The Centralia City Council Monday night will be asked to approve a resolution to participate in a $500,000 Intermediary Relending Program made available by the federal government.
City Manager Kory Smith says the low-interest revolving loan program gives the city an additional means of spurring economic development.
Under the terms of the program, the city would pay back the money at one percent per annum over 30 years. They would then make loans available to local businesses not to exceed $250,000 at a five percent interest rate payable up to 15 years. The loans could not finance more than 50 percent of the total cost of any project.
Loan applications would be reviewed by city staff and a newly created seven-member loan committee comprised of local bankers and higher education officials. The recommendations would then be brought before the city council for ultimate approval or denial.
The city originally wanted to apply for $ 1 million through the program, but the amount had to be reduced due to federal budget cutbacks.
In other action, the council will be asked to approve a four-year agreement with the Centralia City School Board 135 to continue the school resource program. The grade school board has already approved the agreement.
The council will be asked to rezone property at 325 Walnut Hill Road from Highway Business to Industrial for a business that wants to operate at that location.
Smith wants the council to reject a low bid for pavement marking of $79,827 because it exceeds the engineer’s estimate.
The meeting begins at six on Monday night at Centralia City Hall.
