Gastonia considers deal for Webb
City Council may vote this week on lease-to-rent proposal for restaurant to acquire historic theater.
By Joe DePriest
Posted: Sunday, May. 16, 2010
The Gastonia City Council may vote this week on a proposal that would turn the historic Webb Theater on South Street into a restaurant.
City Manager Jim Palenick said the lease-to-own agreement will be reviewed by the council on Tuesday.
At an earlier meeting, Palenick outlined the proposed agreement, though he would not name the developer. The city would put up $700,000 as an allowance the developer would use to convert the building.
The money would come from three sources: a $492,800 U.S. Housing and Urban Development loan; a $99,200 federal grant; and $108,000 in federal stimulus money.
He said a “high-quality” restaurant headquartered in the region would go into the space, which was formerly occupied by city offices. The lease payments to the city would be $6,875 per month. After 10 years, the building would be transferred to the new owner after an additional balloon, or final payment, of between $51,000 to $62,000 is paid to the city.