The Southgate City Council approved an order at their last meeting on Aug. 17 to issue an Industrial Revenue Bond, or IRB, for the proposed apartment community within the Memorial Pointe Project on the former Beverly Hills Supper Club property.
Southgate is issuing an IRB exclusively for the apartment portion of the project. Developer North American Properties will receive $34 million to finance the cost of acquisition, construction, equipping, and installation of the project, according to the order.
An IRB is a common financing mechanism for large development projects. They are attractive to developers because they offer a lower interest rate and a long-term, fixed-rate financing package. The bonds are not tax-exempt.
A public entity sponsors IRBs — in this case, the city of Southgate — but they are used by a private business — in this case, North American Properties. The developer is responsible for the repayment of the loan. The city has no financial obligations.
According to previous coverage on the project, the high-end luxury apartments will include a group of four- and six-unit apartment buildings, along with a swimming pool and clubhouse. Between 100 and 200 units are planned.
Other developments part of the Memorial Pointe Project are a 90-bed senior facility with 20 single-family homes attached as an HOA and approximately 60 single-family homes built by Fischer Homes.
Memorial Pointe covers 80 acres, and in addition to residential development, according to a news release from Fischer Homes in April, the community will maintain greenspace and include a park and connections to Highland Country Club across Blossom Lane from the site.
The general developer for the project is Ashley Builders Group; the total project cost will be approximately $65 million and is estimated to take five years.
Excavation has already begun for the project.
A memorial for the 165 victims of the Beverly Hills Supper Club fire in 1977 will be placed toward the bottom of Memorial Pointe Drive, which will be the front entrance to the development.
Access to Memorial Pointe will be from U.S. 27 and Blossom Lane.
The memorial will include:
- The names of the victims.
- A list of local first responder units that responded to the fire.
- A list of the federal and state fire safety regulations implemented because of the fire.
- Maps of the site in 1977.
According to Southgate Mayor Jim Hamberg, a marker will also be placed at the top of the hill marking the position of the original Cabaret Room.