RDA approves $250,000 revolving loan to help fund 85‑unit Fire Station Flats project

The Redevelopment Authority approved a $250,000 construction loan to General Capital Acquisitions to support construction of the Fire Station Flats mixed‑use affordable housing project.

Rebecca, a city staff member overseeing the brownfields and revolving‑loan programs, told the RDA the 85‑unit project (about 11 units targeted at households at or below 30% of area median income, with the balance intended for households between 31% and 80% of AMI) has an estimated total cost of approximately $31,100,000 and a financing gap of roughly $1.4 million. The developer requested a $250,000 loan at 2% interest over 20 years with repayment tied to project cash flow; staff said the borrower would contribute at least $50,000 in equity and defer some developer fees to help close the gap.

Staff said the city’s pandemic‑era revolving loan program (funded with state/local fiscal recovery funds) was established to support larger affordable housing projects and that loan terms mirror those used for prior projects: low interest (2%), 20‑year term and repayment from available cash flow, with security via a subordinate mortgage. Board members asked about matching sources, the relationship to other brownfields funding (cleanup grants and prior EPA awards), and whether staff or the RDA would select the cleanup alternative; staff responded that the city would provide oversight and that consultants and the developer would prepare the material management plan and seek DNR approvals.

A motion to approve the $250,000 loan was made, seconded and carried by voice vote; one member said they opposed but the motion carried.