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UEA tables $450,000 interim funding request tied to Sacred Heart Church redevelopment
Summary
The Urban Enterprise Association deferred action on a request to advance $450,000 to support a developer’s purchase of the former Sacred Heart Church property after members sought clearer repayment assurances, legal agreements and budget details.
The Urban Enterprise Association on June 17 tabled a proposal to provisionally provide $450,000 so a developer could close on the former Sacred Heart Church property to move forward with demolition and a housing project.
The chair described the request as temporary funding to allow the developer (identified in the meeting as Advantix) to purchase the site while the developer arranges tax-credit financing. The chair said the UEA would seek written agreements and coordinate with the city attorney and the UEA’s counsel, Matt Hagenau, before any funds move.
Members pressed for specifics about timing, repayment and security. A staff member said the UEA would seek a contractual loan agreement and that the funds would come from the association’s special economic fund, but the budget worksheet figure cited in the meeting was unclear in the transcript. Committee members voiced concern that if the developer could not sell tax credits the UEA might be left holding the balance, and they asked whether collateral or other protections would be required.
One committee member proposed structuring the transfer as a formal loan that, if unpaid, could alter the planned transfer to the redevelopment commission or otherwise be managed as a city-level issue. Another committee member said the arrangement raised complex legal considerations and favored waiting for a fuller plan and attorney review.
Because the board lacked the developer’s full plan and supporting documentation and because Craig Phillips (who would present further details) was attending another meeting, a committee member moved to table the request indefinitely. The motion was seconded and passed by voice vote. The chair said staff will request a detailed plan and legal documentation from Craig Phillips and suggested the board may convene a special virtual meeting or handle the matter electronically once adequate materials are provided.
Next steps: the UEA will ask the developer and city staff for a written repayment plan, draft loan/grant agreements and clarification of the special economic fund balance before it considers any funding action.
