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City to restructure loans for day care centers

July 16, 2019

Two Webster City child care centers will have restructured loan agreements following action taken by the Webster City City Council Monday night.

Councilman Logan Welch told his fellow council members that he serves on the Riverview Day Care’s board as a liaison to the council because of a large loan that was granted to the day care.

Welch said a loan issued several years ago in the amount of $167,167 had been paid down to $89,130 as of April 1.

“The request is that every dollar we’ve paid in interest be paid to the principal. That would bring the balance down to $29,000,” he said.

“As you can see, this interest fee adjustment would be a huge benefit to the daycare totaling around $60,000,” he said.

Welch added that he believed the City Council had an obligation to support, encourage and enhance the availablity and affordability of quality child care.

The council voted to forgive the interest on the Riverview loan.

Bob Schulz of the Webster City Day Care board said that facility’s loan had come in the form of the sale of the building to the day care. The original price of the sale was $300,000 at 3 percent interest.

“The day care has attempted to make monthly payments but frankly, the money sometimes just isn’t there,” he said. The loan total has climbed to more than $400,000 with interest charges. Schultz said it was unlikely that the loan could be paid off in the foreseeable future.

Schultz said the day care could agree to the same interest forgiveness as they council had granted for Riverview. But ideally, he said he’d like to see the loan forgiven.

Councilman Matt McKinney made a motion to forgive the interest, apply what has been paid already to the principal and to then restructure the loan over a 30-year period.

The council authorized City Attorney Zach Chizek to draft the agreements which will then be brought before the council again for approval.

Also Monday night, the council approved the recommendations from the Hotel/Motel Tax Board funding of grants to eight local organizations. Board Chairman Andy Sowle presented the projects and the recommended funding levels

• Career Ag Academy: Engineering costs: requested $50,000; $20,000 recommended funding

• City of Webster City: Solar Art Sculpture in City Plaza; requested $6,153; $5,000 recommended

• Jane Young House Foundation: Front and back porch repairs; requested $5,805.80; $4,000 recommended

• Legacy Learning Boone River Valley: social media marketing: requested $15,051; $5,000 recommended

• LIFT WC Inc.: Reinstall working bathrooms at Elks Building; requested $15,000; $15,000 recommended

• Sons of the American Legion: Webster City Fly-in Lunch: requested $1,813.67; $1,500 recommended

• TTMM Promotions dba Hamilton County Speedway: Marketing for 6th Annual Summit USRA Nationals; requested $15,000; $6,000 recommended

• Wilson Brewer Historic Park Committee: First courthouse renovations: requested $30,000; $8,000 recommended

The requests for this round of grants totaled $138,823.47 with an available balance of $79,063.47. The board recommended funding a total of $64,500.

The council unanimously approved the funding, with the exception of the Jane Young House request. Councilman Jim Talbot voted against the request, stating that he disagrees with the funds being used for maintenance.

In other action, the council:

• approved a request from St. Thomas Parish Youth Group to close Des Moines Street between Bank and Water on Sunday, Sept. 22 for a car show.

• approved the second reading and waived the third reading of a proposed ordinance providing for the vacation of a portion of Third Street in the Lawn Hill Addition

• accepted and executed an easement with Darren Hemmen and Michon Leddy-Hemmen in connection with the disposal of a right-of-way and authorized a quit claim deed conveying the property to Hemmen and Leddy-Hemmen

• approved a 90-day extension to the preliminary plat approval concerning Dean’s Ridge Subdivision

• approved change order No. 2 for the 2018 Wilson Brewer Park Cabin Foundation project with Peterson Construction, involving the moving of the cabin chimneys

• approved a motion for additional funds for the Wilson Brewer Cabin Foundation project

• Awarded the contract to Castor Construction for the 2019 Water Main Repair Project at a total cost of $167,758.

Paul Dahl of Webster City again addressed the council during the public comments. He asked the council and acting City Manager Kent Harfst to clarify why he had been banned from Fuller Hall and the outdoor pool.

“This is my second request to the Webster City Council for a review of my banishment from Fuller Hall and the pool,” he said. “I’m going to come one more time. I am seeking legal counsel.”

 

View this article as it originally appeared in the Daily Freeman-Journal.

Last modified: July 16, 2019

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