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Council adopts memorandum to let Downtown Renaissance loan $80,000 to Epstein Properties pending bank financing
Summary
The council approved a memorandum of agreement allowing Downtown Renaissance to loan $80,000 to Epstein Properties as working capital with the city to reimburse DRI from grant reimbursements once payable; council and staff noted the deal is contingent on the private bank construction loan.
The Rocky Mount City Council voted to adopt a memorandum of agreement that will allow Downtown Renaissance Inc. (DRI) to loan $80,000 to Epstein Properties to be used as working capital during a planned renovation.
According to staff remarks, the loan from DRI would be repaid as the city releases grant reimbursements to Epstein Properties; interest would be the responsibility of Epstein Properties. Councilman Blackwell moved adoption and Councilman Joyner seconded; the motion carried by voice vote.
City staff and Mr. Varney said the arrangement is contingent on the private bank issuing a construction loan. Councilman Harris asked whether the bank had issued a qualified commitment letter; Mr. Varney said he had not seen such a letter and that the plan is for the two loans to occur simultaneously.
Why it matters: the MOA is intended to bridge a funding gap so the Epstein building renovation can proceed. The council approved the city’s participation in the reimbursement structure but did not itself originate the private construction loan.
What remains: staff said DRI would vote on the same item at its board meeting the next day and that completion of the private bank financing is a condition precedent to the MOA’s practical effect.
The council recorded no roll-call vote in the transcript; the approval was recorded by voice vote.
