By Sam Wildow
TROY — The Troy City Council committees met on Tuesday with the Finance Committee providing recommendations on Small Business Development (SBD) loans to council.
The Finance Committee recommended moving forward with an SBD loan application from Smith’s Boathouse Restaurant, LLC that would assist with improvements to the city-owned Treasure Island Marina building located at 439 N. Elm St., Troy. The loan, if later approved by council, would combine two existing SBD loan balances into a new loan, as well as increase the amount by an additional $30,000.
According to the city memorandum, Larry Smith, owner and operator of Smith’s Boathouse Restaurant, LLC, leases the city-owned property at 439 N. Elm St., and he proposed adding awnings to the front and rear patio deck area of the building at an estimated cost of $60,000. Smith requested a loan of $30,000 to assist in the funding of this improvement. Smith noted the awnings will be for restaurant customers who choose to sit outside.
Smith additionally requested that his two SBD loans, which were used for leasehold improvements and restaurant equipment, also be restructured into the new loan.
Patrick Titterington, director of Public Service and Safety, noted on Tuesday that one of those loans is due in six years and the other is due in eight years. The new loan those loans would be combined into would be a 10-year loan at 3 percent interest. To restructure both loan balances totaling $158,017 and adding $30,000 would create a new loan amount of $188,017, according to Titterington.
Councilman and member of the Finance Committee Todd Severt asked for future clarification on how the city determines the interest rates for SBD loans, adding he thought the Boathouse is “one of the jewels of the community.”
“Larry’s project is a wonderful project,” Severt said.
The Finance Committee also made the recommendation to council to move forward with an SBD loan application regarding the Masonic Temple. The application was from Sam O’Neal and Doug Ernst, owners of 107 W. Main LLC, who purchased the property at 107 W. Main Street known as the Masonic Temple in 2020.
According to the city memorandum, the owners have been renovating the exterior and interior of the building, including the first and second floors, as well as the basement. The first floor has two of four commercial spaces already leased, and the second floor will have up to nine residential units.
With an anticipated total project cost of over $2 million, the applicants are seeking a $100,000 SBD loan to assist with the build out. They are expecting the project to create between 50-60 jobs within two years after completion, according to Titterington. The loan repayment term would be for 36 months with a 2.5 percent interest rate.
These items have not yet been approved by the council. The Troy City Council will meet at 7 p.m. Monday.
