WORKSHOP ITEM - Erik Thorvig, Community Development Director
Title
KINGDOM BAKING GRANT REQUEST
Background
The property at 10130 Sunset Avenue is owned by Zongo Properties. The property is 23,087 sf. and consists of a vacant, dilapidated gas station. The owner received original approvals on March 3, 2016 and subsequent approvals on April 1, 2019 to construct a new bakery on the property. The project involves removing the existing building, constructing a new building and making various site improvements. The owner obtained a building permit on March 26, 2020 to allow for construction of the new building.
The owner has made a request to the city to purchase the property for $300,000 or provide a grant in the amount of $50,000 to assist in building demolition/site improvements. The city council discussed the property purchase requested in a closed session on June 8, 2020. A narrative has been provided by the property owner outlining the reasons for the request. The owner has indicated a grant in the amount of $50,000 will allow him to start the project.
Financing has been a continuous challenge for the property owner. Staff has worked with the owner since the original approval in 2016 on various financing options. Staff has offered the Blaine Small Business Loan Program along with providing him information on other financing/grant options through other entities.
The EDA/city council recently considered a similar request for the Fresh Picked Pizza project. In this instance, the business owner was requesting $72,500 in assistance for demolition and site cleanup. The EDA/city council approved a loan for this project. If there is interest in assisting the project, staff would propose a loan with similar terms.
Recommendation
Discuss the request and provide direction to staff and the property owner. Any loan or grant would require formal approval by the EDA in the future.