Denison approves $1.08 million pay request for wellness center and adopts 3-2 moral-obligation resolution

The Denison City Council on July 1 approved Pay Application 8 from Jensen Builders for the Crawford County Wellness Center, authorizing payment of $1,075,241.20 to continue construction work.

A resident, Dave Peterson, spoke during citizen concern and said he did not want the city to be responsible for unpaid donations and urged the council to prioritize housing. City staff member Garcia responded that the resolution before the council would declare only a moral obligation; she said fundraising for the wellness center has been completed and that pledged donations will be applied to loan payments rather than leaving unpaid obligations to the city.

The council then considered Resolution #2025-34 “Declaring Moral Obligation to Support Payments of Debt Service under a Certain Loan Agreement.” The motion to approve the resolution was made by Councilmember Zupp-Smith and seconded by Councilmember Logan. The roll call vote was Ayes: Zupp-Smith, Logan and Miller; Nays: Curnyn and Granzen. The measure passed 3-2.

Council members approved the pay application for the wellness center by unanimous motion earlier in the meeting. No amendment to the resolution was recorded. The council did not attach a formal budget appropriation or bond authorization to Resolution #2025-34 in the meeting record; the resolution text was recorded as introduced and approved at the meeting.

Next steps: with the pay application approved, construction payments will proceed according to the contract with Jensen Builders. The resolution creates a council-level statement of support that, per staff remarks in the meeting, reflects an expectation that pledged donor funds will be applied toward loan service rather than creating enforceable city debt.