Historic building in downtown Claremont sells at auction
"It's a complicated structure, but the bottom line is Monadnock Economic Development Corporation needed to be a member of the LLC to make it work," Dugan said.
The Claremont Development Authority stepped in with a $450,000 loan to complete the $2.5 million financing needed for the project when the project stalled. Claremont Development Authority had borrowed the money from the N.H. Business Finance Authority.
Unfortunately, once completed, cash flow became a problem, Dugan said. Brown Block Development LLC couldn't charge rents high enough to keep up its loan payments, Dugan said, and ended up defaulting on the loan to N.H. Business Finance Authority, which ended in foreclosure.
The building is assessed at $546,000, Dugan said.
"I don't think anybody thought that it would realize that kind of money," Dugan said.
"I think people forget now after seven years, it was basically an abandoned shell in downtown Claremont across the street from City Hall," Dugan said.
The project was good for downtown, it created jobs and brings in taxes to the city, Santagate said."Without government money in there to jump start it, it wouldn't have happened," Santagate said. "Eventually what will happen is the Business Finance Authority will sell it to a private owner who will not be saddled with the debt of rehabilitating it."
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