TEXARKANA, Ark. - The city's Board of Directors will meet Thursday and vote on accepting a contract for funding the renovation of an abandoned building into a new recreation and community center.
If the Board votes to accept a loan agreement, $885,000 will become available to rehabilitate the former Boys and Girls Club building on Legion Drive.
The U.S. Department of Housing and Urban Development will guarantee the loan. The project aims to provide recreational space, facilitate community programs and events and generate economic development through sports tourism, according to a HUD statement.
Plans for the 12,245-square-foot building include a multipurpose gym and a fitness/activity room. The facility will have a play area for younger children, a computer lab, a tutoring room and meeting areas. The building has been vacant since 2008 and needs extensive electrical and plumbing work, roof repair and a new gymnasium floor.
HUD is providing the loan guarantee assistance under its Section 108 program, which enables local governments to borrow money from private investors at reduced interest rates. State and local governments use this financing to assist with a variety of community and economic development projects, including projects that create employment opportunities.
Section 108 loans are not risk-free. However, local governments borrowing funds secured by the program must pledge a portion of their current and future federal Community Development Block Grant allocations, as well as additional project assets, to cover the loan amount as security for the repayment of the loan. The length of time for repaying these loans can be up to 20 years.
Awarded by HUD, Community Development Block Grants are a common means for cities to finance infrastructure improvements and other pricey projects.
The meeting is scheduled for 4 p.m. Thursday at City Hall, 216 Walnut St.