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File #: 1567-2023    Version: 1
Type: Ordinance Status: Passed
File created: 5/18/2023 In control: Economic Development Committee
On agenda: 6/5/2023 Final action: 6/9/2023
Title: To authorize the Director of the Department of Development to modify the loan documents for Harry L. Macklin, Jr., dba Accurate Auto Center, for the purpose of forgiving the interest on the Building Development Loan and the Working Capital Loan, and to execute any and all documents necessary for the loan modifications; and to declare an emergency. ($0.00)
Explanation

BACKGROUND
This legislation authorizes the Director of the Department of Development to modify loan documents for Harry L. Macklin, Jr. (dba Accurate Auto Center) that were used for the purpose of purchasing the real property located at 1710, 1714, 1726, and 1728 East Main Street, Columbus, Ohio 43205 which is located in the Main Street Neighborhood Commercial Revitalization corridor.

The owner, Harry L. Macklin, is in the process of selling the aforementioned properties on Main Street. The City’s Business Development Loan, in the amount of $100,000 was awarded in 1998 to Accurate Auto Center. The current principal balance and interest is a total of $199,492.75 as of April 24, 2023. A modification is requested to forgive the interest totaling $105,881.91 as of April 24, 2023. The current principal balance of $93,610.84 will be paid by Accurate Auto Center upon the sale of the stated properties.

Accurate Auto Center was also awarded a Working Capital Loan used to meet short term payroll needs in the amount of $30,000.00 in April, 1999. The current principal and interest is $27,062.71 as of April 24, 2023. A modification is requested to forgive the interest amount of $14,183.26 as of April 24, 2023. The current principal balance of $12,879.45 will be paid upon sale of the stated property.

The Business Development Loan and Working Capital Loan were secured by mortgages recorded as Instrument Numbers 199804030079885 and 199804030079887, Recorder’s Office, Franklin County, Ohio.

Due to ongoing losses, Accurate Auto Center filed a chapter 7 bankruptcy on July 30, 2012 and the bankruptcy was terminated on August 15, 2013. The chapter 7 bankruptcy, however, did not include the above referenced properties on Main Street.

The above referenced properties were used as security for the Business Development Loan and Working Capital Loan.

Emergency action is requested to allow Harry Macklin to proceed with the real estate closing of the s...

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