CLEVELAND, OH (WOIO) -Legislation has been introduced by Mayor Frank Jackson and Cleveland City Council members that would give the developer of the NuCLEus project in downtown a $12 million forgivable loan.
According to a spokesman for Jackson the loan would not have to be repaid as long certain conditions are met.
First, the developer Stark Enterprises, must complete the project.
If they don’t, Stark would be on the hook to repay all $12 million.
Secondly, they have to make sure the city gets the money back, plus 10% through new taxes generated because of the finished project.
“The developer has guaranteed that the City will generate income and parking tax revenues sufficient to cover 110% of the City’s outlay,” Dan Williams said in an email, who is Director of Media Relations for Mayor Jackson. “If the tax revenues do not meet the requirements, then the developer will make up the difference.”
The legislation does not set a time limit for those new taxes to cover the loan, but based on project plans, one of the 24 story towers will house 400,000 square feet of office space.
READ MORE: Cleveland19.com
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