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Keokuk Council authorizes full payoff of Southeast Iowa Development Center loan to avoid new debt
Summary
Keokuk City Council voted Aug. 21, 2025 to pay off the outstanding loan tied to the Southeast Iowa Development Center, accepting a payoff quoted at $245,664 (if paid Aug. 22) or $246,274 (if paid Aug. 31) to eliminate future interest and administrative obligations under the MOU with KEEDC.
Keokuk City Council voted on Aug. 21 to authorize paying off the outstanding loan related to the Southeast Iowa Development Center and to dissolve the existing memorandum of understanding with the Kikak Economic Development Corporation (KEEDC).
City staff presented the council with two payoff figures: $245,664 if the city issues payment on Aug. 22, 2025, or $246,274 if payment occurs on Aug. 31, 2025. Staff told the council that paying the loan in full would eliminate ongoing interest payments, avoid adding new debt, and remove the administrative burden of formally assuming the loan under a new agreement.
Council and staff discussed which fund would initially carry the cost. Staff said the payment would be recorded through the capital equipment fund (fund 303) for tracking purposes and that the general fund would ultimately cover the expense through an internal transfer. No alternative sources were proposed during the discussion.
The council moved and seconded the resolution to authorize full payoff and to dissolve the MOU; the motion passed by council vote.
What happens next: staff will proceed with the payoff at the timing the finance office determines most advantageous and will complete the administrative steps to terminate the MOU with KEEDC. The council did not detail any additional commitments or reuse plans for the property in this session.
