ADMINISTRATION - Joe Huss, Finance Director
Title
ACCEPT LOAN FROM BLAINE EDA FOR OPEN SPACE FUND
Background
In 2012, the Blaine EDA began to bank wetland credits as a tool to enhance and assist economic development in the City. In 2014, the City, through its Open Space Fund, began developing a wetland credit account of its own. The purpose identified for the City’s wetland credit account was to help fund the development of the Blaine Wetland Sanctuary (BWS). While the EDA has about 50 acres of wetland credits in its account, there are not yet any credits in the City’s account and none are expected until the early part of 2018. In the meantime, there is some desire to begin development of the BWS, and staff has solicited bids for two contracts totaling roughly $1.5 million for work to be performed in 2017. Currently, there are not sufficient funds in the City’s Open Space Fund to complete these contracts, and with the prospect of not having wetland credits to sell to provide funding for Open Space projects until 2018, staff is requesting the EDA approval of a loan of EDA general funds to the City to provide the funding necessary to get the BWS project off the ground.
Pursuant to the attached, the terms of loan are:
Loan amount $400,000
Term 7-years
Interest rate 2%
Payments due Annually on December 31
Other Interest only payments for first three years
Eligible for prepayment at any time during the term of the loan
Recommendation
By motion, adopt following resolution accepting the loan.
Body
WHEREAS, the City of Blaine has determined that development of wetland preserve is a high priority; and
WHEREAS, Blaine staff has developed a plan for construction of a wetland preserve to be known as the Blaine Wetland Sanctuary (BWS); and
WHEREAS, staff has determined that there is a shortfall of $400,000 in funding sources to implement Phase I of the BWS project; and
WHEREAS, staff has determined that there are Economic Development Authority (EDA) funds on hand to assist the City in completing Phase I of the BWS project; and
WHEREAS, the Blaine EDA has approved a loan in the amount of $400,000 to the City of Blaine Open Space Fund to assist the City in completing Phase I of the BWS project; and
WHEREAS, the terms of the loan and repayment schedule of the loan are per the attached.
NOW, THEREFORE, BE IT RESOLVED, that the City of Blaine accepts a loan of $400,000 to the City of Blaine Open Space Fund, under the terms and repayment schedule as set forth in the attached.
PASSED by the City of Blaine this 15th day of December, 2016.