Cypress Development, the lead developer behind the embattled downtown parking garages has requested an additional $2.5 million dollars from the MAGIC Fund to complete the project. Here are the details from the agenda for next week’s MAGIC Fund screening committee meeting. View the full application here. And, Mayor Barney has released his quarterly letter. In it he addresses this issue. Read it here.
The Minot Area Development Corporation (MADC) has submitted a MAGIC Fund application in amount of $2.5 million necessary funding for the completion of two parking ramps and retail projects that supports redevelopment of Minot’s downtown. The application informs the projects will create 27,000 square feet of retail space, 450 parking spaces and provide the foundation for residential units of which 20% will be affordable housing. The MAGIC Fund request is the result of working with Cypress Development, City Officials, MADC leadership and Wells Fargo to come up with a solution that ensures the parking ramp projects can be financed to completion with comprehensive funding including a construction loan and forgivable loan from the MAGIC Fund.
Requested Terms:
$1.5 Million Forgivable Loan:
- No interest loan, with a 10-year maturity date. Repayment at year 10 on balances outstanding, if any.
- $375,000 of the loan would be forgiven upon substantial completion of the Renaissance parking ramp.
- $375,000 of the loan would be forgiven upon substantial completion of the Central Avenue parking ramp.
- $375,000 of the loan is to be forgiven upon substantial completion of the Renaissance commercial space.
- $375,000 of the loan is to be forgiven upon substantial completion of the Central Avenue commercial space.
$1.0 Million Loan (component to satisfy requirement by Wells Fargo for total City commitment):
- Interest at 1% per annum, with a 10-year maturity date, repayment of principal and interest at year 10 (i.e. $1,100,000).
The application states the construction of these facilities will spur a redevelopment and more importantly the revitalization of Minot’s downtown core district. It is the opinion of MADC that any community in its lifecycle has but one opportunity to rebuild its downtown area and in doing so will revitalize its downtown to a truly economic engine. The application says it is Minot’s time and place to take its opportunity forward by supporting this MAGIC Fund request. The memo from MADC is attached along with a Parking Structure & Retail Project
