By Nick Nunn, Staff Writer
The Downtown Development Authority (DDA) voted in favor of a resolution for an acquisition loan to buy the Star Drug/NBC building at 150 West Washington Street, Madison. The loan principal will amount to $155,000 and an interest rate of no more than 3.75 percent will be negotiated for a one-year, interest-only loan. The DDA will put up an additional $5,000 in earnest money for the total purchase price of $160,000.
The building is being purchased as part of the city’s BoomTown Block Initiative.
“This is the project [the DDA] has chosen to show their commitment to downtown,” said Madison Planning Director Monica Callahan.
The DDA also approved a resolution for a $195,000 construction loan for the ongoing Depot project, which involves the relocation of the Central of Georgia Depot and the construction of a replacement building near its current location.
An interest rate of no more than 3.75 percent will be negotiated for the construction loan as well.
At the request of the City of Madison, the DDA also resolved to extend their Town Pak note until Madison will be able to take it over at the beginning of next year.
Madison was slated to take over the note for Town Park, which totals more than $1 million, in August, but the city inadvertently reached its cap when it renegotiated its sewer bond earlier this year.
The city’s extension, which will postpone the park’s transfer until Jan. 31, 2014, will give the city time to decide the best way to finance the park.
“We don’t want to put the city in a box,” said DDA Member Everett Royal.
Callahan stated that the extension will have no effect on the DDA and will require no new expenditure of funds.