By RORYE O’CONNOR
MT. VERNON — —
The City of Mt. Vernon Revolving Loan Committee on Monday voted to recommend to the City Council to approve a $30,000 loan application from Beit Mashach Properties, LLC, a corporation co-owned by Katrina and Kip Bauer.
The Bauers plan to renovate the property at 223 S. Ninth St. and turn it into an art gallery, Gallery 223, with an apartment upstairs and the possibility of a gift shop as well. The TIF Advisory Board in October approved $108,020 in Downtown TIF funding to the Bauers’ project, paid out over four years.
The couple plan to purchase the property in the former Wizard Shop for $45,000, and in the process will borrow $108,000 from Community First Bank of the Heartland, Kip Bauer said. He said the investment will include $52,000 in sweat equity for a total of $160,000 in improvements. The $30,000 loan requested from the Revolving Loan Committee will be put toward the purchase of the land, he said.
City Finance Manager Merle Hollmann said the committee’s recommendation would be to make a $30,000 loan with a loan period and amortization period of 20 years.
The loan agreement approved by the committee also stipulates that at the point the gallery project is completed and a TIF certificate of compliance is signed by City Manager Ron Neibert, the city will enter into a shared first lien position with Community First Bank. In addition, City Attorney David Leggans said the city should have the ability to approve the bank’s mortgage language.
The Bauers also must take out a 10-year term life insurance policy in the value of $30,000 under the terms of the recommendation to the City Council.
The motion was made by Eric Puntney and seconded by Pete Bradham; it passed unanimously.
The art gallery is planned to feature the paintings of Katrina Bauer and other artists; other artists’ paintings will be sold on consignment, she said. In addition, the business will provide canvas stretching services, painting lessons and commissioned art, Kip Bauer said.