Wednesday, September 17, 2008

Loan forgiveness allows Big Dog to sell OTR properties

Cincinnati City Council has approved an ordinance modifying a loan agreement with Big Dog Properties for their 13-unit rental rehabilitation project at 1435, 1439, 1441 and 1443 Walnut Street in Over-the-Rhine.

The ordinance forgives a loan from a $388,000 second mortgage held by the City of Cincinnati since a 2002 development agreement, allowing Big Dog to sell the buildings, which they claim are only slightly above 50 percent occupancy and have been operating at a loss for several years.

Cincinnati Development Fund (CDF) holds the first mortgage, valued at $488,000.

CDF will arrange the sale, and the proceeds will pay off the remainder of the rehabilitation loan from the first mortgage, fees, and past due taxes.

If the property is not sold within two years, the City will not forgive the loan.

Any sale proceeds exceeding $450,000 will be applied to the City mortgage payment.

Previous reading on BC:
Developer wants out of City loan, sale of Walnut Street properties (9/9/08)