Committee extends resolution deadline so Neighborhood Family Practice loan can close

The Cuyahoga County Economic Development & Planning Committee on April 14 advanced a request to extend the sunset date on a previously approved up-to-$700,000 loan for Neighborhood Family Practice, sending the measure to full council for second reading suspension.

Anthony Stella of the Department of Development told the committee the federally qualified health center will renovate 13027 Lorraine Ave in Cleveland — a 10,000‑square‑foot former CVS — to restore primary care, behavioral health, dental and pharmacy services to the neighborhood. The nonprofit expects 29 full‑time positions at the site, 13 of them new, and said pharmacy services will open later this year or early next year.

Stella said the loan was originally approved in December 2023 at a 3% fixed interest rate with an 11‑year term (one year interest‑only then ten years of principal and interest). He said underwriting relied in part on equipment collateral discounted to estimate resale value and that the project is now near closing after delays tied to an existing SBA loan that required consent and to staff turnover. "We just need to extend the date so that we can get authority to do so," Stella said.

Gina Gavlek, representing Neighborhood Family Practice, joined staff to answer committee members’ questions about the project’s services and funding streams. Committee members asked whether the project’s cost increases tied to inflation posed further risk; staff said the project is complete (with a ribbon cutting held March 27) and that final disbursement will occur well before the requested 12‑month extension would expire.

The committee voted to forward the resolution to the full council with a second‑reading suspension so staff can finalize loan documents and close the transaction.

Next step: full council consideration with second‑reading suspension to act on the extension and authorize final closing.