Committee moves $2 million Carriage Company loan to full council for second reading

Cuyahoga Countys Economic Development & Planning Committee voted on Feb. 3 to move a proposed $2,000,000 economic development loan for the Carriage Company redevelopment to the full county council for a second reading.

Matthew Carey, Department of Development, presented the proposal for 2168 West 25th Street, saying the locally owned developer MRN proposes to convert a vacant industrial building into 129 apartments, 8,500 square feet of office space and 5,500 square feet of retail. Carey said at least 50% of the residential units would be affordable at 100% of area median income (AMI); Carey reported the local AMI he checked that morning was $97,000. Carey described financing that includes the county loan of $2,000,000 at a 5.5% interest rate over a 17-year term (two years interest-only followed by 15 years of fully amortized principal and interest), participation by Erie Bank and Huntington Bank, federal and state historic tax credits, PACE financing and a state Brownfield grant.

Carey said a third-party appraisal estimated the building value at $28.9 million and determined a loan-to-value ratio of about 75.1%, within the countys 90% LTV policy. He also said there would be a corporate guarantee from JapSure QOF 1 LLC and a personal guarantee from Jory Maron, subject to net worth and liquidity requirements.

Committee members asked about rent ranges and retail absorption downtown; Carey said the appraisal indicated sufficient demand to absorb the units but the precise rent schedule was not confirmed in the transcript. Council members asked that the guarantees and key loan terms be incorporated into the final legislation; County Council staff said they will work with the law department to prepare a proposed substitute so the guarantees are reflected when the item goes to full council. The committee moved the resolution to full council for second reading by voice vote.