TROY — The historic Coleman building is up for sale and a local non-profit organization has requested an $850,000 loan from the downtown building loan fund to purchase and renovate the historic building.
On June 17, the Troy Downtown Loan Committee approved an $850,000 loan for Troy Community Works to purchase and renovate the 1-3 E. Main St. building, which was best known as the David’s Shoe Store until 1998. The request will then be reviewed by city council.
The building is now vacant and is need of many repairs, including a new roof, safety upgrades such as a fire suppression system and an elevator.
The loan is a 30-year conventional loan with 0 percent interest and 20 percent deferral up to five years or when the building is occupied.
The purchase price of the building is approximately $200,000. The remaining loan funds would be for renovations for both the interior and exterior of the historical building.
Plans include upgrading the first floor store front and adding office and/or apartment spaces on the second and third floors.
Jim Dando, development director, said the state looks at entities with inactive funds and could possibly collect the funds if they are not in use.
“They placed Troy in what they called a ‘stagnant’ category because of our economic development revolving loan fund, which last had an active project in 2009. That’s how we got labeled that way,” Dando said.
Troy’s Community Development Block Grant program currently has $855,000 in available funds, but is replenished with payments approximately by $168,000 per year, officials said.
“The funds are continuing to come back in,” Dando said.
Board member Mayor Michael Beamish expressed concern that the large loan request would not leave funds for future projects.
Dando reported the city has nearly $385,000 in its own small business loan fund that is not federally funded for future city project requests.
The board, including Beamish, president of city council Marty Baker, director of city public service and safety Patrick Titterington and Troy Main Street board president Will Harrelson approved the loan last week. J.C. Wallace was not present.
The loan will be reviewed by a council committee before moving to the city council’s agenda.