preservation timelines and repayment mechanics dominated the discussion and will inform final council consideration.