Columbia Borough Council authorized Payment No. 1 of $125,838.47 to Iron Eagle Excavating for the McGinnis Innovation Park project and heard an update that the state loan tied to the site needs formal adjustments to meet state debt rules. The council voted unanimously to release the payment during its Sept. 9 meeting.

The borough solicitor, Sean Gable, told council that the Commonwealth financing authority’s BIOS loan, as drafted, conflicted with the Local Government Unit Debt Act. “The big issue is that the terms of the BIOS flow do not comply with the terms of the Local Government Unit Debt Act,” Gable said, and recommended two short ordinances to provide the lender with mortgage security and to align the loan repayment trigger with state law.

The payment approved Sept. 9 covers early excavation and a stone driveway at the McGinnis site. Heather (borough staff) confirmed the borough has the funds on hand and described the entrance work as improving site appearance and limiting mud on public streets.

Why it matters: the McGinnis Innovation Park is a long‑term economic development project for the borough. Council members and staff said resolving loan paperwork and payment timing quickly is needed so the borough can close with the Commonwealth Financing Authority and proceed with site work and future marketing.

Supporting details: Gable said the financing authority agreed to allow loan repayments to begin at the earlier of two years after closing or when the property is sold, which would bring the BIOS loan into compliance with the Local Government Unit Debt Act. He said the authority’s attorney has prioritized the borough’s file and that, once the ordinances and a few closing documents are completed, the loan closing should occur within days.

The council also discussed accounting for McGinnis project costs and clarified that earlier estimates in borough materials overstated outstanding draw requests; staff reported they could account for prior charges and that the borough is not facing the multi‑million shortfall some documents had implied.

Council action and next steps: Council approved payment No. 1 to Iron Eagle Excavating, 125,838.47. Solicitor Gable said staff will present two brief ordinances at the next meeting: one granting mortgage security to the financing authority and one amending the loan repayment trigger. The borough expects to pursue closing once those measures are adopted.

Provenance: Council discussion and the vote on the payment began in the public meeting at the agenda item for the McGinnis Innovation Park (motion to authorize Payment No. 1 to Iron Eagle Excavating, timecode ~4055). Solicitor Sean Gable’s explanation of BIOS loan compliance and recommended ordinances occurred later in the meeting during staff reports (timecode ~8151).