Sumter City Council: Hampton's to save $45K a year with refinancing, annexed land could help expansion in T.J. Maxx shopping center

BY ADRIENNE SARVIS
adrienne@theitem.com
Posted 1/17/19

Sumter City Council approved two agenda items in favor of local businesses during its first meeting of 2019 on Tuesday.

Refinanced loan to save restaurant money

Reading: Resolution, only one vote is required

Agenda item: A resolution to …

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Sumter City Council: Hampton's to save $45K a year with refinancing, annexed land could help expansion in T.J. Maxx shopping center

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Sumter City Council approved two agenda items in favor of local businesses during its first meeting of 2019 on Tuesday.

Refinanced loan to save restaurant money

Reading: Resolution, only one vote is required

Agenda item: A resolution to authorize the city to participate in a refinancing of a Section 108 loan from the U.S. Department of Housing and Urban Development.

Background: The city accepted HUD's guarantee note, in the original principal amount of $843,000, for the Downtown Development Project - Hamptons Restaurant under a contract dated Sept. 14, 2006.

City attorney Eric Shytle said the original commitment was for a restaurant called Joey's Seafood which never came to fruition.

The loan was repurposed for Hamptons Restaurant, he said, since the city already had the commitment.

Shytle said the restaurant is responsible for paying off the loan, and the city only serves as the conduit, or a channel, between the federal government and restaurant.

The remaining balance is about $467,000 - which is scheduled to be paid off in seven years - and about $45,000 can be saved by accepting HUD's offer to refinance the loan at a lower interest rate, he said.

Loan payments started in 2009, Shytle said, and the final loan payment is scheduled for Aug. 1, 2026.

HUD's Section 108 Loan Guarantee Program offers state and local governments the ability to transform a small portion of CDBG funds into federally guaranteed loans to pursue physical development projects such as housing rehabilitation and economic development in those communities.

Discussion: Councilwoman Ione Dwyer made a motion for approval, and Councilman Thomas Lowery seconded.

Vote: Unanimous approval.

Annexed land could add to shopping center

Reading: First of two

Agenda item: An ordinance to annex .8 acres at 1260 Alice Drive into the city.

Background: The annexation would include the subject property - an empty lot next to the Gateway Plaza where T.J. Maxx and Young's Beauty are located - and associated South Carolina Department of Transportation right-of-way on Alice Drive, according to a staff report from Sumter Planning Department.

Discussion: "This particular piece of ground that I understand will be helpful in the potential expansion of that center that's there," Sumter Planning Department Director George McGregor said.

Councilman David Merchant made a motion for approval, and Councilman Calvin Hastie seconded.

Vote: Unanimous approval.