The plan to transform the former BB&T Bank building in Fort Thomas into a new family-style restaurant took a major step forward Monday night.
City council voted five to one to authorize Mayor Eric Haas to sign an agreement with the developer, Quarter Group, that would provide financial support through a no-interest loan.
Council discussed the matter in a closed executive session as part of their April meeting and returned to public session to vote.
The deal
The developer raised $1.2 million for the project, expected to cost just over $2 million. Through the agreement, the city would lend $850,000 interest-free. The restaurant would have 10 years to repay the city. The business would make an annual payment of $10,000 plus 2.75% of any sales over $1.3 million. The developer would also receive 2.75% of those sales.
Even if the loan is not repaid within the 10-year period, it would dissolve at the end of the period.
According to Assistant City Director Joe Ewald, the arrangement is fairly typical for this type of project, and all such loan agreements have an end point.
Council member Adam Blau voted against the authorization. “This has been the hardest decision I’ve made since I’ve been on council,” he said. He praised the developers for the project itself but said he had concerns about parking and overall city spending.
“Just a continuation of city dollars that seem to be mounting for the business grant programs, the money we’ve already given the project, $1.6 million for the parking lot, and now a potential of losing more city dollars.”
He said he felt the developers’ projections were sound, but he said he was just not comfortable with the amount of spending. “I believe your numbers are attainable…but I have trouble with the money involved and the risks we are continuing to take.”
Haas said he is pleased with the agreement. “This has been in the community plan for years,” he said.
He praised the Quarter Group who he said came together to make this happen. “They’ve come to the city to ask for some financial help. We were not interested in giving them a grant, but they were interested in a no-interest loan to try to help them through this process.”
He said he felt the terms were favorable to both the development group and the city.
Next steps
The developer has been working on design plans for a sit-down restaurant. Jeff Hudepohl, a member of the Quarter Group, said they have a restaurateur in mind as well as a builder, but declined to name them until agreements are in place.
If all goes well, he said, the community could see a restaurant in the space at 25 North Fort Thomas Avenue by about this time next year.