UPDATE 1:30 p.m. The resolution regarding the HUD loan for the LeMay Museum has been postponed until next week’s City Council meeting.
At today’s Tacoma City Council study session, Assistant City Manager Rey Arellano told council members that due to changes made to the HUD loan documents, “staff needs additional time to review” them.
The last we reported, in February, the city and LeMay officials had ironed out several wrinkles that delayed agreement on a proposed third-amended development contract to build the museum on land next to the Tacoma Dome.
After a series of negotiations with city staff, the council ultimately agreed that once the museum pays off the seven-year HUD loan to help build the project’s first phase, LeMay officials will be allowed to use city-donated land for the project as collateral to obtain future loans – so long as any loan goes toward improving or expanding the museum.
The agreement also meant the project could move forward, as we wrote below:
With the city’s approval, the new agreement will allow the museum to finalize details on a $20 million financing package, said David Madeira, the museum’s executive director. LeMay officials said that once the financing package is closed, they hope to break ground and begin construction sometime this spring, with the new car museum opening in 2011.
So, with the council’s approval of the loan tonight, does that mean financing has closed and we’ll start seeing construction on the project begin in the next few days?
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