TEXARKANA, Ark. - Funding to renovate an abandoned former Boys and Girls Club building into a community and recreation center has been approved by the city's Board of Directors.
The Board voted 6-1 to accept a federally-backed loan agreement that will make $885,000 to rehabilitate the building on Legion Drive. Ward 2 Director Laney Harris voted "present" on the measure.
City Manager Kenny Haskin praised the approval as one that will benefit the community, paid for with funds the city receives from the federal government.
"It's not costing the local taxpayers a single dime," Haskin said.
The U.S. Department of Housing and Urban Development will guarantee the loan 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.
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.
Assistant Public Works Director Tracie Lee said the city will repay the loan from its CDBG allocation, spending about $63,000 a year for 20 years.
The project aims to provide recreational space, facilitate community programs and events and generate economic development through sports tourism.
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.
As he has in previous Board meetings on the project, Harris raised questions about asbestos abatement as the project progresses.
Lee and Public Works Director Tyler Richards explained that, although environmental inspections have found some asbestos-containing materials in the building, they are not friable, meaning unless they are disturbed they do not cause any risk to health.
State environmental inspectors will be involved in the process to ensure safety, and any potentially necessary asbestos abatement has already been accounted for in cost estimates, Richards said.