Council approves $18 million interim loan and appropriation for regional recycling center

The Grand Junction City Council on April 16 authorized short‑term interim financing and a supplemental appropriation to advance a regional Materials Recovery Facility (MRF) project intended to serve the Western Slope.

General Services Director Jay Valentine presented the loan request: an $18 million interim loan from A and B Bank at 6.5% interest and a 1% origination fee, due December 31 of the year the COPs (certificates of participation) are issued to permanently finance the project. Valentine said the unused loan balance would be held in the Local Government Investment Pool to earn interest while minimizing net borrowing cost. He said the interim financing would accelerate real estate closing, allow the city to secure grant funding and then set the definitive amount for COP issuance. “This interim financing is meant to accelerate the project as it takes a little longer to issue COPs,” Valentine said.

Valentine provided a high‑level budget estimate: roughly $5.6 million for land and building acquisition, about $1.5 million for building improvements, roughly $10 million for optical/robotic equipment, and a contingency of roughly $1 million. The city plans to close on the property and later return for approval of the design‑build equipment procurement and the COP issuance that will refinance the interim loan.

Council discussed regional benefits and public‑private collaboration. Several council members praised the project as important for the Western Slope because hauling recyclables out of the region is currently expensive; the MRF would make local recycling more economical.

A public commenter asked which materials the facility will accept; staff offered to provide details after the meeting. Council then voted 6–1 to approve the loan ordinance (Councilmember Simpson voted no). Valentine said the city will pay the interim loan with COP proceeds once issued.

Council also approved a $19 million supplemental appropriation in the solid waste and recycling enterprise fund to spend loan proceeds and project costs; that supplemental appropriation passed 6–1 as well. Councilmember Stout moved both measures; Councilmember Winn seconded the loan ordinance vote. Staff said they expect construction and operations to continue through mid‑2026 and that additional grant applications and partner contributions may reduce net capital needs before final COP issuance.