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Committee hears revolving loan fund status; staff reports $8.5M federal request tied to deteriorating downtown building
Summary
Staff told the committee the town’s revolving loan fund has about $65,000 available to lend (one loan five months delinquent) and that the town submitted an $8.5 million congressionally directed spending request to Senator Collins for a proposed multi‑use project connected to an aging downtown structure that members described as close to being declared dangerous.
Town of Norwalk — At the meeting staff updated the committee on the town’s revolving loan fund (RLF) and an $8.5 million congressionally directed spending request filed with Senator Collins’ office.
RLF status: staff reported two active loans with a balance available to lend of roughly $65,000 and one loan currently about five months delinquent. Staff said the original $100,000 seed for the RLF was administratively reduced by a 3% administration charge and that the fund’s intent is to revolve repayments back into new loans. Committee members asked about delinquency handling; staff said options include adjusting payment schedules or extending terms to recover funds and that staff will report updates on the delinquent account.
Federal request and downtown building: staff said the town submitted an $8.5 million congressionally directed spending request to Senator Collins for a proposed multi‑use project tied to a long‑vacant downtown building. Committee members described the structure as deteriorating and said officials have considered declaring it a dangerous building if the owner does not remediate or remove it; members emphasized the structure’s historical/architectural features and the community interest in redevelopment.
Next steps: staff will follow up with lenders and the delinquent borrower to explore options and will report back on RLF activity at the next meeting. Staff also said they will track any response from the senator’s office on the federal request.
