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Milan council agrees in principle to $65,000 interest-free loan for DDA, resolution to be drafted
Summary
City Administrator Jim Lancaster presented loan models for a proposed $65,000 loan to the DDA; council agreed in principle to repayment in three equal annual payments with no interest and directed the city attorney to draft a resolution for formal approval.
City Administrator Jim Lancaster presented several repayment models for a proposed $65,000 loan to the Milan DDA at the Aug. 19 council meeting. Lancaster explained options including no interest or a staged interest schedule (no interest first year, 3% for the last two), estimating that two years at 3% would total about $4,200 in interest.
After brief discussion, Mayor Ed Kolar and the council unanimously agreed in principle to a repayment structure of three equal (33%) annual payments with no interest. The minutes record that the council’s agreement is preliminary; City Attorney Steve Mann will draft a resolution to formalize the loan and present it at a future meeting for a recorded vote.
The agreement in principle does not yet constitute a formal loan or appropriation; the minutes indicate that staff will prepare the legal resolution and documentation for council action. The council did not record a formal motion with a vote tally in the minutes for the loan agreement itself; the record states unanimous informal agreement and a planned future resolution.
