TROY — The finance meeting OK’d the request for $126,875 from the city’s small business development revolving loan fund for a new bar area at Smith’s Boathouse Restaurant at the marina at Treasure Island.
The city’s Loan Review Committee, with four people present, OK’d the initial request last week. Larry Smith, an owner, said the loan would be used to install a new bar area in the middle of the restaurant to seat more than 60 people. The current bar area would be turned into a small dining area. The new bar area is expected to increase sales by 15 percent.
The loan repayment term is 10 years of monthly principal and interest payments with 3 percent simple interest. The first six months would be interest-only payments during construction.
The loan also includes a contingency clause to forgive up to $49,900 for the building improvements.
Director of public service and safety Patrick Titterington said the contingency clause would only include improvements that were made “strictly to the building that are neutral in terms of benefiting the restaurant versus just the building overall.”
“They are improvements that stay with the building,” he said.
Titterington said the restaurant has been profitable, but if they wanted to continue to grow the business an outside firm recommended to add the bar area to the middle of the building.
Committee member John Schweser asked if Smith’s Boathouse currently had a loan with the city. Titterington reported the restaurant does have another loan of $152,300 in 2016. That loan has had $13,349 paid thus far. The first loan request was for restaurant equipment, furnishings and other equipment.
Titterington said the two loans will likely combine at a later date.
Committee chairman Tom Kendall asked if the city had forgiven loans before.
“This is relatively unique,” Titterington said.”The consideration was made because it is our building so those improvements are staying with our building and not going into a developer’s bottom line if you will.”
Coleman-Allen-Saidleman building at 1-3 E. Main St. received $1 million in forgivable CDBG funding to Troy Community Works as a grant in 2017.
Committee member Todd Severt said he thinks the loan will help increase business and the loan would be improving city property.
According to Jim Dando, the city’s development director, the Boathouse Restaurant rent payments for 2017 totaled $32,740.43 and payments for the smaller part of 2016 were $6,200.
The city owns the Marina building at Treasure Island Park. The building underwent renovation in 2015 for approximately $959,000. Smith’s Boathouse Restaurant business opened in November 2016.
Emergency legislation is requested. The loan includes closing fees.