Approves a ten-year loan agreement in the amount of $750,000 to Menalto LLC to facilitate the acquisition of the property at 3727 Delgany to accommodate business relocation within the Brighton corridor in Council District 9.  (BUSINESS DEVELOPMENT COMMITTEE) Approves a ten-year loan agreement in the amount of $750,000 to Menalto LLC to facilitate the acquisition of the property at 3727 Delgany to accommodate business relocation within the Brighton corridor in Council District 9. The last regularly scheduled Council meeting within the 30-day review period is on    .  The Committee approved filing this at its meeting on 8-5-14.
Day. Well, one day. 620 has been ordered, published. And, Madam Secretary, can you tee up the last one, which was on final consideration 598 called out by Councilwoman Fox. Councilwoman Fox, what would you like for us to do with this? Please put it on the floor for the expected vote. Thank you, Councilwoman Fox. Councilwoman Layman, can you please please 598 on the floor for final consideration and do pass? Yes, Mr. President, I move the Council Bill 598 series of 2014 be placed on final consideration and do pass. Is then moved in segment comments. Councilman Foxx. Thank you, Mr. President. I am seeing one gigantic grab bag that says, surprise, this is this is a loan that we are making $750,000 and we don't have a clue what it's for other than lifestyle, entertainment, $750,000 for a lifestyle entertainment loan, and they will not tell us what it is. So I'm going to vote no. Thank you. Councilwoman Fox, any other comments from members of the council? Councilwoman Ortega. I just want to ask someone from OED if they can come up. John, maybe. Good evening, John Lucio, the deputy director of the OED. So, John, is there any more you can tell us about this project at this point in time? At this time, we cannot it hasn't been finalized yet. The negotiations are still going on. So why why are we bringing this forward at this time? So it's not clear what those. Negotiations are going to be. So the borrower is using a he's banking on a tenant to support the cash flow for the loans, the loans actually to the property owner for the acquisition. But we can't disclose who. And that's very common in economic development. We can't disclose who this is at this time. I know this came to committee. We had lengthy discussions with the the property owner who is working on the project. And it sounds like a very interesting and exciting concept. But I just wanted to know if there was any more that you all have seen move forward that would allow you to share with us. So at this point, you're saying. At this point I haven't done it is. And at what point will you be able to disclose that with us. As soon as the tenants and their landlord reach an agreement? If we if we disclose who this business is coming from out of town, we could jeopardize the entire deal. So at this point, we don't want to we cannot do that. How typical is it that you do this type of a deal here? Several times we negotiate with companies from out of state or corporations and quite a few businesses over. You cannot disclose who they are until the very last second. So that's an important. But that's what it is. Okay. Thank you. Thank you. Councilwoman Ortega. Councilman Neville. Thank you, Mr. President. This was the expected vote from Councilwoman Fox and the expected response from me saying things the same way, but coming to a different conclusion. I too, would have a lot of skepticism over a deal for a mystery tenant. I'm not in the habit of buying a pig in a poke, but the the the the developers in this case have an amazing track record. These are the geniuses behind Battery 621 and industry. And that's that's a group I'm willing to gamble on, as well as the excellent work that's been done by the Office of Economic Development . Vetting this deal. So while it is unusual, while it is something that, you know, I wouldn't ordinarily eagerly embrace, this seems like a worthy bet. Thank you. Councilman Nevett. Councilwoman Robb. Thank you, Mr. President. John Lucero Since I was not in committee, I want to ask you a question that I hope you can address, though I may not like the answer since you can't tell us the tenant and I understand that that could jeopardize closing the deal. Correct? I want to know if the tenant doesn't come, what issuances OPD has that this is still a solid loan. Is it just that the group has a good reputation? What sort of backing did they give you? How do we know that this is going to be a strong place for us to be and not something that you come back to in two years or four years and renegotiate? Councilwoman fights won't be here then, but her echo will be, I'm sure, and she'll be saying, I'm not loaning to this group again. Right. So the again, the loan is based is to the borrower and we're very confident to our underwriting that we well leveraged with the assets of the transaction and the guarantees. So and we were hoping to be able to tell you who the tenant would be. It would be exciting when we can do that. And then if that tenant has not come through, the borrower does have the ability to pay the loan and seek another tenant. Payday loan right at the time. Where you can. Yes, exactly. So it's been it's been underwritten as a loan. Okay. Thank you. Okay. Thank you. Councilwoman Robb, any other comments from members of council scene? None, Madam Secretary. Councilman Brown. Thank you, Mr. President. One might concur that the last two Monday nights in this chamber represent lifestyle entertainment. Perhaps we should charge an entertainment tax. But any event, the the BET analogy got me because when I bet, I bet with my own money, not the city's money. So I'm going to be voting no on this. Thank you, Mr. President. Thank you, Councilman Brown. Councilman Brooks? Yes. I'd just like to make a little correction. This is not an industry development. This is a development by Bernard and Camille Hurley and their property owners on on Brighton. And. But I still would like to echo Councilman Neville's sentiments. This is these are owners that are ferociously working to redevelop Brighton. And they're working with other property owners. They do have a track record. Unfortunately, you know, as John stated in economic development deals, this happens all the time when you have to sign a non-disclosure agreement on who the business might be until all the finances have been worked out. So I definitely respect my council colleagues, but the Office of Economic Development is doing what they have been tasked to do. Make investments in parts of the city where the market is not. And so they are tasked to take some risks. And so they're doing that. But this is a this is definitely a sure bet. Thank you. Thank you. Councilman Brooks, Councilwoman Monteiro. Thank you, Mr. President. Last week I voted for this, and it really bothered me that I did it because I, as a council representative for this district, had not been briefed that this was coming forward. And they waited all week and still no phone call. I don't even have the level of which some would say it's your fault duty. But, you know, so to the level that some of my other colleagues have and so I'm going to be abstaining. I'm not comfortable with this at all. And if somebody wants to take the time and call me, that's great. But no one took the time at all to call. And I represent this council district and would have would have more of an expectation that I should have been contacted. So I just got to encourage my colleagues to vote the way that they feel is the most appropriate for me. I'm just going to abstain. Thank you, Mr. Chair. Mr. President. Thank you, Councilwoman Monteiro. Any other comments from members of council seeing none. Madam Secretary Rocha. Thoughts? No. Can each. After that? Lehman Yes. Lopez I. Monteiro Thing. Nevitt, I. Ortega, I. Rob. Shepherd. Pass. Susman. Right. Brooks. Brown. No. Shepard. Hi, Mr. President. I. Councilwoman Ortega, are you called? I'm sorry. Okay. And then Councilwoman Shepard goes hanging. Fire. Oh, I'm sorry. After Arthur died. All right. There. We got it. Madam Secretary, please close the very announced results. Minus two names. One abstention. 92 nays, one abstention. 598 does pass on final consideration. All right. I believe that all the bills that were called out so we are ready for the block votes, all of the bills for introduction are ordered published. Councilwoman Lyman, will you please put the resolutions on the floor for adoption?