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Council keeps door open for 'Blazing Paddles' pickleball hub but asks developers to demonstrate $1M working capital; sets price at appraised $1.445M
Summary
Council expressed support for the Blazing Paddles proposal for 8901 N. 56th St. but, citing a Fishkind financial review, asked the Courtside Group to return with $1,000,000 in working capital before a sale closes; council also set the listing price to the appraisal of $1,445,000.
The City Council on Dec. 2 signaled continuing interest in a proposed pickleball and hospitality project, Blazing Paddles (Courtside Group LLC), for the city‑owned parcel at 8901 N. 56th St., but asked the prospective buyers to demonstrate increased working capital before a purchase proceeds and set the property’s listing price at the appraised value.
City staff summarized due diligence: the city retained Fishkind Consulting (Hank Fishkind) to review the Courtside Group’s financial plan and BlueMark Valuation Advisors to appraise the property. Fishkind’s review recommended the developer secure (1) a firm SBA loan commitment, (2) evidence of $1.8 million of equity as in their plan, and (3) increase working capital to $1,000,000 because of limited operational experience and a modest opening‑day cash cushion.
Representatives of the Courtside Group acknowledged Fishkind’s concerns but said their model used conservative construction estimates, expected an SBA loan with an 18‑month repayment grace period, and anticipated 6–8 months of working capital coverage from existing equity plus contingency. They said they could consider additional equity rounds, partnerships or operational hires with restaurant experience to mitigate risk.
Vice Mayor Schisler and other council members voiced concern that undercapitalized restaurants and food‑and‑beverage operations often fail and that the city could be left with an empty shell. After extended discussion the council voted to remain interested in the proposal but requested the applicant return with proof of $1,000,000 in working capital before proceeding to a sale. Later in the meeting the council voted to adjust the property listing price to the appraisal of $1,445,000.
Council members and staff discussed protective contract terms (escrow, clawbacks, performance milestones) and the practical limits of clawback remedies if an operator fails after substantial investment. Broker John Lochner noted a prior rejected $1.8M offer had been declined for policy reasons (affordable senior housing that used live‑local tax exemptions).
