Yorkville project not eligible for development loan
By Steve Lord email@example.com September 11, 2012 5:28PM
Updated: September 13, 2012 9:40PM
YORKVILLE — A plan for the city to borrow money from the county to move power lines was squashed before it could get off the ground.
City officials said this week the state has notified them that a proposed $250,000 project to relocate utilities downtown is not eligible to be paid for out of an economic development loan.
Yorkville had asked Kendall County for a loan from its economic development revolving loan fund to relocate and buy utility lines behind businesses on the west side of Route 47 downtown.
The loan would have been $250,000 at a 3.1 percent interest rate, for eight years.
The city would pay back the loan with tax increment finance district money from the downtown TIF.
In a memo delivered this week to aldermen, Yorkville City Administrator Bart Olson mentioned the state’s decision that the project was not eligible. But he added that city officials will look for other ways they can utilize the county’s revolving loan fund for economic development.
“We will be discussing other revolving loan fund projects with interested developers and businesses and the county, and will report back to the Economic Development Committee or City Council when we have an acceptable project,” Olson wrote.