The Austin Port Authority unanimously approved a request for a sprinkler system loan for Steve’s Pizza during its Wednesday meeting at the Austin City Council chambers.

Steve’s Pizza owner Steve Davis is the first applicant to request a sprinkler system loan to the port authority, which in March, 2007 approved using up to $200,000 to loan out at low or no interest to downtown businesses for electrical and sprinkler system upgrades.

The port authority approved a 10-year loan for up to $45,000 for Steve’s Pizza at an interest rate of 3 percent.

While city administrator Jim Hurm said the request was for no interest, several port authority members agreed there should be some kind of interest.

“I don’t really feel comfortable with zero interest,” Commissioner Jerry Mohrfeld said.

“There should be some token interest rate,” Commissioner Larry Maus added.

After discussion, the commissioners settled on the three percent interest rate, which as of Wednesday was a quarter of a percent below the prime interest rate.

“It’s a pretty good deal for him; we’re trying to help him out,” Maus said.

Steve’s Pizza is in the process of moving to 421 North Main St. from its current 215 Second Ave. N.E. address to make way for the new jail and justice center.

The sprinkler request comes only a few weeks following one of the biggest downtown fires in Austin history.

In January, several businesses and apartments were destroyed when a fire ravaged portions of the 400 block on Main Street.

At the March, 2007 port authority meeting where the sprinkler loan funds were approved, the risk of a downtown fire was discussed.

“Many of the downtown buildings are 80-plus years old, and if they catch fire, we will be talking about trying to save a block and not just a building,” the minutes state.