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City approves emergency loan applications

Acting to soften the economic blow to local businesses because of the COVID-19 pandemic, the Concordia city commission approved two emergency business loan applications for Easy G Sports Grill and El Puerto Mexican Restaurant during its regular meeting Wednesday night.
Each of the emergency business loans is for $25,000. They are three-year loans with a zero percent interest rate. The first payment is deferred for six months.
The loans come from the Community Development Block Grant Revolving Loan funds.
“One of the things the Department of Commerce has said is that those of us that have Community Development Block Grant Funding Revolving Loans, whether they be countywide loans or citywide loans, they want us to use those funds,” CloudCorp executive director Kim Reynolds said, “They said we want you to use all of them. Use the funds and help your small businesses.”
The city made the Emergency Response Loans available to help small businesses cover operating expenses during the economic crisis created by the COVID-19 shutdown.
Reynolds said that they were encouraged to loose the application, don't make them nearly as hard to get; waive all of the fees to apply; be aggressive, error on the side of help; make sure the business was a viable business up to this date; and make sure it is in the best interest of the community.
Businesses applying for the loans must prove how COVID-19 has hurt their business, and there is a potential they could close if they don't receive the funding.
The maximum a Concordia business can apply for is $25,000. The funds can be used as working capital.
Businesses approved for loans will receive half of the funds at the time of the loan closing. The remaining half will be released to the businesses after invoices and payroll expenses equal to the amount are submitted to CloudCorp.
The Concordia Revolving Loan Fund has about $500,000 available.
City manager Amy Lange said that there was a discussion to cap the amount used for the emergency business loans at $300,000 so there would be some reserve funds if needed over the next three years for projects that do qualify for the Revolving Loan funds.
Lange said that the state may not allow there to be a cap on the amount of funds used.
“They want us to use it all,” Reynolds said.
Reynolds said that the funds made available to Easy G Sports Grill will help retain eight jobs and the funds for El Puerto will help retain nine jobs.
In other action taken during the meeting, the commission authorized Lange to enter into a new supplemental contract amount of $235,100 with Professional Engineering Consultants, PA for the design of Phase 2 of the improvements to the city's wastewater treatment plant.
The original contract amount of the design phase was $149,600.
The contract outlines the supplemental design agreement for Phase 2 of the project associated with the reactor, lime, silo, auger and building extension. Also added was the grit equipment evaluation. The supplements boost the cost contract by $85,000, bringing the total to $235,100.
Sarah Unruh, professional engineer for Professional Engineering Consultants, PA, met with the commission during a study session in January to discuss making the change from producing Class B biosolids to a Class A product.
A Class A product can be applied to any ground including public, private and agriculture.
Jeremy Arnold, Utilities Department director, said that an agreement was reached to move forward with the plan to make the switch to producing a Class A product.
Making the move to Class A biosolids will require a 20-foot extension to the north side of the administration building at the treatment plant, along with the installation of new equipment.
Funding for the design of Phase 2 is coming from the $10 per month charge to city water customers that was implemented for covering the costs of Phase 1 of the treatment plant improvements.
The total cost of Phase 1 was $2,749,140.53.
A $5 per month charge was added to water customers in December 2013. That was increased to $10 per month in December 2014.
The additional $10 per month charge is anticipated to remain in place until the retirement of bonds for both phases.
It was recommended during the study session in January that a new $4 per month charge be added in January 2021 to fund the construction and inspection of Phase 2. That is a month after the $2 per meter charge for swimming pool improvements ends.
Arnold, in a statement presented to the commissioners, said that a discussion of a pause after the design phase has been brought up because of the COVID-19 disturbances causing the economy to be on a temporary downturn. The basis for this is that the city already has the money for the design, but proceeding with the actual project will require the additional $4 per month charge to water bills which could cause more resident hardships.
The commission approved a resolution adopting the Hazard Mitigation Plan.
Every five years, the Federal Emergency Management Agency Hazard Mitigation Plan for Region F must be approved by the Kansas Department of Emergency Management.
A final step on the approval process for the plan is for the governing bodies of organizations included to adopt the Hazard Mitigation Plan.
Adoption of the plan provides the city access to hazard mitigation funds through the Hazard Mitigation Grant Program, Pre-Disaster Mitigation Grant Program, Repetitive Flood Claims and a variety of other state and federal programs.
Counties included in Region F are Cloud, Clay, Ellsworth, Jewell, Lincoln, Mitchell, Osborne, Ottawa, Republic, Saline and Smith.
An application from Nathan Regnier and Katelin Steinbrock to accept a house at 2118 Republican St. into the demolition program and authorize the city manager to sign a contract with the owner based on the lowest bid of $7,250 from Snavely Excavation was approved by the commission.
The reimbursement will be in the amount of $3,625.
The commission approved an ordinance during its previous meeting to change the zoning at 2118 Republican St. from R-1 Low Density Residential to R-2 Medium Density Residential.
The application for rezoning was submitted by Regnier and Steinbrock based on plans to remove the existing structure and construct a two-family dwelling.
Commissioner Chuck Lambertz said that he didn't have any reservations about accepting the house into the demolition program because it follows the guidelines that are set, but would like to request that the demolition program be re-evaluated.
“In regards to insurance payments for houses that have been condemned or in this situation where we have somebody that has the means to purchase the property, has the means to build a new property, then there might be the means to take care of this themselves and allow us to use those demolition funds to apply to other properties,” Lambertz said, “I think that would be a better use of our resources, as limited as they are. I think this is a good program. I don't think this is outside of our regulations and guidelines so I am going to support approving it, but I think philosophically I have difficulty doing so.”
Lange, during her manager's report, informed the commission that the Citywide Cleanup, scheduled for April 20-24, has been cancelled.
“We just don't believe we are going to have the staffing to do that,” Lange said.
Lange said she is encouraging residents to perform their own spring cleanup, haul their own items to the landfill.
The decisions on Summer Recreation activities, including the opening of the Concordia Municipal Swimming Pool, will not be made until at least May 1, Lange said.
The city will extend the issuance of free dog tags through the Month of April.
The lobby at City Hall will continue to be closed for the next few weeks, so residents are asked to mail or email the information for dog tags, and the tags can be mailed to them.

 

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Concordia, KS 66901