 Photo by Becky Polaski Bob Yoder addressed members of city council on Monday night with regard to applications for funds from DCED for the Downtown Hotel Project.
By Becky Polaski
Staff Writer
Members of City Council approved a pair of resolutions regarding the filing of proposals for funds with DCED in the amounts of $275,000 and $25,000 for the Downtown Hotel Project during their meeting on Monday night.
Bob Yoder addressed members of council about the purpose of the resolutions. He explained that the $25,000 is a predevelopment grant that becomes a loan as development moves forward and will be repaid to the city by company planning the hotel project. The $275,000 is a loan to the development entity and will also be repaid to the city with a mortgage and a note. “The reason that we’re asking for these is because of the demolition that has to be done and the higher cost of land to acquire the land that we need downtown and we also have to move some fill in to bring it up to above the hundred year flood plan, which was all part of the total cost of the project,” Yoder said. “We already talked to DCED before we prepared the applications so they are aware that they’re coming.” City Manager Dave Greene asked Yoder whether the money, once repaid to the city, would go back to DCED or if it would be kept by the city for future redevelopment. “The city gets to keep the whole $300,000 plus the interest,” Yoder responded. The city will then be able to use the money for future developments. Yoder added that the developing entity will also enter into an agreement with the city taking the city off the hook if the money is spent for the wrong reasons. “If it becomes ineligible then that entity will then have to pay the city back so the city can pay the ineligible stuff back to DCED,” Yoder said. “It is called a cooperation agreement, which we already have two cooperation agreements today on the Canadensis Building with the city.” Resolution 10-3 and 10-4 were both approved separately by members of council.
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