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Board gives tentative approval for building-improvement loan to Kai Cuisine, contingent on bank recommendation
Summary
The DDA gave tentative support for a Main Street, Inc. building-improvement loan (up to $18,000 requested) so Kai Cuisine can replace its roof; approval is contingent on Choice One Bank credit recommendation and LDC signoff.
The Lapeer City Downtown Development Authority voted June 24 to give tentative approval for a Main Street, Inc. building-improvement loan to Kai Cuisine (also referred to as Kintai) to replace the restaurant’s roof. The owner requested up to $18,000 while the program cap is $25,000; staff said the applicant's quote is below that amount but asked for wiggle room.
Staff explained that the loan account is managed through Choice One Bank and that the board typically takes a second-lien position while the bank remains first lien. Because the DDA has built-up interest in its loan fund, staff said the DDA could make the loan without drawing on its line of credit; final approval is contingent on the bank’s credit recommendation and a recommendation from the Liberian/LDC management body.
Board members voted to support the loan contingent on receiving the bank credit approval and the LDC recommendation. The motion passed.
