By: Donovan W. Mann – donovanm@977thebolt.com
Humboldt, IA – The City of Humboldt is entering a loan agreement with the Humboldt County Development Association following a public hearing.
City Administrator Travis Goedken tells KHBT about the details of the agreement between the city and the HCDA. The public hearing was part of the most recent meeting of the city council. The hearing was not required as part of the official process but the city felt it best so any general public could voice their opinions.
As part of the agreement the city agrees to loan the HCDA $642,500 so they can purchase 135.5 acres of land. The land is located north of the current Northwest Industrial Park. It is currently part of the Harvey Bjornson estate.
The loan is a 30 year loan at zero percent interest. The HCDA has agreed to provide all net revenue from the property, including cash rent or land sales to go towards repayment.
There is an exception to the repayment part of the loan however. If the city approves a project that is to be put on the land they will forgive a portion of the loan amount. This is a pro-rated amount per acres.
For example Goedken says if the HCDA has a new business that wants to build on a certain amount of the land. The city can agree to the development of the business and whatever acreage the business builds on will be pro-rated off the loan.
In order to provide the loan the city moved funds from their cash reserves in the sewage funds to the general fund. The city has a surplus of funds they were saving for updates at the waste water treatment plant. Those updates are now being funded by grants. Goedken also assures the reserves in the sewage fund is continuously growing and not getting depleted by this transfer.
There was no objections by the public to the agreement. Two resolutions required to make the agreement happen were both approved by council.