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EDA staff outlines formal assignment of 2013 demolition loan and new industrial redevelopment fund
Summary
Staff said the 2013 $135,000 demolition loan will be formally assigned to the EDA (instead of the city council) and described an Industrial Redevelopment & Infrastructure (IRI) fund that will set aside loan repayments for future industrial projects.
Staff told the board about loan documents tied to a 2013 demolition loan (original principal $135,000) that were executed to the city council instead of the EDA and said attorneys are finalizing paperwork to assign the loan to the EDA to avoid bond‑rating implications for the city. The loan’s repayment schedule has been restructured to higher periodic payments and staff said repayments will be moved into a dedicated Industrial Redevelopment & Infrastructure (IRI) fund for future projects.
“We provided a loan for a $135,000 to tear down the building,” staff said. He told the board the first five years had low payments that later ballooned, and the EDA board had requested quicker payments; repayments will now be credited to a separate fund the board can use for industrial redevelopment or infrastructure needs.
Board members asked whether the payoff included any balloon payment; staff said the restructured schedule is fully amortized over five years with no balloon. Staff said the EDA already budgeted for increased payments through 2025 and that they will ask the city council to formally assign the loan to the EDA so records and authority align.
