HAMILTON — Hamilton City Council is being asked to approve amendments to existing loan agreements tied to the Spooky Nook Champion Mill development project. According to a caucus report prepared for City Council, the proposed amendments would restructure repayment terms and adjust interest rates on four loans involving Champion Mill Land LLC and Historic Mill Land 2 LLC. City officials say the changes are intended to support the continued success and growth of the Spooky Nook Champion Mill campus. The report states the city originally entered into a development agreement for the Champion Mill redevelopment project in 2018 and later finalized four loan agreements in March 2020. The outstanding balance on those city loans was listed at nearly $27.9 million as of Dec. 31, 2025. Officials say Spooky Nook is current on all payments through the end of 2025 and continues to maintain a $1.75 million irrevocable standby letter of credit required under the agreements. Under the proposed amendments, loan payments would be deferred through Jan. 2, 2029, while interest accruing between Jan. 1, 2026, and Dec. 31, 2028, would be added to the principal balance of the loans. The revised agreements would also change the interest rate structure to the city bond rate plus 2%. The proposal would allow the city manager, with approval from the finance director, to reduce or waive interest rates if determined to be in the city’s best interest, though the rate could not fall below the city bond rate. The proposal is expected to receive a first reading before council on May 27, with a second and final reading scheduled for June 10.