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Council agrees in principle to three-year, no-interest $65,000 loan to DDA; resolution to be drafted
Summary
City Administrator Jim Lancaster presented repayment options and council unanimously agreed to a three-year repayment (33% per year) with no interest for a proposed $65,000 loan to the DDA; a formal resolution will be drafted for a future vote.
At the Aug. 19 meeting the Milan City Council signaled its intent to provide a $65,000 loan to the DDA on terms of three annual 33% payments with no interest.
City Administrator Jim Lancaster presented several repayment models for the proposed loan, including an option to waive interest the first year and charge 3% in the final two years (administration estimated that choosing 3% for two years would amount to roughly $4,200 in interest). After discussion the mayor and council "unanimously agreed" to the three-year, no-interest repayment schedule. The minutes state a resolution will be drafted by the city attorney and presented to council for a formal vote; the minutes do not record that a final vote occurred on Aug. 19.
The minutes do not expand the acronym "DDA" or provide the DDA's full legal name; the record refers to the entity only as "DDA." The administration and the city attorney will prepare the draft resolution for a future meeting so the council can take a formal vote on the loan.
