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Pittsburg Commission forgives final payments on Pitt State Foundation downtown loan after 3-2 vote amid conflict concerns
Summary
The City Commission approved forgiving the final two years of a $300,000 forgivable loan awarded to the Pittsburg State University Foundation for build-out of Block 22 retail/restaurant space. The vote was 3-2 after a commissioner raised concerns about fairness and a possible conflict of interest involving a local developer.
The Pittsburg City Commission on a March 2025 evening approved forgiving the final two years of a $300,000 forgivable loan to the Pittsburg State University Foundation for build-out of Block 22 restaurant and retail space, voting 3-2 to close out the agreement.
The loan was originally approved on March 13, 2018, to help with tenant-ready improvements — such as flooring, electrical and HVAC — for downtown spaces. The forgiveness schedule was later adjusted by the commission on Nov. 26, 2019, after project delays; the revised schedule moved the five-year forgiveness period to conclude in 2024. The item before the commission applied the final two years of forgiveness after the city determined the loan’s occupancy conditions had been met.
Why it matters: The loan used city taxpayer funds and was tied to a condition that the spaces be occupied by sales-tax-generating businesses. Commissioner Chuck opposed final forgiveness and said the arrangement was unfair to other local businesses and raised concerns about who negotiated lease terms when the space was vacant.
Commissioner Chuck said he had voted against the original loan and reiterated his objections at the meeting. “That was $300,000 of taxpayers money. I don't feel Sean should be in a position to negotiate with anyone whether they were not going to pay a lease for a year,” Chuck said. He added, “I voted not to approve this because [it was] unfair to the other businesses that were paying property tax, the sales tax.”
City staff and other commissioners described the loan as a forgivable assistance agreement intended to make a long-vacant space tenant-ready. Blake, a city staff member who presented the item, said the $300,000 covered structural and fixed improvements — not restaurant equipment — and that multiple spaces in Block 22 are now occupied and generating sales tax. Blake said the commission previously approved earlier years of forgiveness and that the current request would close out the agreement.
The commission moved the consent agenda with item C pulled for discussion; after debate and questions, Commissioner Doc moved to approve the forgiveness and Commissioner Stu seconded. The assembly voted and the motion carried 3-2.
The commission did not provide a public record in the meeting transcript of any formal investigation into the negotiation history between the foundation, tenants and outside parties. Blake said the city was not privy to those negotiations and that leases are between the property owner (the Pittsburg State University Foundation) and operators.
The commission’s action completes the city’s remaining obligation under the 2018 assistance agreement, according to staff remarks in the meeting.
Ending: Commissioners approved the staff recommendation to forgive the final two years of the loan. The commission did not order additional staff review of the negotiation practices discussed during public comment; the record shows the item concluded with the vote.
