Hospital Authority grants $5.8 million loan for Dick’s building renovation
The former Dick’s Sporting Goods store in Midwest City will be renovated to make way for two new tenants. Photo by Jeff Harrison
By Jeff Harrison
Midwest City Beacon
Owners of the former Dick’s Sporting Goods are getting more help from city leaders.
Sooner Town Center II LLC will receive a $5.8 million loan from the Midwest City Memorial Hospital Authority to renovate and divide their vacant 50,000-square-foot building for future tenants.
The Hospital Authority trustees, which include the Midwest City Council, agreed to provide Sooner Town Center II with a $5,800,000 construction loan during a Jan. 28 meeting.
An unnamed national retailer has committed to lease 24,000-square-feet of vacant space in the former Dick’s building, according to city officials. STC II plans to redevelop the building for the future tenant, which includes splitting the space and repairing the roof. The space would be leased in the future.
The loan term will be three years with an interest rate of 4.5%. The Hospital Authority will make about $500,000 – $750,000 over the lifetime of the loan, according to city attorney Don Maisch. He said the loan funds will be dispersed through a draw down. STC II will submit requests as work is completed.
According to the agreement, STC II will make interest payments for the three-year term and then find long-term financing from an independent third-party lending institution, paying off the construction loan in full. If STC II cannot find long-term financing, the Hospital Authority will consider undertaking the long-term loan.
STC II is putting the building up as collateral. The Hospital Authority would still be junior to the collateral held by FNB Community Bank, the lender.
Maisch said the agreement will save money and expedite construction. He said a loan from a private institution would come with an interest rate of about 7.5% – 8%.
Ward 1 Councilmember Susan Eads questioned if any potential slowdowns in construction could cause the tenant to leave. Maisch said he believed the agreement is sound.
“I can assure you that construction is going to be done very rapidly,” he said.
Ward 6 Councilmember Rick Favors, who recommended the idea, made the motion to approve. The council unanimously approved it by a 6-0 vote. Sara Bana was absent.
This is the second time in the past year that Midwest City has agreed to provide financial assistance for STC II.
In July, the city council agreed to provide up to $770,000 over two years to help STC II make loan payments for the building. The company said they had been having difficulty making loan payment to the loss of rent from the store which closed in January 2023.
The ancillary agreement included $380,000 for 2024 and $390,000 in 2025.
The city’s portion is being paid for by a reduction in rent it receives for the commercial development.
Midwest City partnered with Sooner Investment to develop Town Center Plaza nearly 20 years ago. The city owns land where the shopping center is located and receives a portion of the rental income. Sooner Investment leases the buildings and Collette & Associates, located in North Carolina, manages the space.
The buildings in Town Center are owned by separate LLCs. They include Sooner Town Center LLC, Sooner Town Center II LLC, Sooner Town Center III LLC. Sooner Town Center II and III were combined into one.
Sooner Investment and Collette both have interest in the LLCs.
Sooner Town Center II LLC received a $9.13 million loan from FNB Community Bank in 2012 that was used to build Dick’s and other businesses. The Midwest City Memorial Hospital Authority, a public trust, was a signatory for the loan.
