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Fort Pierce authorizes four-year loan to Blue St. Lucie LLC to support 106-unit Sunrise Village affordable housing project
Summary
The commission approved a four-year, interest-only loan from city reserves to Blue St. Lucie LLC to support the Sunrise Village affordable housing project; terms include annual interest payments and a balloon payment due Dec. 31, 2029, with the loan subordinated to the primary TD Bank lender and monitoring by city staff.
The City Commission on Dec. 1 approved Resolution 25-R-79, authorizing a four-year, interest-only loan from city reserves to Blue St. Lucie LLC to support the Sunrise Village affordable housing project.
City management summarized the loan: a four-year term with interest-only annual payments and a balloon principal payment (about $460,000) due on Dec. 31, 2029; the interest rate discussed in the meeting was reported around market levels and there is no prepayment penalty. The loan is subordinated to TD Bank as the primary lender. Finance staff said the loan will come from the city's reserves/general fund and that the developer expects to repay earlier if state tax-credit timing or other financing allows.
City Attorney Miss Hedges said the loan documents, promissory note and mortgage had been reviewed by staff and outside counsel and that the PD agreement and mortgage documents were delivered to the clerk. Commissioners discussed risk, subordination and the city's monitoring responsibilities; the commission voted unanimously to approve the resolution.
What happens next: Finance and legal staff will monitor loan payments and compliance; the developer must meet financing conditions for state tax-credit and construction closings and the city will be notified if corrective action is required.
