Title
An ordinance to approve the Modification of Loan Agreement and Note between the City of Rock Hill and the South Carolina Department of Health and Environmental Control related to the cleanup of the Arcade Mill site.
Body
Staff recommends adoption of the attached ordinance to approve the modification of a loan agreement and note between the City of Rock Hill and the South Carolina Department of Health and Environmental Control (SC DHEC) related to the cleanup of the Arcade Mill site.
On October 15, 2005 the City of Rock Hill and SC DHEC entered into a loan agreement, in which the City of Rock Hill borrowed $425,000 to cleanup the former Arcade Mill property. This loan was made under SC DHEC’s Voluntary Cleanup program through their Brownfields revolving loan fund. The original final maturity date of loan was October 15, 2010. The City did not begin drawing down money from the loan until 2007, and in order to allow for the repayment of the loan over a six year period, SC DHEC has agreed to extend the loan to October 15, 2012. The current balance of the loan is $276,142.50. Through the adoption of the attached ordinance to approve the modification of loan agreement and note the City will make four loan payments of $69,035.62 each beginning in 2009. These payments will be made through the City’s annual CDBG funding.