A city loan from the Port Authority will allow financing the construction of new real estate

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GALION – The City of Galion provides financing for new real estate development projects.

On Tuesday, July 27, Galion City Council voted unanimously to pass Ordinance 2021-65, which authorizes a USD 300,000 loan to the Port of Galion Authority, which the Port Authority will in turn provide a loan to Five Galion Company LLC to finance the construction two new 18-unit apartment buildings in the current Carter Crossings housing estate on Carter Drive, adjacent to the Galion City schools campus. Eleven indoor parking spaces will be included with each new facility. The interest rate on the loan is 1%, according to the terms of the agreement.

Harry Giltz, a spokesman for Five Galion Company LLC, said all of the apartments in the first two apartment buildings on Carter Crossings are currently occupied. The complex features one and two bedroom apartments with monthly rent from $ 825 to $ 1125.

“Quite simply, the proposal is to provide a municipal loan to the Port Authority of $ 300,000 in interest rate with a five-year balloon payment,” Mayor Tom O’Leary explained. “This investment or this commitment will entail the construction of the third and fourth buildings due to the lack of a better range. We hope that (the loan) will allow them to buy materials for the apartments, as well as materials for the construction of two buildings (in the Renschville Development area) on (Winchester Road). “

Giltz noted that the loan will allow Five Galion to buy building materials in bulk, which will reduce the total cost of materials.

Chad Miller of the Galion Port Authority said the loan will also help build homes at Renschville Development, an 11-acre site on Winchester Road that the Port of Galion Authority acquired from Five Galion Company LLC.

“Our biggest win here, besides helping (the Five Galion Company) with the Carter Crossings project, is to begin construction on the old Renschville single-family area,” said Chad Miller of the Port of Galion Authority. “This was, I believe, another gift from the board of the port administration, on which we spent some of this money to actually buy this property. I am very optimistic that new housing in the area will sell very quickly. I think that it will be interesting not only for the current developer, but also for the future developers to develop the rest of the plots. “

Five Galion Company LLC has an option to purchase five plots located in Renschville Development. The company was granted access to the property as part of the agreement when the port authority acquired the property. Five Galion had a sale and purchase agreement to acquire property in Renschville and they transferred it to Porto when he sold the property to an agency.

Miller said Renschville Development has enough room to build 20 single-family homes.

Construction of new apartment buildings is expected to begin this fall at Carter Crossings.

The Galion City Council has approved a US $ 300,000 loan to the Port of Galion Authority, which will be used to develop real estate in the city. In turn, the Port Authority will provide a loan to Five Galion Company LLC, which plans to add two new buildings to its Carter Crossings housing estate on Carter Drive (pictured) and to build single-family homes on the Renshville development site on Winchester Road.

Council approved a loan of $ 300 thousand

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