Council committee backs subordination agreement to enable buyer financing for 8 Harllo Street

Community Economic Developer Anne Greg briefed the Business & Economic Development Committee on 8 Harllo Street, a city‑encumbered property with liens and a development agreement that includes a reverter clause. Greg said the current owner has sought buyers for years and that Pike Development — a local developer with past projects on State Street and Hammond — proposes a $2.2 million loan to buy and renovate the building.

Greg said city attorneys drafted a subordination agreement that would allow the lender to obtain financing while the city's reverter clause stays in place. City solicitor Dave explained in public session that the subordination would permit the financing to go forward and "the reverter clause stays in place," and that a fuller discussion of the reverter clause's valuation and risk would be more appropriate in a follow‑up conversation.

A committee member asked about the track record of Pike Development; staff said the firm has worked with the city previously on façade and historic tax credit projects. When asked about the risk if a project later failed, the solicitor said the subordination's intent is to allow financing while preserving the city's statutory rights and that detailed valuation issues could be discussed offline.

A motion to move staff recommendation for the subordination agreement was made, seconded and advanced by the committee in open session; no roll‑call tally was recorded in the public transcript.

Staff will file the subordination agreement and take the item to council for final action and any additional legal review.