TROY — Members of the Community Improvement Corp. met on Thursday to revise loan terms for the Sherwood project.
A clerical error needed to be revised from 1.5 percent to the approved 4.5 percent interest on the 20-year $500,000 loan. Auditor John Frigge apologized for the error. The CIC will receive 1.5 percent of the interest payment as part of its “pass-through” loan entity.
The board approved the revision.
Last May, Troy City Council unanimously approved legislation for a $1.4 million loan to the Community Improvement Corp. related to the Sherwood Shopping Center on Monday.
The two loans, totaling $1.4 million, will be made to the Community Improvement Corporation and then loaned to the developers, Sherwood of Troy. The loans are in the amount of $900,000, which would be a two-year loan with interest-only payments at 3 percent, and $500,000, for 20 years at 4.5 percent.
The developers plan to use the funds to obtain Sherwood Shopping Center and its outlots, located at 914-982 N. Market St. in Troy. Developers said the project is drawing interest from potential occupants, and future uses could include a restaurant in the center of the building, reviving the movie theater and a renewed business plan for Needler’s Market, which is currently a liquor and party store.
The total cost of the project is estimated at $2.3 million, including the purchase price of $1.7 million. The repair phase is estimated to cost $600,000.
Council also approved an ordinance to extend the Sherwood area’s zoning permit moratorium for another 180-days is also on the agenda. A moratorium has been in place since June 2017.
The CIC also made a motion to consult with city law director Grant Kerber to review and revise its by-laws, which haven’t been reviewed since its inception in 1971.