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Council approves 24-month deferral of Pizitz loan payments to aid food-hall retenanting
Summary
Birmingham's City Council authorized a consent and ratification enabling a 24-month deferral of payments on a $3.2 million HUD 108 loan tied to the Pizitz Building, allowing the developer additional time to retenant and rebrand the food court after COVID-related declines.
The Birmingham City Council on Tuesday approved a resolution consenting to a 24-month deferral of loan payments owed by Pizitz, LLC to the City of Birmingham Downtown Redevelopment Authority for approximately $3.2 million in HUD 108 financing originally made in 2015.
Developer David Silverstein told the council the deferral is intended to give the Pizitz food hall breathing room to rebrand, attract new tenants and carry out improvements after the COVID downturn reduced foot traffic. “We need to rebrand and remarket the food hall component…we did not receive any PPP money. We haven’t asked the city for funding,” Silverstein said.
City staff clarified the action does not obligate new city dollars. “There’s no new money that is obligated to this project. We’re just extending the terms of the loan agreement,” a staff member said.
Council members asked about the reason for the deferral and the loan’s annual debt service. A developer or staff response to council questions put the approximate annual debt service on the note at about $200,000.
The resolution’s formal text approves and authorizes a consent and ratification form under which the city evidences consent to a 24-month deferral of loan payments on the HUD 108 loan to Pizitz, LLC. After discussion the council approved the resolution.
Council action: resolution approved; no new appropriation or grant funds were added by the action.
The developer said he would pursue retenanting (including non-food retail) and event activations to increase downtown foot traffic; city officials said they would coordinate follow-up and monitoring of the loan terms with the Downtown Redevelopment Authority.
