TROY — The City of Troy Loan Review Committee approved the submission of two Small Business Development Revolving Loan Fund applications during its meeting on Tuesday. The loan requests will be submitted to Troy City Council for final approval.
The first application was presented to the committee by Tim Davis, assistant development director for the city of Troy, on behalf of applicant Wade Westfall, owner of Four Sons Development LLC.
Westfall’s application requested $250,000 to finance the repair and update of the interior and exterior facade of the recently acquired building at 8 S. Market St., the former location of U.S. Bank, which is set to be opened as a banquet facility upon completion of improvements.
“Mr. Westfall is pretty familiar with the Historic District requirements,” Davis said. “He owns several properties in downtown; he’s actually invested over $3.5 million in the various properties and he has five previous loans with the city for eight buildings; this would be a sixth loan for a ninth building.”
Davis noted two of Westfall’s older loans have been paid off and another, for property at 12 S. Market St., is nearing pay-off. The overall loan total of $365,224 has been paid down to around $211,000, so far, Davis said.
Westfall has also secured funding through Greenville National Bank in the amount of $720,000 to go toward the remodel of 8 S. Market St., and has offered the city a second position on the mortgage as collateral.
Davis added that the expected prospective improved market value of the property has been appraised at $1.5 million.
The terms of the SBD loan request included a loan repayment term of 240 months, 4.5 percent interest and principal payments, and six months of interest-only payments.
The second application was presented by Gregg Harris, of the development department, on behalf of applicant Connor Haren, owner of Haren’s Market.
The application requested $125,000 to fund the remaining construction balance for purchased property at 2 E. Main St., which is set to be opened as a meat retailer, grocer, and eat-in deli upon completion of renovations.
According to Harris, the property was purchased by Haren, with city of Troy financial assistance, in October 2018, using Chacres LLC as the real estate company. The Harens have since made equipment purchases, and planned renovations are more than halfway completed.
Harris said the current debt structure on 2 E. Main St. includes four loans, two of which were assumed from the previous owner — one 18-year city loan of $113,845 and one 5.5-year city loan of $20,143 — along with a 30-year city loan of $100,000, which went toward the purchase of the property, and a $48,000 loan through Abbey Credit Union.
According to Haren’s loan request application presented Tuesday, since commencement of construction in February, Haren’s Market has been working with an out-of-town lender, Cooperative Business Solutions, to fund the project. Due to “technicalities,” the funding has not been closed on. This has led Haren to seek other means of financing to cover the remaining construction balance.
“(Haren) is seeking the remaining of the construction project, which is about $125,000 out of the $300,000 construction budget; $175,000 of that came from his own pockets,” Harris said.
The combined total project expenses from the building purchase, equipment, and renovations is approximately $875,000. Haren’s total equity in the building purchase and renovations is 39.41 percent.
Haren’s application presented Tuesday proposed a 4 percent fixed 30-year term loan with one year of interest-only payments. However, the committee made a recommendation to submit the request to council as a 20-year loan with 4.5 percent interest.
Harris noted that Haren contracted with local construction company Level MB, and renovations are on schedule to be completed by July.
The committee unanimously agreed to pass both requests to be submitted for approval by city council.
Reach the writer at 937-552-2205.