Daytona Delays Discussion On Beach St. Tattoo Shop; Approves BB&T Loans

By on December 20, 2017 in WNDB News

Daytona Beach, FL – Update: The Daytona Beach City Commission (DBCC) unanimously voted to approve several loans from BB&T and to push back discussions on the proposed Beach St. tattoo shop.

Commissioners voted to approve the switch from the Series 2009 BB&T bank loan to the Series 2017 bank loan. It is estimated that the City will save $1,266,633.75 since the interest rate is much lower for the new loan. The City also voted to purchase a new fire pumper using another BB&T loan. It was also decided that discussions on the Beach St. tattoo shop will be continued until the regular DBCC meeting on January 3.

City of Port Orange Council Member Chase Tramont was unanimously appointed to the First Step Shelter Board of Directors. Tramont will fill the 7th and final voting member seat on the Board. More non-voting members may be appointed to the Board but in order to appoint another voting member, the Board would have to arrange a special meeting.

Earlier Reporting:

During Wednesday night’s meeting, the Daytona Beach City Commission (DBCC) will vote on loan and capital financing agreements between the City and Branch Banking and Trust (BB&T) and an ordinance that would allow a tattoo shop on Beach St.

The City of Daytona Beach seeks to refund its Series 2009 BB&T bank loan in order to issue the Series 2017 bank loan. The switch will reduce the interest rate from the current 4.98% to 3.54% and save the City $1,266,633.75. The interest has been lowered by BB&T due to an agreed 0.5% prepayment fee paid by the City.

If approved, the loan would be non-callable until November 1, 2022. A 1% prepayment fee will be assessed if called before that date. The loan balance is currently $23,483,000 and upon approval, would total $23,655,000 to include a $172,000 closing cost.

If the switch is made, the City will be responsible for paying $54,585 in financial advisor, bond counsel, and bank attorney fees as well as a $117,415 prepayment fee. The City expects the final loan payment to be made in Fiscal Year 2029.

During the meeting, commissioners will also hold a public hearing on a proposed ordinance that would allow the City to partner with BB&T to purchase a new fire engine. The E-One Typhoon fire pumper would be purchased from Hall-Mark RTC for $450,000 using BB&T capital.

The interest on the loan would be 2.3% with a maximum of $51,138 due in annual payments over the span of no more than 10 years. The repayment will begin on December 1, 2018. If approved, financing will be able to be prepaid in whole at no additional cost starting 3 years after the agreement is made. The closing date would be December 21, 2017 with $5,000 in closing fees due during Fiscal Year 2018.

The Commission will also discuss a proposed ordinance on second reading for a tattoo shop on Beach St. The proposed ordinance would rezone .06 acres of land located at 246 S. Beach Street Downtown from Redevelopment – Beach Street Retail (RDD-1) to Planned Development-Redevelopment (PD-RD).

The proposed tattoo shop, Red Sparrow Studios, was recommended approval by the Historic Preservation Board and the Planning Board, but the Downtown Redevelopment Board failed to approve a recommendation for the shop. The potential for future code violations and the uncertainty that the shop would use the word “tattoo” in its sign were concerns for residents and board members.

If approved, the shop would be located on the second floor and would operate from 10 AM to 10 PM. The owner stated that most of his work will be through appointments rather than walk-ins. He assured that the business will be run alcohol and drug-free. During a neighborhood meeting, 2/3 to 3/4 of the attendees were recorded as being opposed to the tattoo shop. It was discussed that the neighborhood would rather the tattoo shop be opened further north on Beach St.

The DBCC will also vote on an appointment to the First Step Shelter Board of Directors. City of Port
Orange Council Member, Chase Tramont, has been nominated for the board position. The City of Port Orange provided funds for First Step Shelter, so it is believed that the City is eligible to be represented on the Board.

Copyright Southern Stone Communications 2017.



If you enjoyed this article, subscribe now to receive more just like it.

Comments are closed.