Neillsville City Council and Economic Development Committee Approve Acquisition of $1.5 Million Loan for Memorial Medical Center
Wednesday, June 25th, 2014 -- 8:25 AM-The Neillsville City Council and Neillsville Economic Development Committee have approved the acquisition of a $1.5 million loan for Memorial Medical Center.
During the common council meeting, the council approved a resolution borrowing $1.5 million which will be distributed to the Economic Development line of the budget. Economic Development will then lend that money to Memorial Medical Center. They will acquire the loan from Citizen?s State Bank of Loyal at an interest rate of 3.25%. The city will make two payments a year, of $88,448.96, on January and July 1st for 10 years.
During the Economic Development Committee meeting, the committee approved sending a resolution to the common council that stated Economic Development would loan that money to MMC with a slightly higher interest rate and a few other guidelines attached to it.
The interest rate for the loan to MMC from Economic Development will be 3.4% to help cover any soft costs that may come up in acquiring and dealing with the loan.
It was also stated that a member of the common council would sit on the hospital?s finance committee as a non-voting member, MMC must cover all reasonable costs of closing, economic development and the city will receive annual financial reports and MMC must make an annual appearance at a City Council and Economic Development meeting to let them know everything is running smoothly.
The Common Council then approved that resolution from Economic Development.
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