Johnston approves $60,000 forgivable loan for proposed West Park medical office

The Johnston City Council on Tuesday approved Resolution 25-225 authorizing a $60,000 forgivable loan agreement with J4 North LLC to support a proposed 4,700-square-foot medical office in West Park.

City staff presented the project and the incentive recommendation, saying the developer, represented at the meeting by Mike Johnson, intends a total investment of at least $2,060,000 and the creation and maintenance of 14 jobs. Staff said the project sits inside the Northwest 100th Street urban renewal area and that the underlying TIF district is scheduled to sunset in 2028–2029, which prevents the city from offering the usual five-year TIF rebate. Staff proposed a three-year forgivable loan instead, with $20,000 forgiven each year, for a total offered amount of $60,000 calculated from projected TIF increment over five years discounted at a 6% rate.

During the public hearing, no members of the public spoke. Council members praised staff for structuring the incentive to fit the shorter TIF window. "I would like to commend city staff for their foresight and their problem solving on this matter," Council member Burkhart said during discussion.

The council voted to approve the resolution. Recorded affirmative votes during the roll call on the motion included Council members Martin, Ready, Burkhart, Cope and Evans. The resolution passed.

The agreement includes exhibits with a council-approved site plan and architectural elevations; staff noted the developer had completed those steps early in the process. The loan is structured as forgivable over three years; staff said the shorter forgiveness period was chosen because the TIF district sunset would not allow the standard five-year rebate schedule.

Council members and staff did not identify any other conditions or outstanding approvals tied to the loan in the meeting. The item closes the public hearing and records the council's approval of the forgivable loan.