Council approves loan increase for Pyramid Atlantic
BY REBECCA BENNETT — Pyramid Atlantic, a well-known arts organization that will move into the long-vacant Arcade Building at 4318 Gallatin Street, requested the city increase the loan it recieved as a part of its lease agreement.
The original lease included a $200,000 loan to be paid back over a 25 year period at four percent interest with a 10 percent discount for Hyattsville residents. On Feb. 16, the council voted to adopt the new terms of the lease, which now includes a loan of up to $440,000 for 25 years at 5.5 percent interest and a 15 percent discount for Hyattsville residents.
“The organization’s bridge construction loan is in place, however the projected total budget for the build-out and relocation of the organization is approximately $237,312 over budget,” a city memo said.
Hyattsville City Administrator Tracey Nicholson said on top of increased construction costs, the funding gap was mostly due to relocation fees that include program revenue losses and loss in rental income from artist spaces as they move from Silver Spring to Hyattsville.
“At this point, we have every confidence that they will be able to repay. … The building belongs to us,” Nicholson said. “If there were any reason that they could not pay, we get a fully built-out building that has had $2 million in investment in it.”
Pyramid Atlantic Executive Director Jose Dominguez said construction will begin the week of Feb. 22 and the target complete date is June 15.