The City Council also approved a resolution allowing the clerk treasurer to transfer funds from the City Development Fund to the EDA Grant for Tech-Farm Fund. The temporary loan is necessary for cash flow purposes.
The Tech-Farm project received a $1.1 million EDA grant for the development of infrastructure including roads, sidewalks, lighting, and drainage. The project is nearly complete and there is a need to pay invoices for the project. The grant money has not yet be given to the city.
The clerk treasurer told council members that the loan is only a temporary short term loan and that the grand administrators have been working on receiving the payment for the city. They had hoped that the federal loan payment would have been received before the end of the year.
The short term of the loan requires the city be repaid by a June 30th, 2011 deadline that was included in the resolution and meets the statutory requirements.