As a result of recent talks between the two organizations, Brinson said GTI has negotiated a purchase agreement with Epic Ministries to purchase the building that will require $150,000 at closing, with an additional $50,000 to be funded out of proceeds from the capital campaign.
That, he said, is where the loan request by GTI comes in.
As GTI does not currently have the necessary capital to purchase the building on its own, Brinson noted that a loan from the Redevelopment Commission would allow the group to make good on its purchase agreement and thus keep the building from being sold to an organization that perhaps does not have the best interests of the historic theater in mind.
The commission agreed, and the request for the $150,000 loan was approved unanimously. A breakdown of the particulars of the loan agreement is as follows:
• Loan amount: $150,000
• Interest rate: 3 percent
• Amortization schedule: 15 years
• Deferred payments: first two years
• Balloon payment: after six years
With the purchase agreement between GTI and Epic Ministries now in its final form, Brinson said final approval by both organizations is expected to occur within the next couple of weeks.
However, Brinson noted that under the terms of the agreement, closing is contingent upon completion of a phase one environmental assessment, the results of which should be available by the end of March.
Once those are in and deemed satisfactory, Brinson said closing is expected to occur shortly thereafter.
“It just seems like a win-win,” said Commission Vice-President Vince Turner of the request. “This is a downtown landmark. It’s a really solid group of proven people who are putting this together. It’s an opportunity for us, even with a nominal interest rate, to get more of a return on our current funds than we are now. It just doesn’t seem to have a downside.”