Mayor asks council to extend repayment on Genesis Building loan; seeks to use tenant income-tax rebate to retire $140,000 balance

Mayor Biasea told the finance committee that the city's 2015 economic-development loan for the Genesis Building (ordinance 82-2015) has an unpaid balance of $140,000 and that the owner is asking to extend the original repayment schedule.

"Between the slowing in the office market and KA Architects going out of business, the property was vacant for a little bit, but Genesis has now been able to land a new tenant," the mayor said, identifying the new tenant in the transcript as "Servo Mortgage." He said the owner wants "no new money" and is asking to extend the repayment terms so 50% of the new tenant's income tax is rebated toward the loan principal under the original terms and the repayment period is extended to 12/01/2029.

Mayor Biasea said the original loan was $300,000 and that Genesis currently owes about $140,000. He requested committee passage so the council could consider an emergency amendment to ordinance 82-2015 on the November 25 agenda to ensure the item is decided before the loan's scheduled final payment date.

Council members asked clarifying questions about who is party to the contract (the deal was made with Genesis, not the tenant), the timeline for payback, and whether the city would provide any new funds. The mayor reiterated the administration's position: there is no new appropriation; the extension relies on the tenant income-tax rebate and would require full repayment by December 1, 2029, or else the remaining balance would be due immediately.

The finance committee voted to put the amendment to ordinance 82-2015 on the next council agenda as an emergency.

The measure will return to the full council for final action; no additional funding was allotted during committee discussion.