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Lake Placid Council authorizes staff to pursue replacement financing for $4M sewer cash-flow loan; approves SRF grant application with attorney review
Summary
The Town Council authorized staff to initiate financing with Cruz Bank to replace an existing $4.0 million short-term loan tied to the septic-to-sewer grant, after a lengthy debate over loan structure, daily interest and collateral. The council also authorized submission of a $2.914 million SRF utilities grant application (subject to attorney review) and adopted an updated local mitigation strategy resolution.
The Lake Placid Town Council on Feb. 16 authorized staff to initiate replacement financing with Cruz Bank to resolve cash-flow needs related to the town’s septic-to-sewer project. Council members debated competing offers and loan structures — including a fixed lump-sum loan versus a delayed-draw or line-of-credit — before voting to direct staff to pursue Cruz Bank terms with a not-to-exceed interest rate of 4.99% and an 18‑month term.
Finance staff explained the background: the town currently has $4,071,055.56 outstanding on a short-term financing arrangement used to bridge invoices for the DEP-funded septic-to-sewer grant. The town has been incurring daily interest on that…
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