Board approves storefront makeover funding

Published 10:30 am Thursday, September 18, 2008

Funding for a Cooperative Response Center expansion project? Yes.

Funding for an Austin Main Street Project storefront renovation? Yes.

Downtown fire sprinkler program funding? No. Not at this time.

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The Austin Port Authority Board of Commissioners held a regular quarterly meeting Wednesday in council chambers at Austin City Hall.

Jim Hurm, the APA’s executive director, submitted a request for CRC for a $200,000 loan to assist in financing a major expansion project.

According to Hurm, CRC wanted approval of the request before an upcoming meeting of its board of directors.

Hurm said the investigation of the request revealed the $200,000 loan from the APA could be made for a period of 10 years at an interest rate of 4.2 percent.

The commissioners expressed support of the request. Larry Maus called it a “good project” that fulfilled the APA’s mission to encourage the growth of local businesses and industries.

Jerry McCarthy, APA chairman, liked the prospect of 15 new jobs being created when the expansion project is completed.

APA commissioner Norman Hecimovich made the motion to grant the loan and Jerry Morhfeld seconded it.

It was pointed out the APA’s approval would be “preliminary” only.

A separate motion expressing that tentative endorsement was also made and both were approved.

As early as July 22, CRC contacted the city’s community planning director Craig Hoium about securing finance assistance for the expansion project.

As part of the proposed expansion, CRC wanted to purchase land and build a 17,000 to 22,000 square foot building.

Craig Byram, vice chairman of the AMSP board of directors, and Sarah Douty, AMSP’s coordinator, pitched another downtown storefront renovation project.

This one is slated to take place along North Main Street where the Innovision eye care clinic is located.

The total project cost for the storefront makeover is $88,000.

With a 50 percent easement amounting to $44,000 and $15,000 from a Hormel Foundation forgivable loan, that left a $59,000 APA subsidy for the work and the owner to pay $29,000 of the total amount.

According to Byram and Douty, the APA’s share would amount to 67.05 percent of the project, and the building owner’s share would be 32,95 percent.

“This project follows all guidelines,” Byram said, “Our board of directors approved the request Sept. 11, when they met.”

Byram said the project follows a path of storefront renovations done by AMSP, beginning with the First National Bank (former Austin Area Chamber of Commerce) building and moving north along Main Street.

Mohrfeld made the motion to approve the AMSP request and Brian McAlister, vice chairman, seconded it.

The motion was unanimously approved.

Byram said each downtown storefront examined by AMSP reveals an architectural treasure underneath. “Each one we look at we find positive things,” Byram said.

Hurm also updated members on an effort to encourage fire prevention measures in older downtown buildings.

The program was recommended by Fire Chief Dan Wilson, who told the APA they would have to be the funding source for sprinkler improvements.

The program has not been approved for implementation and is still widely debated by the APA.

At Wednesday’s meeting commission member Michaell Bednar raised more questions.

“Does this type of investment fit within the scope of the Port Authority?” Bednar asked.

Hurm told her a portion of the APA’s portfolio of funds is earmarked for downtown uses.

Bednar said the responsibility for upgrading fire sprinkler systems “belongs to the buildings’ owners.”

Hurm countered by saying if the APA would make money available for the improvements, it would be in the form of a loan and “we would get our money back.”

Commission member Larry Maus said Bednar had asked an “excellent question.”

He also said by assisting in financing fire sprinkler improvements in downtown buildings, “We are protecting our investment in those buildings’ renovations.”

Bednar agreed, but said helping a few property owners in downtown Austin could open the flood gates to more requests from business owners elsewhere.

Byram, an attorney, pointed out a court ruling had already determined fire PERA retirement funds could not be used to loan money for fire safety improvements.

He also said protecting the AMSP “assets” was necessary because the buildings were old and connected to each other in the North Main Street area and, therefore, vulnerable to a fire emergency.

The discussion ended without action.

Hurm said he just wanted the APA commissioners to be kept apprised of the developing situation and was not seeking any specific action at this time.