Malden council approves $1.5 million Section 108 loan for Malden River Works, including boathouse

The Malden City Council on a unanimous roll call approved an order authorizing the city to borrow $1,500,000 through a U.S. Department of Housing and Urban Development Section 108 loan to support phase two of the Malden River Works project, which the council said includes a permanent boathouse and a salt shed.

Councilor McDonald, chair of the finance committee, told the council the Section 108 loan is repaid from the city’s Community Development Block Grant (CDBG) federal funds rather than the general fund, and described the loan as a “key funding piece” that will not cover full construction costs but would allow staff to apply for remaining funding and move construction plans forward. “This is a program that we have used in the past,” McDonald said, explaining the city’s approach and the loan’s role in the project.

The committee heard written public comments read into the record from current and former Malden High rowers urging support for docket 364-25. A student who identified himself as a recent graduate said losing the boathouse reduced water practice days and created transportation barriers; two other writers — a Malden parent and a current Malden High junior — described how a permanent boathouse would protect equipment, expand access and support long-term program stability.

Alex Pratt, director of the Office of Strategic Planning and Community Development, answered councillors’ questions about the loan and grant mechanics. Pratt said the city’s most recent CDBG allocation is in the range of previous years and that the principal on the Section 108 borrowing would be $1.5 million amortized over a roughly 15-year term; he cautioned that the exact interest rate will be known only when the city executes the borrowing. Pratt also described outreach to increase participation from diversity-certified and small businesses in procurement for the project.

Councilors asked how the loan would affect annual CDBG programming and whether outstanding Section 108 obligations were nearing retirement; Pratt said the city has used Section 108 selectively for “transformative projects” and has retired or is retiring prior loans, and that staff monitor debt service so routine CDBG projects can continue.

The council moved the order on a motion by Councilor McDonald, seconded by Councilor Crowe, and adopted it by roll call (all voting yes). The council also noted that staff have appointed building committee members who will oversee construction and that passage of the order allows staff to proceed with HUD application work.