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

The Johnston City Council on Wednesday approved a $60,000 forgivable loan to J 4 North LLC to support construction of a 4,700-square-foot medical office in West Park.

City staff told the council the project represents a private investment of no less than $2,060,000 and said the developer expects to create and maintain 14 jobs. Staff said the loan amount was calculated by projecting 50% of the annual increase in property taxes (the TIF increment) over five years and applying a 6% net-present-value discount rate to arrive at a $60,000 offer.

“Our TIF district is scheduled to sunset in 2028–29, so a standard five-year rebate wouldn’t be fully available,” staff said, explaining why the city proposed a shorter, three-year forgivable loan. Under the agreement staff described, $20,000—or roughly 33%—would be forgiven each year for three years if the developer meets the agreement’s requirements.

Staff also said the developer, represented at earlier steps by Mike Johnson, has an approved site plan with architectural elevations included as exhibits to the agreement.

Council member Burkhardt praised staff for finding a practical solution amid the TIF timing constraint, saying the administration’s approach showed “foresight and problem solving.” After brief discussion the council moved, seconded and approved Resolution 25-225 on a roll-call vote.

The council did not receive public comment on the item during the hearing. The resolution records the council’s authorization for the mayor to execute the forgivable loan agreement with J 4 North LLC.