Agency discusses operationalizing resolution 2024-03 for large SDC invoices; board agrees to defer repayment until larger borrower emerges

Allie Camp and Nathan Bell briefed the Springfield Economic Development Agency on Oct. 13 about operationalizing a provision in Resolution 2024-03 that requires board review for invoices over $100,000 related to SDCs. Camp said the provision gives the board flexibility to consider cash on hand and project load when deciding the timing and method of repayment to the city.

Bell told the board the agency has had only one invoice over $100,000 under the SEDA SDC downtown program since its initiation. He explained staff were recommending flexibility so the agency can self-finance where appropriate and avoid expensive borrowing for small needs. “When we do go out and borrow, it's in our best interest to borrow as much as we can at that time,” Bell said, adding that holding funds can allow the agency to pay off obligations when it is economically sensible.

Camp noted that the city and agency have a memorandum of understanding that repayment can occur on a mutually agreed basis. After staff discussion, the board indicated by nods and comments that it was comfortable deferring repayment of the two larger SDC balances until a larger borrowing need arises; staff recorded that direction but did not bring a formal motion or vote. The agency then adjourned to an executive session.