The Jacksonville City Council approved a major loan from its revolving loan fund Monday night to see a once-vacant storefront reopen.
The council unanimously approved a $1 million low interest loan to Marx Commercial Properties and Development Company for the continued work at the former Shopko.
Currently, the building has two businesses scheduled to open there – Marshalls and Hobby Lobby.
Tory Kaufmann, now the spokesperson for the development company since the passing of owner Tom Marx, says that the Marx Commercial Properties and the extended Marx family is very appreciative of the city’s help with the large investment on the project: “It’s probably about a $6.3 million investment, and being able to loan a million dollars at a low interest rate is very helpful. We greatly appreciate it. Tom appreciated it. I’m in his role now. I do, my aunt – we all do. We appreciate everything the city has done. It’s going to be huge to get Hobby Lobby and Marshalls in the market here. That loan helps out a lot. So, thank you all for everything you’ve done for us. And, we are on track for a June 1st turnover date for both tenants.”
Kaufmann had previously told the council the low-interest loan was necessary because the Shopko building had some unexpected plumbing issues and some other incidental problems that needed addressed before the tenants could take over.
The loan schedule that Marx originally proposed was a 20-year annuitization, but it would be ballooned off in a decade. Marx had also sought a sale tax revenue share with the city from the business in the development to help pay off the investment. The city has previously provided a similar sizable loan to CCK Automation when the manufacturer expanded in 2009.
City Treasurer Beth Hopkins has previously said that payment on the Marx loan would start back to the city one month after the city makes its first payout of the loan.