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DDA says it is "pretty much broke," authorizes chair to seek city line of credit
Summary
The DDA reported near-term cash strain and unanimously approved a motion authorizing the chair to negotiate and execute a city line of credit not to exceed $300,000; members said property holdings should cover loans long term but immediate cash is tight.
The Chair told members the DDA is "pretty much broke right now" and that outstanding attorney fees and unanticipated project costs have tightened the authority's finances. "But the fact of the matter is that the monies that we spent on the project across the street far exceeded what anybody anticipated," the Chair said.
Board members discussed options for short-term financing. The Chair said DDA-owned properties are worth roughly $12,000,000 and could cover loans when sales progress, but she asked the board for authorization to request that the city extend a line of credit. Jonathan, the treasurer, said recent payments included a large scheduled loan payment and that the DDA is likely solvent through January but needs a plan for 2026.
A motion to authorize the Chair to negotiate and execute a line of credit with city council, not to exceed $300,000, was made and seconded and passed unanimously. The Chair said the line-of-credit authority would be requested at the city council meeting; the board did not record individual roll-call votes in the transcript.
