TEXARKANA, Ark. - The city Board of Directors approved financing totaling $1.76 million to renovate two city-owned buildings, the Animal Care and Apotion Center and the former Boys and Girls Club Building nearby.
The city will spend $875,000 on renovating the animal shelter - much of which is more than 50 years old - financed by low-interest debt the Arkansas-side Board of Directors approved in July.
Flooding, electrical outages and other disrepair at the shelter pose health risks for both animals and people.
The city will pay off the debt over five years at 2.53% interest. Finance Director TyRhonda Henderson said sales tax, property tax and franchise fee revenues are all trending upward, so she does not anticipate trouble making annual payments of about $188,000 to service the debt. It takes the place of debt service retired last year, she added.
A new 80-foot by 80-foot building will house dog kennels, a cat adoption area, and an on-site spay and neuter clinic, and the design will allow better ventilation and easier cleaning than the current facility does.
The center's main building will be renovated into a veterinary facility, with a quarantine and isolation area, a spay and neuter clinic, and a surgery recovery room.
In October, the Board approved borrowing $885,000 to renovate the former Boys and Girls Club building on Legion Drive. The building has been vacant since 2008 and needs extensive electrical and plumbing work, roof repair and a new gymnasium floor.
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 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.
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.
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.