City postpones decision on loans for distressed property

• Tweet
• 

Mount Pleasant City Commissioners again tabled a decision Monday on loans for distressed property.

The commission postponed the transfer of $100,000 to the city’s Downtown Development Authority to loan money for purchase of distressed, or unoccupied, property along Mission Street.

Commissioner David McGuire said he felt uncomfortable approving the transfer, noting the lack of enforcement language in the proposal may complicate the city’s efforts to get its money back.

“The whole idea of postponing this was to make sure our ducks were in a row,” he said. “It sounds to me that all the research hasn’t been done.”

Commissioners postponed the transfer at a meeting Feb. 8, citing economic times the city is facing. On the same day, the commission approved $300,000 to be transferred for low-interest business loans along Mission for facade and site enhancement and new operations.

Rich Morrison, director of Community Services, said there are no prospective buyers of any of the distressed properties, including the former Roosters Restaurant, 1329 S. Mission St.

“I don’t think we’ve made a commitment on the funds,” he said.

The proposal states, “As there may be additional parties with an interest (loan) in the property purchase component, we are working on the remedy that will best protect the city’s funds. As there may be additional parties with an interest (loan) in the property purchase component, we are working on the remedy that will best protect the city’s funds.”

City Manager Kathie Grinzinger said the city had not drafted the loan language yet.

“The work that is remaining is the loan documents … including penalties for not paying,” she said.

McGuire said the uncertainty of repayment is too risky for approval.

“‘Likely’ and ‘working on’ sounds like they’re not done,” he said.

“If we don’t have anyone standing around for it, why rush it?”

Commissioner Kathy Ling initially voted the transfer down and vowed to do the same Monday, saying zero-interest loans may not be the way to stimulate business along Mission Street.

“There has been a fair amount of research that says they’re not as (helpful),” she said. “I’m just not sure it’s worth the risk.”