The city council will consider approving a cash-flow loan
According to Mayor Scott Eisenhauer Federal dollars needed for the Kohl’s development project haven’t been released by the government yet. Tonight, the city council will consider approving a cash-flow loan for the project as a result. city comptroller Gayle Lewis and Scott Eisenhauer would be authorized to execute the Small Business Loan grant to meet a portion of the city’s obligation to Continental Properties which the site developer.
They also would borrow the remaining portion needed from the general funds, sanitary sewer, and solid waste and working cash. On April 30, 2012, which is the end of the fiscal year, the loans will be repaid. A $2 million incentive package for Kohl’s, has been put together by the city. For developer incentives for the Kohl’s project, the city has earmarked $800,000 in federal and state economic development funds. A $1.2 million line of credit which includes site work, land acquisition and other improvements is being obtained to finance the remaining project.
Aldermen also will consider approving cash flow loans for the Danville Mass Transit fund, Community Development Block Grant fund, police stimulus money fund and Danville Area Transportation Study fund. Because the grants require the funds to be expended before they can be reimbursed, the cash flow loans might be needed.