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Committee forwards SD DOT loan amendment for Hotel Way, notes one withheld payment and $160,000 annual estimate
Summary
Renee Baker, finance officer, presented Amendment No. 1 to a loan agreement with the South Dakota Department of Transportation for the Hotel Way project; because the city pledged STBG funds as collateral, the state will withhold one annual payment until requirements are met. Baker said repayment comes from BID 2 funds and estimated the annual payment at about $160,000; the committee approved forwarding the amendment to council.
Renee Baker, the finance officer, told the committee that the loan amendment reflects the city's use of surface transportation block grant (STBG) funds as collateral for the Hotel Way loan. As a result, she said, the state will withhold one annual payment until the loan requirements are satisfied. Baker emphasized the amendment has no general fund impact because the loan is repaid from BID 2 funds.
Baker said the city has budgeted the loan repayment and estimated the annual payment at about $160,000. A committee member moved to approve Amendment No. 1 to loan agreement No. 911401 with the South Dakota Department of Transportation for the Hotel Way project and to forward it to the city council with a recommendation of approval; the motion carried on a voice vote.
