At its Jan. 8 meeting the Benton Harbor Brownfield Redevelopment Authority reviewed a previously approved extension of a $25,000 loan (repaid over five years with annual $5,000 payments plus 1.5% simple interest) and heard from the borrower, identified in the record as Ms King, who said she could not secure the requested surety bond.

Ms King told the board she had pursued multiple insurance and bonding firms and that brokers indicated a bond guaranteeing repayment of a Brownfield loan to an individual developer is not commercially available. She submitted a written request asking the Authority to proceed without the surety bond and reiterated her commitment to complete the project and repay the loan.

Staff (Teresa Searls, Fishback) and board members described the board’s fiduciary obligation to protect public funds and reminded members that the Authority had already provided substantial support to the borrower in the form of prior funding. Board discussion focused on two practical alternatives: (a) require a lien on property or other collateral to secure repayment, or (b) identify a different insurance/bonding mechanism if available. Members also repeatedly emphasized the need for a uniform policy that sets minimum requirements for loans and other direct financing going forward.

No motion to rescind or change the loan terms was recorded at the meeting. Staff agreed to continue researching bonding options (including surety markets and insurance substitutes), to confer with the borrower about potential liens or other collateral, and to send any draft loan agreement to the board’s legal counsel for review before funds are disbursed.

Next steps: staff will consult bonding and insurance providers (including additional local surety brokers) and present options at a future meeting; the board asked staff to draft formal loan and collateral policy language for consideration at a strategy session or retreat.