Finance committee reviews $500,000 gap funding request for Mahoney National Bank redevelopment

The Finance Committee heard a request to help close a financing gap on an $18 million downtown redevelopment of the Mahoney National Bank building, which the administration said would convert upper floors into 71 market‑rate apartments and add retail and office space.

Kyle Myzak, a finance official, told the committee the developer has assembled most financing — state historic tax credits, senior lending, PACE financing and owner equity — but is short by roughly $500,000 and has asked the city to consider a site economic development grant to bring the project to completion. "They are asking if we could come along and assist to potentially get this project to completion," Myzak said.

The administration framed the request as catalytic downtown investment. Myzak said the city expects construction and new residents would generate income‑tax revenue and other economic activity that could repay the incentive, estimating a return on that investment within about four years. "The administration looks at the project as being a significant anchor to, again, hopefully jumpstart additional activity downtown," Myzak said.

Council members asked how incentive amounts are set. Staff replied there is no fixed formula and that each project is evaluated on its own merits, weighing projected return and overall impact. One council member argued the project could encourage other downtown redevelopments and said they supported co‑sponsoring the item for Council consideration; the clerk recorded a request for a co‑sponsor.

Committee members agreed to move the ordinance forward with other agenda items for full Council consideration later this evening. The committee did not adopt final grant terms or an agreement at the meeting; any incentive would require subsequent council action and specific documentation of conditions and repayment expectations.