Title
Consider Cooperative District's recommendations regarding funding Farmers and Fishermens Market
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
During the City of Foley's Public Facilities District meeting the District members discussed various ways to cover the shortfall for the Farmers and Fishermens Market project.
There are several options for covering the shortfall of the project and they are as follows:
1) The City could cover the shortfall from the General Fund; or
2) The City could cover the shortfall from the General Fund and try to get reimbursements from various revenue streams that the Cooperative District creates at the Farmers Market; or
3)The Cooperative District requests the City consider being the guarantor on the United Bank revolving line of credit in the amount of $400,000.
The District members made a recommendation to approve the use of United Bank's line of credit in the amount of $400,000 with a 3% fixed interest as presented contingent on the City Council's approval to be the guarantor.
SOURCE OF FUNDING:
Please provide the amount requested: $400,000
Is this a budgeted item? No
Please provide the budgeted amount: $_____________ Account No. ___________________________
If budgeted, is this a capital purchase, capital project, or special fund? _________________________
Was this item included in the Fiscal Year Capital Projects Plan? Yes/No
If yes, please provide the amount included in Capital Projects Plan: $___________
Body
WHEREAS, the Alabama Coastal Farmers and Fishermans Market Project financing was discussed during the City of Foley Public Facilities Cooperative District meeting on August 12, 2013 and it was determined that the City of Foley received grant funds for a portion of the cost of the project, and
WHEREAS, the total cost of the project is projected to be $850,000, with the following grant available grants:
BP Deepwater Horizon Claims Administration $317,500 Received No Matching Funds Required
BP Deepwater Horizon Incident Grant $132,985.40 Received No Matching Funds Required
USDA $100,000 Awarded, Not yet received No Matching Funds Required
BP Deepwater Horizon Claims Round 2 $182,500 Pending No Matching Funds Required
WHEREAS, Round 2 of the BP grant in the amount of $182,500 includes $68,500 ($182,500 - $68,500 = $114,000) for marketing and not for the construction of the Market, and
WHEREAS, funds available for construction including pending grants amounts to $564,485.40, which leaves a shortfall of $285.514.60, and
WHEREAS, The City of Foley Public Facilities Cooperative District has recieved a proposal for a revolving line of credit in the amount of $400,000 from United Bank, and
WHEREAS, the Cooperative District made a recommendation to approve the use of United Bank's $400,000 revolving line of credit contingent upon the City Council's approval of being the guarantor.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Approves cash transfers up to $388,500 from the General Fund to the Project Fund with all or a portion being reimbursed by pending grant funds or other means as Council deems necessary.
SECTION 2: Approves being the guarantor on United Bank's revolving line of credit associated with the Coastal Alabama Farmers and Fishermens Market in the amount of $400,000, as submitted and made a permanent part of this resolution upon its adoption, in the case where grant funds fall short.
SECTION 3: This Resolution shall become effective immediately upon its adoption as required by law.