Job Talamantes will get the $10,000 business loan he requested from the Austin Port Authority for capital improvements to his grocery store, Tienda Mexico.

Thursday, June 28, 2001

Job Talamantes will get the $10,000 business loan he requested from the Austin Port Authority for capital improvements to his grocery store, Tienda Mexico.

In a request to the Port Authority in January, he pledged to return half of any savings on the estimated cost of the improvements and to use the remainder to reduce the bank debt. The loan will be matched one-to-one by Wells Fargo Bank. Talamantes asked that the interest rate be less than 5 percent.

The commissioners voted to approve the loan with no interest for 10 years with these conditions: that Talamantes ensure that the contract for deed on his business at 1000 Fourth Ave. NE is recorded, that the mortgage have the Port Authority assignment on the contract and that a credit report be completed. Commissioner Dick Lang noted the improvements already in progress and completed by Talamantes.

He said, "You’ve added a lot to our business district. I’m always glad to see the hustling and bustling down there."

Port Authority President Dick Chaffee wondered: "If we’re working in a retail base like this, we are looking at other areas that are in the grocery business. Are we setting any kind of a precedent here … where we’re going to, perhaps, get some flak from some other areas maybe we haven’t heard from yet?"

George Brophy, executive director of the Development Corp. of Austin, was present at the meeting and said that Talamantes’ request touched on what the urban renewal concept of the 1970s was about.

"I think you’re (the Port Authority) about improving an older part of the community by making investments whether in infrastructure or individual businesses … or, the betterment of that portion of the community as opposed to the betterment of a particular business or business owner at the expense of others," he observed.

Also, on the agenda was the unaudited financial statement, which city Financial Director Tom Dankert explained to the commissioners. The statement is a report on the financial status of the Port Authority at the five-month mark.

He said, that for the five months ending May 31, there was a loss of about $12,000.

"You have to remember though, the Austin Packaging Co. structure of the repayment schedule, you’re automatically going to lose almost $7,500 right there alone. We knew it when we signed the deal several years ago," Dankert said.

Town Center rents haven’t increased enough to recover the Port Authority’s costs, which accounts for the remainder of the negative balance, he said. Actually, we’ve had a pretty good five months."

Dankert said the 20-year repayment of Austin Packaging Co.’s bond allows for the Port Authority to recoup its money from 2012 to 2018.

Commissioner Lynn Koch asked whether cash flow would be a problem with the negative balance. Dankert assured him it wouldn’t.

At the end of the meeting, Brophy addressed the commission and said that the city "needs to use its resources in a collective way" and exam what needs to be done to make Austin attractive for industrial expansion.

He feels that the DCA, the Port Authority and Austin Utilities should pool their efforts to bring businesses to Austin, and mentioned other cities such as Mankato and Owatonna that have received money from the state to develop technology centers.

In other business, the commission:

n Unanimously approved the proposed 2002 budget.

n Approved a three-year lease agreement at Town Center with US Bancorp Piper Jaffray, 5-1. Commissioner Michaell Bednar voted no, stating that it wouldn’t be fair to businesses in the building that signed five-year contracts.

Call Ailene Dawson at 434-2235 or e-mail her at ailene.dawson@austindailyherald.com.