Dubois Council tables decision on subordinating Town’s position on Assisted Living Project loan

By June Bonasera, County10.com News
(Dubois) — It was the third action item on the Jan. 25 regularly scheduled Dubois Town Council session, and clearly it was a confusing one. The item: “Consider approving subordinating Town of Dubois position to the security agreement position of the private party. Consider approving payment of $32,464 to the Dubois Community Project.”

The item is in reference to a project intended to build an assisted living facility in Dubois.

Quizzing the Mayor and Town Council from the audience, Vic Augustine asked if the Town of Dubois would be responsible if the project were to default or if the Town would end up owning or incurring maintenance of the facility if the council votes in favor of this request.

Mayor Twila Blakeman’s response was a definitive “No.”

As background, it was explained by the mayor that The Dubois Community Project, a
501(c)3 organization, is managing the grant from the State Loan and Investment Board on behalf of Dubois Assisted Living (DAL). The project is projected to cost $4.2 million, with SLIB funds amounting to $1.5 million. In addition, there is a $2.8 million loan from a private lender.

Council members Pete Chimenti, Rick Lee and Dave Bennett responded by each stating that it was their understanding that the Town of Dubois was simply a conduit to disperse the funds to the grant and loan recipient, with the town acting as the pass through entity. The three also indicated that it was also their understanding that the Town of Dubois would not “be saddled” with the facility or repayment of any grants or loans should the project fail.

From the audience, Dubois Frontier editor Christine Smith said she had confirmed with Wyoming Business Council representatives that the town would indeed own and be responsible for the maintenance of the DAL facility should the project default under certain conditions. She said, repayment of all grants and loans would also be the town’s responsibility if the town council voted to be the second lien holder on the mortgage as proposed in the agenda item. In addition, the facility could not be sold to a private ‘for profit’ entity, should the project default, based on the conditions set by the land donor- which stipulated the land not be zoned for commercial use.

Augustine asked if changing the zoning on the DAL property to commercial was in
progress. The mayor responded that it was but was uncertain when that might take
place.

After over 15 minutes of dialog on this issue, with contradictory information presented
by mayor, council and audience, the council voted unanimously to table the decision
until a determination by the town attorney could be made on the issue, at the next town
council meeting.

Other action items approved at the meeting included:

-Approval of a Large Animal/Corral Permit for 1117 West Ramshorn.

-Approval of a $32,464 payment to the Dubois Community project.

-Approval to use $365 of FEMA flood damage monies to pay Rice Kilroy Construction for repair of a section of flood damaged walkway.

-Approval of accounts payable list dated January 20, 2012.

Also tabled until a later date was a request by the High Country Senior Center Board to consider approving water/sewer zero billing or request an additional $1,800 in funding in lieu of zero billing from the town.

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