Texarkana, Ark., will apply to a federal loan program for funding to renovate a long-abandoned recreation center, the city's Board of Directors decided Monday.
The board passed a resolution approving an application for a Department of Housing and Urban Development Section 108 loan for more than $884,000. If the application is successful, the money will be used to restore the former Boys and Girls Club building on Legion Drive.
Section 108 is a financing mechanism that leverages a city's HUD Community Development Block Grants, a form of federal funding for cities and states. Under Section 108, a city or state my borrow up to five times its most recent annual CDBG allocation and repay the loan with future CDBG funds.
Assistant Public Works Director Tracie Lee presented the plan to the board. Debt service payments on the loan would probably be $30,000 to $50,000 a year, she said.
Environmental studies of the site in 2011 and 2012 concluded that there is "nothing stopping us from moving forward with the project," Lee said.
The building has been vacant since 2008 and needs extensive electrical and plumbing work, roof repair and a new gymnasium floor.
Ward 6 Director Terri Peavy, who sponsored the resolution, said the idea began about a year ago with an initiative to improve Arkansas-side residents' health.
"After attending a training and educational conference a year ago, I had no idea what I was getting myself into. But I'm a pretty quick learner sometimes, and we learned that there is money out there to be used as incentives for growing healthier communities.
"I'm just really excited, even though it took a year," Peavy said.
Ward 3 Director Steven Hollibush read a statement in support of after-school programs for youth and encouraged the board to pass the resolution.
Ward 2 Director Laney Harris questioned whether CDBG funding was reliable, saying the current presidential administration wants to cut the program's budget.
"Every president has put CDBG on the chopping block. It has never happened," Lee said, adding that the program is very popular nationwide.
Even in the unlikely event that the CDBG program was canceled, the city could make the loan payments using existing parks funding and/or the estimated $90,000 a year of income the renovated building will generate from hosting events including youth sports tournaments, Lee said.
Harris voted "present" on the resolution; the remainder of the vote was a unanimous yes.
In other business, the board approved spending more than $119,000 on video and audio equipment for the Police Department.
The department will purchase 10 in-car and body-worn camera bundles and two interview room video/audio recording systems. Ordering by March 22 will get the department a third interview room system free, a value of more than $5,000, so the board passed an emergency clause to authorize the purchase immediately.
Funding will come from a variety of sources other than the city's general fund, including federal grants, seized cash and assets, and income from housing U.S. Marshal Service prisoners, Police Chief Bob Harrison told the board. But for the next phase of 10 more camera upgrades, the city will have to find the money.
"We're trying to pay our own way this time. Next time, we'll have to have 10 more cameras for about $80,000, and we'll be coming to you, too," Harrison said.
The board also approved the purchase of a pickup for the Public Works Department Streets Division. The city will pay McLarty Ford more than $34,000 for a three-quarter-ton crew cab truck. The cost is included in the current city budget.
The board's next meeting is scheduled for April 1.