Hercules Redevelopment Agency had hoped to gentrify an area in town, but is falling $13 million short.
Now, the city council is investigating ways to secure an additional bank loan to complete the project. The only catch is that before they can qualify for the loan, the value of the property must increase.
If they applied for a loan on the current gap, it would leave the total debt on the property at more than 60%, or a level so high that no bank is likely going to approve the money.
The current city manager, Charlie Long, has an idea.
From the Contra Costa Times:
Hercules’ Sycamore North project is running out of money, less than halfway to completion, officials say.
The Redevelopment Agency’s mixed-use project, with 96 mostly affordable homes above stores in two buildings along Sycamore Avenue west of San Pablo Avenue, also will end up costing about $13 million more to develop than anticipated, interim City Manager Charlie Long said. Sycamore North broke ground in May 2009 and is scheduled for completion in October 2011.
Read the full article here.