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City of Centerville <br />Council Meeting Minutes <br />January 27, 2021 <br />Mayor Love welcomed Ms. Wells, Mr. Larson, and Mr. Skogquist to the City. <br />2. ty Revolving Loan and Grant Program <br />Administrator Statz gave some background information on the low interest loan and grant program <br />that originally began through the EDA. He noted that the funds were initially set up when the City <br />built Chauncy Barett, however the City has not utilized the funds for quite some time. He <br />explained that it was been determined the HRA requires the grantee to the be the City. Staff is <br />recommending that this program be established as a City program, with recommendations for the <br />awards to come from the EDA. He noted that Councilmember King had contacted him with some <br />questions and he was able to get answers from the County. There is currently a balance of <br />$327,000 in the HRA account as of the beginning of 2020, and noted that about $50,000 is put in <br />from the levy. He noted that these are 2020 figures because the 2021 numbers are not yet ready. <br />He stated that the County feels very comfortable that there is enough operating income and <br />cushion to the capital fund to allow the City to spend some of that money on this Revolving Loan <br />and Grant program for the initial $25,000 to seed the loan and grant pool. He clarified that there <br />is no connection between these funds and the CDGB funds. <br /> <br />Finance Director DeJong noted that the City has an applicant who has completed a project and is <br />awaiting funding. <br /> <br />Mayor Love asked for an explanation of how Chauncey Barrett is connected to these funds and <br />asked if there are any potential buildings in the future that could be attached to these funds. <br /> <br />Administrator Statz stated that a number of years ago the City decided jointly with the County that <br />they wanted to use the HRA funds to create a building for affordable senior housing. The Council <br />invested the money to provide an amenity to the City that would allow life cycle housing. He <br />noted that there is an agreement with the County on some joint bonds and until those bonds are <br />paid off, the City is obligated to continue to keep this place operational and prop it up, if necessary. <br />As far as any future building, it would be the that there is a need <br />because Chauncey Barett is full and has a waiting list, so perhaps the Council may want to use the <br />money to build another 20 units. <br /> <br />Council Member Mosher asked if any other businesses had used this fund. <br /> <br />Administrator Statz explained that a grant was awarded to the Southern Rail for the construction <br />of an accessory building, but the work has not yet been completed, so they would be considered a <br />pending application, but noted that the timeframe may have technically run out. <br /> <br />Council Member King noted that he had spoken with Administrator Statz earlier today to ask some <br />questions including the possibility of getting Chauncey Barrett off of this account, so the full <br />amount of money could be utilized. He stated that his concern is for planning purposes, because <br />there is no way to know how much Chauncey Barrett may draw out of these funds. He stated that <br />he thinks the City should check more often, such as monthly or quarterly, to see what Chauncey <br />Barrett will do in order to track that more accurately. <br /> <br />Page 7 of 10 <br /> <br />