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Commission Seeking Loan from Town
(posted 6.7.09)
The Speedway Redevelopment Commission is planning on tapping into the town's
General Fund since the commission's balance has fallen to $58,725 as of
June 1. The SRC plans to borrow $100,000 at the June 8 Town Council meeting.
The SRC needs to deposit $100,000 into an escrow account to purchase International
Village for an undisclosed price.
"As has been done previously to support the efforts of the Speedway
Redevelopment Commission, the Town is making a short-term interfund loan
to the SRC, this time for an earnest money deposit for the proposed purchase
of the International Village apartment complex," Clerk Treasurer Sharon
Zishka explained in a June 5 email.
In a May 18 statement, the SRC criticized Resource Real Estate for wanting
to conduct the International Village purchase agreement "without public
disclosure". The SRC refused to disclose the purchase price at its
May 28 special session, citing confidentiality, based on future requests
for proposals to the sell the property.
If the council approves the June 8 resolution, the council will need to
pass another resolution to borrow $100,000 from the Cumulative Capital
Development Fund to deposit into the General Fund.
The commission has yet to pay back any loan based on its tax increment
financing revenues.
In June 2008, the commission told the Department of Local Government Finance
that it would not use a special benefits tax to fund its projects.
The Speedway Redevelopment Authority's June 1 ending balance was $77,780.
The SRC has spent over $527,000 since March 2009. The SRC is able to use
money from the authority as the result of a resolution that allows the
SRC to submit claims to the SRA.
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