City council OKs $15.26M loan agreement with state
The Sanibel City Council recently approved a loan agreement with the state and terminated an open line of credit, as well as discussed Lee County’s draft plan for federal disaster recovery funding.
At a special meeting on Aug. 22, the council voted unanimously 5-0 to approve a resolution for the execution of the Local Government Emergency Bridge Loan agreement between the city and Florida Department of Commerce for a principal amount of $15,260,511 to finance government operations.
The loan program was created to assist governments in funding the continuation of basic government operations post-hurricane while waiting for funds to be available from other federal and state resources.
Prior to the vote, Deputy City Manager and Finance Director Steve Chaipel explained that the city originally applied for the full $15.26 million, but only received approval for a portion — $13.1 million. Staff followed up by requesting approval from the state for the full original amount and received it.
According to the terms, the loan is 0% interest for two years, with a six-month extension option.
Chaipel noted that compared to bank lines of credit, the loan’s terms are “more generous.”
Before approving the loan agreement, the council had to cancel a line of credit that it had previously opened with Fifth Third Bank in the amount of $20 million in anticipation of storm-related costs.
The council voted 5-0 on a resolution to terminate the taxable line of credit with the bank.
Prior to the vote, Chaipel reported that the full $20 million had not been touched.
“We have not drawn down on that line of credit to date,” he said.
Also at the meeting, City Manager Dana Souza presented a draft summary of the city’s comments prepared by staff on the county’s Draft Action Plan for $1.1 billion in Community Development Block Grant — Disaster Recovery funds from the U.S. Department of Housing and Urban Development.
One recommendation for the county was to add funding for “Economic Revitalization” in the action plan in order to: provide funding to the SanCap Chamber to ensure its viability and to assist businesses reliant on tourists and visitors; provide direct financial assistance to businesses that employ low-to-moderate income (LMI) persons with grants in aid for building renovations, insurance premiums, employee recruitment, toll passes, storefront improvements and such; fund city infrastructure needs necessary to support businesses and their employees traveling to work from other parts of the county; and provide grants to historic, cultural and educational based organizations on the island.
For the “Housing” allocation on the action plan, city staff recommended: priority funding should go to communities that lost affordable housing units to the hurricane; priority funding for Community Housing and Resources to redevelop lost and damaged units; priority funding to CHR to acquire land and develop new affordable housing on the island; priority funding to develop near-island affordable housing; and prioritize funding for the construction of LMI intern housing to support non-profits.
As for “Public Facilities & Infrastructure,” city staff recommended: plan for barge landing facilities on Sanibel and the county’s mainland to plan for any future events that may make the Sanibel Causeway inaccessible; and plan for high-speed broadband fiber network on Sanibel for resiliency and reliability.
On “Public Services,” city staff recommended: partner with F.I.S.H. of Sanibel-Captiva to deliver services on Sanibel; assist F.I.S.H. with renovating and expanding its building to better service LMI clients; and provide individual assistance to qualified residents, to include home renovations, home elevations and contractor management.
During the following discussion among the dais and with Souza, the council voiced support for the staff recommendations, including a consensus on the need for “Economic Revitalization” funds.
Souza noted that the city and county have been working together and will continue to.
“But we will push them on what our needs are,” he said.
To reach TIFFANY REPECKI / trepecki@breezenewspapers.com, please email