The Marshall City Council approved the second reading to execute an Intergovernmental Loan Agreement with the Marshall Municipal Utilities’ Board of Public Works during its meeting on Monday, May 3.
Mayor Julie Schwetz said it doesn’t look like the city is going to get money from a grant to help pay for the demolition project.
With the approval of the loan agreement- the money from which the city will use to pay for the demolition of the dilapidated buildings on the campus formerly known as the Marshall Habilitation Center- and later in the meeting, the council was asked to approve an ordinance to execute an agreement between the city and Remco Demolition LLC for the work to be done.
MARSHALL COUNCIL APPROVES FIRST READING OF INTERGOVERNMENTAL AGREEMENT WITH MMU BPW kmmo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kmmo.com Daily Mail and Mail on Sunday newspapers.
The Marshall Municipal Utilities’ Board of Public Works approved an Intergovernmental Loan Agreement with the city of Marshall for the city to borrow funds from MMU to pay for the demolition of buildings on the property formerly known as the Marshall Habilitiation Center during its meeting on Thursday, April 15.
According to the agreement, the city promises to pay MMU up to $1.7 million plus 10 percent as a contingency or so much as may be advanced.
It is like a construction loan, so MMU will not be lending the city a lump sum of $1.7 million plus the 10 percent contingency. Instead, MMU will pay the bills for the demolition as they come due, drawing out of the loan amount.