TEXARKANA, Texas - During a meeting Monday, the City Council will take up loaning developers of the former Texarkana National Bank building downtown an additional $500,000 and commit another $80,000 for on-site environmental monitoring.
The city would loan the money to Texarkana Renewal Properties LLC from Environmental Protection Agency cleanup funds to finance abatement of toxic materials such as asbestos inside the building. The loan would follow similar loans and grants totaling $510,000 used for exterior abatement and rehab at the building and its parking garage a block away.
"Exterior abatement was necessary during Phase I of the project to enable the borrower to apply for state and/or federal historic designation; thereby, opening more funding streams for the redevelopment of the project.
"Completion of environmental abatement will encompass two Phases and this second loan an amount up to $500,000 will help to cover the cost of the second Phase with the end result being the bank building abated and shovel ready for redevelopment, preserving historic elements, improved Downtown air quality and moving our EPA RLF (Revolving Loan Fund) Program in line for additional funding," a summary published as part of the meeting's agenda states.
Calling the loan "high risk," city staff recommend providing the funds with safeguards in place.
"Due to the complexity and multiple phasing of the development and financing plan, this loan is considered high risk. However, this development is important to the City's continued support of downtown revitalization efforts and the development is located in a federally qualified Opportunity Zone. Furthermore, the developer has a positive track record with other downtown properties. As a result, staff recommends approval," agenda materials state.
The loan would have a 12-year term, with no interest in the first year, interest only due in the second and third years, and principle and interest due in years four through 12. The interest rate would be set at the 10-year treasury rate plus 1%.
The developers must follow all city building codes and EPA terms and conditions.
The city would withhold 10% of each payment requested "as a retainage until any EPA Agency or Lender required closure reports are received and approved by the Agency."
The developers "will secure a $20,000 contingency fund in a checking account at Commercial National Bank to be applied to the last abatement invoice in the event a shortfall exist or will be returned to the borrower if all cost are covered."
The developers must also collaterally assign rents and leases at the properties, execute a personal guarantee for the loan and a guarantee of completion, and "provide additional letters of financial commitment and an updated proforma after abatement is complete and prior to redevelopment beginning."
Other business
The Council will also conduct public hearings and vote on a number of zoning and permitting requests related to proposed development:
rezoning plots in the 5600 block of Richmond Road to allow construction of a car wash and convenience store and on approving a site plan for the project;
amending a site plan for construction of an unattended fueling station on a plot on Chelf Road between Pansy Street and Collom Street;
amending a site plan to allow a building addition at 4824 McKnight Road; and
a site plan amendment to allow building a drive-through lane and pickup window at McAlister's Deli, 5001 Cowhorn Creek Road.
The Council will also hold a public hearing and vote on establishing a 25 mph speed limit for segments of Galleria Oaks Drive, Christus Drive and Sam Warren Drive in the vicinity of Pleasant Grove Elementary School on school days.
It will also vote on a resolution that would recognize the Texarkana Arts and Historic District Committee as the official advisory body for the downtown Texarkana Cultural District and allow the city manager to appoint a staff representative to the committee.
The meeting is scheduled for 6 p.m. Monday at City Hall, 220 Texas Blvd., and will be livestreamed through the city's website, ci.texarkana.tx.us.