ACTION REQUESTED:
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Communication from the City Manager and Finance Director/Comptroller with a Request to APPROVE an INTERGOVERNMENTAL AGREEMENT with the PEORIA CIVIC CENTER AUTHORITY for a Capital Bridge Loan.
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BACKGROUND: The Peoria Civic Center Authority (PCCA) was the recipient of a $25 million capital grant from the Illinois Department of Commerce and Economic Opportunity (DCEO). This much needed capital grant will allow the PCCA to complete numerous capital projects ranging from cooling towers that provide air conditioning for City Hall, parking lots improvements, and roof improvements. The grant is on a reimbursable basis which requires the PCCA to complete the capital improvements and request the funding from DCEO.
PCCA has been forward funding many of these capital projects and has put a crunch on their cash flows. The Intergovernmental Agreement would create a noninterest bearing bridge loan process under which the City will provide cash flow for these capital projects anytime cash reserves for the PCCA drop below $1 million. Under the agreement, PCCA would request reimbursement for each bridge loan request made to the City and reimburse the City as they receive those reimbursements from DCEO.
FINANCIAL IMPACT: The approval of the agreement will provide necessary cash flow for PCCA to complete the capital projects. The City has adequate cash reserves to be able to make these temporary bridge loan payments.
NEIGHBORHOOD CONCERNS: None.
IMPACT IF APPROVED: The PCCA will be able to make the necessary capital improvements to their facility.
IMPACT IF DENIED: The PCCA will not have the necessary cash reserves to meet the requirements of the grant and will be unable to meet the requirements of the grant
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Finance