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Board approves up to $1.5 million grant and bonding to support LVA construction loan
Summary
The Litchfield Board of Finance voted unanimously to approve a grant agreement and bonding authorization of up to $1.5 million to reduce LVA's construction loan; the agreement includes reversion of ownership to the town if LVA defaults.
Jeffrey Zullo presented a grant agreement that would provide funding from the Town to assist with LVA's construction loan and asked the Board to approve up to $1.5 million in bonding for the grant.
Zullo said the agreement provides $1.5 million from the Town to pay down the construction loan; if LVA defaults, ownership of the building would revert to the Town. He described the approach as cost-advantageous, using tax-free debt to reduce the project's cost, and said Borghesi's construction contract is slightly under budget at $1.81 million with a late June or early July finish. Chairman Sam Olmstead and other members discussed cost-sharing with Morris and noted that Morris currently pays LVA for one crew ($223,000) and should contribute to debt service and rent on the new building.
Motion: Elliott Fuessenich moved to approve the LVA grant agreement with an amount of up to $1.5 million; John Keilty seconded. Upon vote, all voted aye and the motion carried.
