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Council accepts up to $250,000 credit agreement with Alexander Foundation for downtown MBX site cleanup
Summary
Council voted 6-4 to accept a credit agreement of up to $250,000 from the Alexander Foundation to assist demolition, remediation or redevelopment of the former MBX property at 201 N. 1st Ave; loan has no interest for the first three years and can be prepaid without penalty up to Sept. 2028.
The Common Council voted 6-4 to accept a credit agreement of up to $250,000 from the Alexander Foundation to support redevelopment work at the former MBX property, 201 N. 1st Ave.
Council members spoke at length about the merits of accepting foundation support at an early stage. Opponents said accepting the money could be premature because due diligence, environmental analysis, and a clear redevelopment plan are still in process; some members preferred waiting until proposals crystallize. Supporters said the loan would be a useful bargaining chip for developers and could serve as matching funds for state grants to cover demolition and remediation costs.
Director Freifrick (City staff) explained the city has completed significant due diligence steps since acquiring the property, has winterized the site and removed utilities, and expects to pursue demolition and grant opportunities (including state idle-sites or brownfields programs). He said the loan agreement allows the city to return funds without penalty through Sept. 2028 and that no interest accrues in the first three years; a 5% interest rate would apply in years four and five and higher rates would indicate default thereafter.
A number of council members cited the Alexander Foundation''s long history of supporting local redevelopment and said the flexibility of the agreement makes it worth accepting now. The motion to accept the credit agreement passed 6-4.
