The city’s Board of Public Works and Safety approved a revolving loan agreement with Patriot Real Estate LLC Wednesday.
Funds from the $278,305 loan will be used to repay the E.D.I.T. bridge loan provided by the city to Patriot in August 2012. The loan carries a term of 218 months at a fixed rate of 2.5 percent.
When Patriot was first looking to purchase its building at 2500 N. Union St., it did not qualify for a revolving loan. As a means of securing funding for the building, the city provided the loan to Patriot through E.D.I.T. funds.
“When Patriot first began, they needed funding to get things started to obtain credits from the state and federal government,” City Director of Operations Randy McKay said. “They were floated a loan through E.D.I.T. Now that they’ve obtained that funding, they are repaying the E.D.I.T. fund.”
The Board of Works also awarded a bid to Deichman Excavating for a sewer separation project that will take place on Market Street. The bid for the project was for $275,640. The city’s engineering department estimates the project will cost $277,940 to complete.
The sewer separation project will reduce combined sewage flow and re-route a sewer line for the new downtown YMCA project on Market Street from Superior Street to Walnut Street.
Construction on the project is expected to begin in early August and continue into October.
Martin Slagter can be reached at 765-454-8570, email@example.com or on Twitter @slagterm.