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Bay City council approves $14 million CDC loan and sales-tax agreement to move forward on aquatic center
Summary
Council approved a resolution permitting the Bay City Community Development Corporation to take a $14,000,000 loan and continue receiving sales-tax remittances to fund construction of a new aquatic center; staff stressed oversight and a need to finalize documents by the 25th to secure a 5.32% interest rate.
The Bay City City Council on a special-call agenda unanimously approved a resolution authorizing final documents needed for a $14,000,000 loan by the Bay City Community Development Corporation (CDC) and a sales-tax remittance agreement tied to construction of a new aquatic center. Staff said the documents would enable the CDC to receive sales-tax revenue and that the general certificate affirms the CDC’s authority to use that revenue for the loan.
An agency official (S5) explained that to secure a lower interest rate of 5.32% the CDC must finalize documents by the 25th and described plans to transport closing documentation to complete the loan. Several council members (S1, S3) raised procedural questions about late-received documents and asked that the oversight committee convene promptly to review operational exposures and fund-balance implications before ongoing oversight of CDC operations.
Staff (S3) noted the CDC’s financials appear healthy but cautioned about potential operational exposure in the first years and recommended setting aside funds. A council member (S4) said roughly $1,200,000 was in deposits, that closing costs of about $200,000 would be spent to close the loan, leaving an estimated $1,000,000 in fund balance after closing. The motion to approve the resolution and authorize signatures was made, seconded, and carried by voice vote with no recorded opposition.
