City approves four‑year loan to Blue Saint Lucie LLC to advance Sunrise Village affordable housing

On Dec. 1 the Fort Pierce City Commission approved a resolution authorizing a four‑year, interest‑only loan to Blue Saint Lucie LLC to support the Sunrise Village affordable housing project.

City staff and the finance director described the loan as a four‑year, interest‑only facility with annual interest payments (reported at about 6.5%) and a balloon payment of $460,000 due at maturity on Dec. 31, 2029. The city will subordinate its interest to TD Bank (the primary lender) and fund the loan from reserves in the general fund. Legal staff and outside counsel confirmed loan documents, including promissory note and mortgage, were in form and reviewed.

Commissioners discussed risk and monitoring. Finance said there is no prepayment penalty; attorneys and staff said the documents were reviewed by city counsel and outside counsel and would include standard mortgage and note protections. Proponents said structuring the support as a loan rather than a grant allows the city to record a receivable and expect repayment while enabling the applicant to qualify for state tax credits and close the financing.

The commission voted to approve the resolution authorizing the loan and to direct execution of the loan documents as presented.

Why it matters: The loan is intended to unblock a financing constraint and let the developer pursue state tax credits and other financing that will produce 106 affordable housing units in the city; the city’s exposure is a subordinated loan secured by project collateral.