TITLE: Title
Consider a loan request from Eden Food Group for Tandem
PURPOSE: The purpose is to consider a business loan fund request from Eden Food for $100,000 to help capitalize a new restaurant concept named Tandem.
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DEPARTMENT: Economic and Community Development
CONTACT INFORMATION: Annette D. Stone, AICP Economic and Community Development Director
INFORMATION: The town has received a business loan application request from Eden Food Group which is owned by Emma Dunbar and Younes Sabouh. The request is for $100,000 to capitalize a new restaurant concept named Tandem which is located in Carr Mill Mall in the space previously occupied by Caf? Symmetry, see Attachment 1 Loan Application. A summary sheet of the details are in Attachement 2. The ESC has met with the applicant and is recommending a loan amount of atleast $56,239.00. This recommended amount is based on the amount of equity in Ms. Dunbar's home and a $20,000.00 unsecured loan allowed under the business loan criteria. The recommendation is to amortize the loan over a 10 year period at 3% interest with the 1 year payments deferred.
The ESC also recommended that if the applicant could demonstrate a higher equity in the property through a professional appraisal that the loan amount be increased consistent with the available equity in the property. It should be noted that although the ESC was unanimous in its recommendation to fund the project, they were split 6 to 3 on the decision to defer payments for the first year or interest only payments for the first.
FISCAL & STAFF IMPACT: Funds are available to make this loan.
RECOMMENDATION:r The ESC recommends the Board of Aldermen approve the loan based on the demonstrated equity in the property located at 104 Gracewood Place, Chapel Hill NC located in the Town of Carrboro, plus $20,000 in unsecured funds for a term of 10 years at 3% interest with the first year payments ...
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