Loans
By PJ Martin
The Herald-News
The Edmonton Metcalfe Industrial Development Authority (IDEA) held its September meeting on Monday, September 19th with all in attendance except Mike Shive and with City Clerk Dawn Devore filling in for Secretary/Treasurer Alley Bragg.
A conference call involving BRADD, Chairman Wes Jolly, Judge/Executive Harold Stilts, Chad Pennington, and a Scott, Murphy & Daniel representative was held that morning regarding the status of the fit-up of the building at the South Industrial Park.
“Everything is in on schedule in terms of where they thought they would be,” stated Jolly noting the items remaining have ship dates.
Judge Stilts pointed out that the fire pump is not scheduled to be installed until November and Pennington Stave is planning to begin moving equipment in on November 1st which may pose an issue with insurance liability.
Mark Linkous voiced concern, “If Chad puts anything in that building before it’s complete it voids the builder’s risk. That’s just a standard thing.”
It was decided to table the discussion until the October meeting to give time to check with both insurance companies on the liability risks.
Cost overruns were also discussed via the conference call. Scott, Murphy, & Daniel requested a change order to cover the cost of cement pads for several pieces of outside equipment which were not included in the original bid/contract. No specific cost is known at this time, but is estimated to be between $1 – $200,000.
The previous cost overrun total was estimated to be $429,900, but this added cost may bring that to an estimated maximum of $629,900.
To move things forward, Jolly requested the board authorize the change order of up to $200,000 to allow Scott, Murphy, & Daniel to complete the cement pads. The board approved the change order at up to $200,000.
Jolly noted that the release of the TVA lien is time sensitive concerning the new loan for the overruns costs.
Judge Stilts then stated that he had been advised that the 3rd year of RDAPP monies should be added either this week or next and at that point, the board could request the funds in their entirety ($462,820) to pay the TVA and ESB loans. Once those loans are paid, the new loan for the overrun amount can be set up.
“Is there going to be a cost of running electrical to these pads, beyond the concrete pads for the units? Cause that wasn’t figured in the original contract to run electrical power out to those units,” noted Judge Stilts. He also questioned why they have not poured the missing sections of the concrete floor. He suggested those be poured when the pads are being poured to save time and labor.
Unsure of answers, those questions will be addressed to Scott, Murphy, & Daniel for clarity.
The board approved amending the Resolution for Chairman Jolly to borrow from ESB up to $600,000 (previously $400,000) for the overrun costs.
The original lease/buy agreement with Pennington Stave & Cooperage will also need to be rewritten due to the additional cost of the overrun amount. All parties were in agreement on this.
The next meeting is scheduled for October 17th at 2 p.m. at City Hall.
