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Council addresses Habitat for Humanity request for $7.5 million line of credit and options for former fire station site
Summary
Council reviewed a Habitat for Humanity request for an unsecured $7.5 million line of credit for the Merriment Village Homekey project and agreed to continue operating under the existing contract while seeking more information.
YUBA CITY — Councilmembers reviewed a recent letter from Habitat for Humanity asking the city for an unsecured $7.5 million line of credit to advance Merriment Village, a project under contract with the city and financed previously through a Homekey award and gap funding efforts. Councilmembers expressed concern given the city’s budget deficit and declined to add a request for a city line of credit to the agenda at this time; the mayor said the city will proceed under the existing contract.
City Manager Diana Langley said Habitat had previously been expected to secure unspecified gap funding and that the city received the Habitat letter in the previous 24 hours asking for a $7.5 million unsecured line of credit. Langley said the city is in a budget deficit and indicated reluctance to provide additional unsecured city financing. Councilmembers said they want the project to move forward under the contract but also asked staff to return at the next meeting with a recommended path if Habitat does not provide a formal withdrawal letter for the city-owned former fire station property adjacent to the Moose lodge; the city could then consider offering the parcel on the open market to replenish general fund coffers.
Vice Mayor Boomgaarden, who serves on the Habitat ad hoc, asked that staff cancel a near-term ad hoc meeting and instead schedule a comprehensive Habitat presentation to the full council in April outlining other projects, funding status and timelines. Council agreed in principle to request a complete report from Habitat at a future meeting so that council can evaluate the organization’s ability to meet contract deadlines and funding commitments.
No formal vote was recorded to extend city credit. Council’s action was procedural direction to continue under the contract, ask Habitat for documentation, and direct staff to return with options relating to the former fire station property if Habitat does not provide a withdrawal letter.
