Heath council approves EDC agreement and land sale for 1880 Kitchen, tying loans to construction milestones
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Summary
Council unanimously approved agreements enabling Troubadour Food and Beverage LLC to buy 1.639 acres for $500,000 and receive a two-part loan package up to $400,000 (a $250,000 0% construction reimbursement loan and a conditional $150,000 reimbursement if the restaurant opens by Dec. 31, 2027); EDC will retain second-lien status and require financial reporting.
The Heath City Council unanimously approved an Economic Development Corporation agreement that allows Troubadour Food and Beverage LLC (the 1880 Kitchen project) to purchase 1.639 acres for $500,000 and receive a two-part incentive loan that can total $400,000.
EDC chairman Michael Zelenskus summarized the revised terms: an upfront $500,000 purchase, a $250,000 zero‑percent loan tied to hard construction costs and reimbursable invoices, and an additional $150,000 reimbursement available if the restaurant obtains its certificate of occupancy and opens by Dec. 31, 2027. “Provided that they have the property open by December 31, 2027, they would be eligible for basically an extra $150,000 of immediate reimbursement,” Zelenskus said.
Zelenskus told council the arrangement moves the project to a net-positive cash flow position for the EDC compared with the original structure, shifts taxes and sales-tax payments to occur earlier, and leaves the EDC in second-lien position behind the bank. He said the EDC has rights to audit reimbursed costs and will require ongoing financial and revenue reporting for the life of the restaurant.
Council members asked about timelines, job creation and downside risk. Zelenskus said the EDC expects more than 70 jobs in the first year and that some contract dates will be amended at signing. When asked what would happen if the restaurant failed before loans were repaid, Zelenskus said the EDC would rely on its lien rights: “We would have the right to secure our loan via lien on the property… If the property went into foreclosure, then that would be at risk,” he said.
Councilman Omi moved to approve the agreements; Councilman Dodson seconded. The council voted unanimously to approve the EDC agreement and related sale and loan terms. The project will still be subject to normal city permitting and inspection processes before construction and opening.
