The city is willing to lend $2 million to convince a call-center company to locate an expansion here that would create at least 500 new jobs downtown.

City council approved the $2 million loan, with an interest rate of 0.25 of a percent for up to 12 months, today with VXI Global Solutions.

VXI already employs about 500 to 600 on the fourth floor of the city-owned 20 Federal Place building.
A $2.7 million expansion would be on the building’s fifth floor. A VXI official said the deal could be finalized in a few days.

Also today, council declined to purchase the long-closed Paramount Theatre on West Federal Street for $80,000.

The deal isn’t dead, but council members said they don’t see why the city should buy the building now and assume the liability of the dilapidated structure.