Ferndale City Council has approved an interfund loan from its general fund cash reserves to its car parking fund to be no more than $ 2 million to cover the costs of a previously untaxed portion of “The Dot.” .
FERNDALE – Ferndale City Council at its June 22 meeting approved an interfund loan that will cover the costs of a previously untaxed portion of the development on Troy, also known as ‘The dot’.
The board approved a loan in an amount not to exceed $ 2 million from its general fund cash reserves to its car parking fund. City Manager Joe Gacioch noted during the meeting that the general fund’s cash reserves are not the same as the general fund’s operating fund.
The loan will be repaid over a period of five years at an interest rate of 1%. With interest, the general fund is expected to recover $ 2,051,250.
“This suggests that we don’t understand the final value of the loan, but it will not exceed $ 2 million,” he said. “The goal would be to minimize the value of the loan as much as possible. “
Earlier this year, it was discovered that the eastern part of the fourth floor of The Dot was priced in the original tender documents. At its February 10 meeting, the board approved spending of up to $ 1 million on the floor. This $ 1million approval was only part of what was needed for The Dot, and it’s included in this most recent approval.
The point was on schedule to be completed in the spring. However, the COVID-19 pandemic has hit Michigan and forced construction to stop.
“We initially presented city council with an unexpected change request in February that we knew would greatly disrupt the project’s budget,” Gacioch said. “We presented initial options and have since walked through those options. However, in addition to this are the implications of COVID-19 on the parking fund and only on the downtown system in general, which certainly also had additional negative effects that are still unknown on the performance of the parking system. parking until the end of the year. “
According to city documents, the economic and financial disruption to the project caused by the COVID-19 pandemic, as well as the construction and commercial limitations resulting from Governor Gretchen Whitmer’s stay-at-home order “also continued to persist. be factors in the project. unanticipated progress and cost adjustments.
City Councilor Laura Mikulski said she was thrilled to see the project come to an end, but disappointed that it took so long to get there.
“I think the intentions behind the project were noble, and I think overall it will be a huge asset to our city,” she said. “It’s just unfortunate that with any kind of big, innovative project, something that really hasn’t been seen in Michigan, it’s unfortunate that it takes longer and costs more, but in the end, this will suit the town of Ferndale better. . “