Council OKs loan to CEEF
Vendors at the 2009 Dew Days celebration will finally get their outstanding bills paid, thanks to a $23,000 bailout by the city of Farmington.
On Monday, the Farmington City Council agreed to a five year loan to the Castle Rock-Empire-Eureka-Farmington Areawide Enhancement Group. That $23,271 loan will help CEEF pay off the debt left after last summer's city celebration.
Two of the council members, Julie May and Steve Wilson, were out of town Monday and were not available to vote on the loan. In the past, May has voiced several objections to handing out a loan to a nonprofit agency, but neither council member requested the item be removed from this week's agenda.
Terms of the agreement require CEEF to use the loan only to pay off the debts incurred from last summer's event. And, it requires CEEF to pay those bills within 30 days of receiving the funding.
In the event there is funding left over once the outstanding debts are paid off, CEEF may use the remaining funds as start-up money for another city celebration in 2010.
The city requires CEEF to pay the full amount of the loan by July 31, 2015 at an interest rate of 3 percent.
With only three council members present, the loan proposal carried. All five elected officials will again vote on the proposal at the Oct. 26 economic development authority meeting, as they also serve on that board. The loan itself will come from the EDA, not the city council. If it passes EDA approval, a check will be issued to CEEF by the end of next week.