Councilor McDonald asked the Malden City Council to refer a mayoral request to seek a Section 108 loan of $1,500,000 from the U.S. Department of Housing and Urban Development to support phase two of the Malden River Works project.

A city memo read into the record said phase two would include construction of a boathouse in Malden River Works Park and a salt shed at the Department of Public Works yard. The memo estimated the phase will cost about $4,100,000 and said roughly $1,100,000 in existing grant funding is expected to be applied to the work; additional grants were being pursued but not yet confirmed.

The memo explained that Section 108 borrowing would be repaid over 15 years from Community Development Block Grant (CDBG) funds, and that Malden is eligible to borrow up to five times its CDBG entitlement less outstanding commitments. It cited prior Section 108 loans the city used for Roosevelt Park and other projects.

On a motion by Councilor McDonald, seconded by Councilor Colon Hayes, the council voted to refer the loan authorization (paper 364-25) to the finance committee for detailed review. Councilors said referral was requested so the finance committee could examine projected principal-and-interest payments, confirm grant commitments, and weigh programmatic priorities.

Councilors and the mayor’s office described Malden River Works as a multi-part project intended to improve river access, address localized flooding and to provide storage that prevents salt runoff into the river. The memo was signed by Madison Sealey and Mayor Gary Christiansen.

The referral to finance does not itself authorize borrowing; it initiates the committee process to evaluate repayment plans, impacts on the CDBG program and other funding sources before any borrowing is approved.