Big things will be happening soon at Viking Plaza – to the tune of $2.6 million.
At its meeting Monday night, the Alexandria City Council agreed to Viking Plaza Realty Group’s request to tap into the city’s Revolving Loan Fund for $200,000, the maximum amount allowed for commercial projects under the fund’s guidelines.
This will help pay for a $2.6 million remodeling project for new tenant space in the old Herberger’s area of the mall, as well as parking lot improvements and other site work.
The names of the new mall tenants were not disclosed at Monday’s meeting.
In its loan application, Viking Plaza Realty Group said the project will create between 55 and 125 jobs by 2021.
The Viking Plaza Realty Group agreed to pay back the loan over 15 years at an interest rate of 5.25 percent, which is the current Wall Street interest rate, noted City Planner Mike Weber. The group also agreed to cover all closing costs, including legal, title, recording, registration tax and other expenses.
Private funds and investors will pay for the bulk of the project, along with $200,000 from the Greater Alexandria Industrial Network, according to the loan application.
The city’s Revolving Loan Fund is projected to have a balance of about $588,040 on Sept. 30, which will easily cover the loan amount.
After Weber told the council that the project met the Revolving Loan Fund guidelines and there was sufficient money in the fund, the council voted 5-0 to approve the loan.