“So the owner will have no equity when that occurs?” SLDC board member Wendy Timm said.

Timm said the “lack of permanence” of developer equity gave her pause. She also wanted more details on over $1 million in management fees as well as provisions making the fees “more contingent on delivering.”

Chris Goodson, another board member, said he wanted to support the project because it would provide “food service in a food desert,” but that he had questions about the total cost.

“I’m just having a hard time with that north-of-$500-per-square-foot project cost,” he said.

Asked whether the project could accommodate the board’s requests, Caplin said: “We’ll need to have further discussions, but we look forward to working with the board on a solution.”

NorthSide fees

SLDC chief Otis Williams emphasized that the agreement bars proceeds from the additional New Markets credits from being distributed as fees to NorthSide Regeneration LLC, the main entity McKee has used to acquire hundreds of acres north of downtown.