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Heath okays incentive package and ground lease for proposed Reserve restaurant '18/80'
Summary
Heath City Council approved an incentive and ground‑lease package on Jan. 14 for '18/80', an upscale restaurant proposed for Lot 1A of The Reserve, including a 5‑year purchase option at $500,000 and a $500,000 milestone‑driven 0% loan to support construction.
Heath City Council and the Heath Economic Development Corporation (HEDC) approved on Jan. 14 an incentive package and ground‑lease framework for an upscale restaurant prospect branded ‘‘18/80’’ to be located on Lot 1A in The Reserve.
Key terms presented
- Land/lease: Lot 1A, area replat of 1.639 acres; ground lease at $25,100 per year for years 1–5, with an option to purchase the lot for $500,000 at the end of year 5. If the tenant does not exercise the purchase option, the rent steps up to marketed levels with adjustments in later years. - Construction loan: HEDC to provide a $500,000 0% loan that will be disbursed against verified hard‑construction costs on a milestone basis (progress draws tied to invoices and inspections). The EDC will hold a security interest in improvements. - Repayment: The loan would be repaid from 2.5% of gross (or contract‑defined net) sales; if not repaid by an agreed term, the EDC’s security interest is enforceable. - Economic impacts presented: the prospecting team projected roughly $3.25 million annual sales (presented as ‘‘3 a quarter 1000000’’ in staff slides) and estimated an annual sales‑tax contribution to the city in the hundreds of thousands; staff noted 70–80 on‑site jobs would be created.
Rationale and safeguards
EDC members framed the package as a measured public‑private approach: the EDC and the Heath Municipal Benefits Corporation retain control of the land until the prospect demonstrates operational viability, the loan is milestone‑driven and inspectable, and sales‑tax reporting will provide ongoing transparency. Staff and EDC counsel said construction invoices would be reviewed and approved before funds are released; city staff will coordinate inspections and verify work.
Council action
On second reading the council approved the economic development assistance agreement and the ground‑lease framework; the record shows the motions carried and the EDC board had previously voted to recommend the incentives. Council and EDC leaders said the project is intended to activate the reserve’s commercial core and create a destination dining option.
What to watch next
The applicant must finalize design and obtain all permits; staff must implement the milestone reimbursement and reporting protocols described in the agreement. The council asked the EDC and staff to maintain close oversight of disbursements and to return to council for any material changes.
