FORT WAYNE, Ind. (WFFT) - RTM Ventures, the developers behind Electric Works is asking the Capital Improvement Board to cosign a loan to move the project forward.
In a letter to Jim Cook, the chairman of the CIB, RTM Venture partner Josh Parker says after meeting with 40 institutions, they secured an investment proposal from Rubenstein Partners out of Philadelphia.
The letter states Rubenstein will lend developers $23 million to move Electric Works to closing, but the CIB will need to be the guarantor of the loan.
Parker states the they've faced "unexpected yet enormous challenge ... getting financial investors."
Parker's letter said this is last piece to make the project happen.
If the CIB cosigns the loan, it would only be responsible for the loan or its portion of the $65 million commitment toward the project, not both.
The money from this loan will be used to pay bills that are due now, including local architects, engineers, lawyers, refinance the mortgage and fund the work needed to get to closing.
Parker asked the CIB to consider this proposal during its next meeting, November 21.
If the project doesn't happen, the CIB will become owners of the former General Electric campus.
"The City of Fort Wayne as one of the local public funding partners is committed to the terms of the economic development agreement as amended that's currently in place. It's not clear at this time what will happen next regarding the most recent request from the development team," said city of Fort Wayne spokesman John Perlich.
The closing deadline was recently pushed back to April by the CIB, Fort Wayne city council and Allen County commissioners.