The project is expected to include two new restaurants on the street level spaces and 120 upper-floor condominiums. Pakonen won't have to repay the loan if he completes and sells the condos, which will be priced from $106,000 to $360,000.
The project's proposed budget includes a developer profit of nearly $1.4 million, according to the agreement. Pakonen and the city will split any profit that tops 12.5%.
Construction on the condos is expected to begin late this summer and sales efforts will likely start this fall. Restaurant construction would begin once he finds tenants, Pakonen adds. Existing restaurants in the building, including Pazzaluna and Sakura, will stay there. Sakura is currently undergoing an expansion.
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