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Council approves $100,000 zero-interest loan note to fund Kitty Corner parking installment
Summary
The Eldora City Council approved a $100,000 general fund note to cover the city's initial payment for a parking lot at Kitty Corner; the loan will be provided by the Eldora Industrial Development Corporation and staff said the city's prior discussions allowed responsibility up to $200,000.
The Eldora City Council approved a $100,000 general fund note to provide gap financing for a parking-lot project near Kitty Corner.
At a public hearing, staff said the city must borrow the money from the Eldora Industrial Development Corporation to make the first installment payment on the Kitty Corner parking lot; the loan was presented as zero-percent interest. Resident Jerry Kramer asked what the loan would be used for and whether the city could exceed previously discussed cost estimates; staff reminded the council that earlier cost estimates for the project approached $250,000'$280,000 and that the city had discussed responsibility of up to $200,000 for parking.
Council approved resolution 4253535 authorizing issuance of the $100,000 note; roll call showed Mike, Miley, Don and Carrie voting in favor. The council closed the public hearing before taking the vote.
The loan is intended to cover the city's first installment on the project; staff said the alley paving adjacent to the project is being done at Fairway's cost. The council did not specify a repayment schedule in the public discussion beyond confirming the loan agreement would be set up with the industrial board to pay over a period of time.
Next steps: staff will complete the loan agreement documentation and proceed with the payment schedule through the industrial board as authorized by the resolution.
