Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Council approves two economic development loans; funding sources for one loan still being finalized
Summary
Council approved a $100,000 loan for Family Cycle Works and a separate economic development loan to 3 Piece Bank Freeze Inc.; city staff said Community Development Block Grant funds will cover part of Family Cycle Works loan while the remaining $50,000 may come from a TIF district or a fire loan fund pending further coordination.
The council approved two economic development loans during the meeting: a $100,000 loan to Family Cycle Works for a project at 665 Dallas National Avenue and a separate loan to 3 Piece Bank Freeze Inc. for equipment at 5132 Osinski Avenue.
For Family Cycle Works staff said the $100,000 loan will be funded with a $50,000 Community Development Block Grant (CDBG) allocation and $50,000 from either Tax Increment Financing (TIF) District No. 7 or a fire-loan fund; staff said final confirmation of the second funding source remained under discussion and would be completed by the city's economic development team. Staff noted they are working to structure disbursements with as few draws as feasible for the borrower and to finalize prevailing-wage and disbursement mechanics if TIF funds are used.
Council also approved a loan to 3 Piece Bank Freeze Inc. to purchase equipment; the meeting record lists the item as a resolution approving a "$51 economic development loan" in the provided transcript excerpt. Council asked about hiring requirements tied to the loan; staff said failure to meet the hiring commitments would be treated as a loan default and could trigger the city's default remedies.
Both loans were approved by voice vote. Staff said they would continue to coordinate among CDBG, TIF and the city's fire loan/funding partners to finalize exact funding sources and repayment/disbursement mechanics.
Clarifying details recorded during the discussion: the Family Cycle Works loan was described as $100,000 with $50,000 of CDBG funds and a remaining $50,000 to be provided from either TIF District No. 7 or a fire-related lending program; officials said the second funding source had not yet been decided. For the 3 Piece Bank Freeze Inc. loan the transcript records the amount ambiguously as "$51" in the excerpt; staff should be consulted for the formal loan amount in the council packet.
