City council OKs TIF loan terms for proposed restaurant
By Kayleigh Rahn & William Rahn
Tuscola may have a new restaurant to call its own within six months time, and the Tuscola City Council is giving its support to help make it a reality.
The Tuscola City Council during its meeting Monday, June 25 approved the assumption of the Tax Increment Financing Loan for Daylight Donuts, 901 E. Southline Road, by Austin Apgar, who has proposed a new restaurant. Richard and Donna Kidwell accepted the offer from Apgar for the former donut shop property.
The details of Apgar’s project have not yet been made public as the transaction has not been completed, though they expect to close within a couple weeks, says City Administrator Drew Hoel.
“He has a very exciting restaurant project that I’m not at liberty to discuss with you exactly what it is at this point, but I think excited is an understatement,” Hoel said.
In the meantime, city aldermen have given the green light for the terms of the agreement that will allow Apgar to assume the amount of the payoff, which would be about $50,125 with 0 percent interest upon purchase. Within the parameters of the agreement, the city will reduce the balance of the loan to $40,000, about a $10,000 reduction, if the restaurant is open within six months.
“As you all know we are nearing the end of TIF,” Hoel said. “There’s no new money out there to help new projects like this along.”
Apgar is also involved in Lambo’s where investors are considering a $1.5 million expansion of that facility, Hoel said.
“They are considering adding a diesel lane and paving the gravel lot where they are currently parking semis and maybe constructing a building there,” Hoel said.
If the Lambo’s expansion is accomplished within 18 months the remaining principal balance from the 901 E. Southline loan will be forgiven at that time.
“It’s exciting that apparently Lambo’s is going well enough that they are wanting to expand and inject more capital out there,” Mayor Dan Kleiss said. “That’s what is supposed to happen.”
“It’s a pretty good trade off,” added city councilwoman Phyllis Truitt.
The full story can be found in the Wednesday, June 27 edition of The Tuscola Journal.