TO: Mayor and Members of City Council
THRU: Kristoff Bauer, Deputy City Manager
FROM: Cynthia Blot, Economic & Community Development Director
DATE: February 25, 2019
RE:
Title
Consideration to Waive Interest Penalties
end
COUNCIL DISTRICT(S):
Council District(s)|109|
b
Relationship To Strategic Plan:
Goal 1: Safe & Secure Community
Goal 2: Diverse and Viable Local Economy
Executive Summary:
The property, 442 S. Eastern Boulevard, is located in an Opportunity Zone and has attracted investment for redevelopment. The City's current assessments on the property totals $290,463.77, which includes $87,554.77 in interest penalties.
The current owner, Lender RH Fund XIV, LLC, has contacted the City with a request to waive the accrued interest totaling $87,554.77.
The Lender has an interested buyer and acknowledges the original assessment amount cannot be waived or reduced, but that the City has discretion in reducing interest penalties.
Total investment from borrower is reported to be $1,400,000.00
Investment includes: acquisition of property, site improvements, and construction of a new 5,000 sq. ft. facility. A total of 8-10 new FTE's will result in the development,
Buyer agrees to pay the City of Fayetteville's original assessment amount, all back taxes, and outstanding liens.
Benefits to the City:
The property has sat abandoned for several years and is an eyesore on a major commercial corridor. The property will become revenue producing and create 8-10 FTE.
Purchase contract has been executed.
City will collect assessment fees, and back taxes.
Property Address: 442 S. Eastern Boulevard, Fayetteville, NC
Parcel# 0437-90-7308 See attached Schedule "A"
a/k/a Budget Inn Tract I & II
Lender/Owner: RH Fund XIV, LLC
c/o Bell Davis & Pitt
P.O. Box 21029
Winston-Salem, NC 27120
Background:
Budget Inn was owned and operated by Prakash Patel and Daxaghen Patel.
Prakash Patel and wife Daxaghel Paten...
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