That’s not my description of the 40-year, no-interest loan the Greensboro City Council approved to help renovate the run-down Bessemer Shopping Center.
The N&R reports (unposted):
City staff members said the loan is risky.
The city would be the second lien holder, meaning the bank would get paid first if the project failed. And if the city already has more than $1 million invested in the property in redevelopment work done so far.
“It’s a hard-to-develop area,” City Manager Rashad Young said. “Council has to make a decision about what level of risk they are willing to accept to move forward.”
Council member Trudy Wade was the lone ‘no’ vote, which means Mayor Bill Knight voted for the loan, while council member Danny Thompson, who’s taking heat for his farmer’s market vote, recused himself to due to potential business conflicts.
I certainly hope East Greensboro redevelops, but it’s worth remembering that risky loans are what got us into the mess we’re in now.
