Mr. McAndrews told the council that staff and consultants had pursued funding for the Southeast Twelfth Street project and the State Department of Health approved a 0% interest loan with a 10‑year term for $500,000 plus a 2% loan fee.

"The State Department of Health has approved a 0% interest loan with a 10 year term for $500,000 and a 2% loan fee. So at a total of 510,000, to cover engineering design, the hydro lot hydro hydrogeologic assessment permits, public involvement, bid documents, fees, taxes, legal, administrative, and audit costs," Mr. McAndrews said, listing the design‑phase expenses the loan would cover from College Avenue to Myra Road.

Councilmembers voiced support for the favorable loan terms. A motion to accept the loan, authorize the public works director or designee to sign the loan agreement and contract documents was moved, seconded and approved by voice vote.

Staff said these funds cover design and underground utilities work and that above‑ground improvements (intersection, sidewalks, landscaping) would be approached separately after utilities work is funded.