TO: Finance Committee
FROM: Kevin Sing, Director of Finance
SUBJECT:
title
Ordinance Approving a $3,500,000 Loan Agreement with the Joliet Public Library
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BACKGROUND:
The Joliet Public Library has requested a $3,500,000 loan to finance their remodeling project at the Black Road Branch. The current scope of the project is:
• New paint and carpeting
• Separate youth and adult areas for quiet/study/business
• Provide a play area for children/youth
• Include more private study rooms/collaboration rooms
• Reconfigure an extremely problematic circulation area and staff space
The proposed loan would be for a term of 20 years at market interest rates. The Library would have the ability to prepay the loan without penalty and request one refinance during the term. The loan agreement provides the City a lien on the Library’s property tax receipts to ensure payment and requires that 3% of the Library’s property tax be allocated toward capital improvements.
CONCLUSION:
If approved, the City would provide the Joliet Public Library a $3,500,000 loan from our investment pool at a market interest rate.
RECOMMENDATION:
recommendation
It is recommended that the City Council approve this ordinance.
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