File #: 24-1833    Name:
Type: Resolution Status: Agenda Ready
File created: 2/1/2024 In control: City Council Legislative Meeting
On agenda: 2/27/2024 Final action:
Title: Consideration of Authorization to the City Manager to Enter into a Support Agreement in Connection with a Loan to be Obtained by the Industrial Development Authority for Certain Economic Development Activities.
Attachments: 1. 24-1833_Attachment 1. Support Agreement, 2. 24-1833_Attachment 2. Term Sheet from Virginia Small Business Financing Authority, 3. 24-1833_Presentation, 4. 24-1833_Presentation with Image
City of Alexandria, Virginia
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MEMORANDUM



DATE: FEBRUARY 20, 2024

TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: JAMES F. PARAJON, CITY MANAGER /s/

DOCKET TITLE:
TITLE
Consideration of Authorization to the City Manager to Enter into a Support Agreement in Connection with a Loan to be Obtained by the Industrial Development Authority for Certain Economic Development Activities.
BODY
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ISSUE: Approval of a Support Agreement from the City in connection with a loan to be obtained by the Industrial Development Authority of the City of Alexandria (the "IDA") for the purpose of financing the acquisition and build out of three commercial condominium units located at the Muse in Old Town North. The support of this loan delivers and activates the first designated arts space within the Old Town North Arts District.

RECOMMENDATION: That City Council:

1. Authorize the City Manager to execute a Support Agreement, in substantial conformance with the attachment to this memorandum (Attachment 1), in connection with a loan to be obtained by the IDA for the purpose of financing the acquisition and build out of three commercial condominiums units and activates the first designated arts space within the Old Town North Arts District; and

2. Direct the City Manager to include for City Council consideration an appropriation equal to the amortization schedule as a part of annual budget and appropriation authorization process during the loan repayment period.

BACKGROUND: During the Old Town North planning process, the City and Community prioritized the "arts" in the 2017 Small Area Plan which allowed developers to receive a density bonus to their projects in exchange for creating "arts catalyst spaces."

Over the course of the COVID-19 pandemic, businesses were disproportionately and negatively impacted throughout the City. This had the effect of creating a gap in available fina...

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