Industrial project's developer gets loan agreement extension

May 25, 1993|By Mary Gail Hare | Mary Gail Hare,Staff Writer

The Sykesville Town Council last night granted the developer of Raincliffe Center, a 32-acre industrial parcel, an extension of a loan agreement negotiated in July.

Public financing arrangements for the project were completed nearly a year ago. The town planned to borrow $1.25 million from the state and $250,000 from the county to purchase the center's infrastructure and would repay the loan with taxes collected from businesses on the site.

"The state and county agreed to loan money to the town, while Sykesville fit the property into a position to collect taxes," said Mayor Kenneth W. Clark at last night's meeting. "We also are protected in case no tax is collected."

Once developed and fully leased, the industrial site at Raincliffe Road and Route 32 could generate 25 percent of the town's tax revenues, said the mayor.

The state guaranteed the availability of its portion of the loan only for one year. During that year, Mount Aetna Partnership, the developer, has not been able to obtain conventional financing.

"We are asking the council to assist us in our petition for an extension," said Dave Moxley, project manager and owner of the center.

The county has scheduled a hearing on the extension at the Office of Economic Development at 3:30 p.m. June 1. "We feel the county will support our request for an extension," Mr. Moxley said.

Councilman Jonathan Herman asked if the partnership is actively seeking tenants for the seven lots.

"We are priced competitively at $100,000 an acre for developed land," said Mr. Moxley. "Users so far are not interested when they can get existing buildings."

Mr. Moxley said two supermarkets, a bank and a fast-food restaurant have expressed interest in the site. He said he hopes to work out financing with the bank, which could occupy one of the anchor spots in the parcel. "The partnership is not sitting still," he said.

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