CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Adopt a resolution authorizing the City Manager to enter into a Line of Credit Agreement with the Riverwalk Foundation for an amount not to exceed $120,000.
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DEPARTMENT: City Manager's Office
SUBMITTED BY: Douglas Krieger, City Manager
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On April 17, 2018, Council voted unanimously to approve the final design of the Jaycees Park and to approve the park as an addition to the Riverwalk.
The park will be built by the Riverwalk Foundation with funding it receives from private donors. The total anticipated cost to build the park is approximately $420,000. Committed donations total approximately $520,000. The excess funding will be used to cover park maintenance and future costs.
The next step is for donors who have committed to funding the Jaycees Park to submit their donations to the Riverwalk Foundation. It is anticipated that all the pledges may not be tendered quickly enough for the Foundation to have sufficient capital to cover the initial costs of the project. For example, the Jaycees have already made a $40,000 donation, but the remainder of its $200,000 commitment is due incrementally over the next nine years (although the Jaycees expect to complete their commitment early).
DISCUSSION:
In order to assure that Jaycees Park can be completed timely, staff recommends that the City Council authorize the City Manager to establish a line of credit, as a construction loan, not to exceed $120,000 for the purpose of meeting the Riverwalk Foundation's construction expenses for the Jaycees Park project.
Units of local government may enter into agreements to use their revenues to pay costs, service debt, or extend loans related to activities that involve a public purpose. It is within Council's authority to determine that it is in the public interest to assist the Riverwalk Foundation to meet its monetary obligations concerning the establishment of the Jaycees Park. That a...
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