TROY — The city of Troy’s Loan Review Committee on Thursday approved Smith’s Boathouse Restaurant’s request for a new $125,000 loan.
With four members present, and Larry Smith, the restaurant’s owner, the committee reviewed and approved Smith’s request to build a larger bar area in the center of the Marina building. Members Jim Dando, J.C. Wallace, Shirley Snyder, William Wolke and Patrick Titterington were present.
The request will be reviewed by city council’s Finance Committee at a later date.
The loan will be from the Small Business Development (SBD) Revolving Loan Fund and will be for a 10 year period. Currently the SBD fund has $419,000.
Development director Jim Dando reported the request to the committee.
“The majority of the expense is converting the additional (bar) area,” Dando said. “This is projected to increase the business, particularly the bar area, to improve the cash flow of the business.”
Dando also recommended a six-month interest only payment so the work can be completed and cash flow will be sufficient to cover the increased debt load.
A contingency clause was also included to forgive up to $49,900 due to a permanent improvement to the Marina building, which the city owns. The loan forgiveness will be considered by the Loan Review Committee at a later date.
Director of public service and safety and committee member Patrick Titterington explained the proposed improvements such as ceiling, floor, heating and water improvements, will remain if Smith’s Boathouse were to cease operations and another tenant moved in, thus justifying the loan forgiveness request.
Smith said the current bar area is too small and will turn into a dining area for private parties. The projected cost of the renovation is $95,000 with $30,000 to replenish working capital needs of the business.
Smith said the current bar area gets crowded quickly and with the new bar, he hopes to attract a younger crowd to the business.
Smith requested another loan of $152,300 in 2016, which $13,349 has been paid thus far, according to Dando. If the second loan is approved, they will be combined for one payment. The request for that loan was for restaurant equipment and furnishings and other equipment.
The Community Improvement Committee, a separate entity, will review Smith’s request for a lease restructure for the Marina’s monthly rent.
The committee also elected Tom Kendall as chair and J.C. Wallace as vice chair for a term of one year.