City Council plans virtual Monday night meeting
The Great Bend City Council will meet at 6:30 p.m. Monday, but the meeting will take place virtually because of COVID-19 meeting guidelines. Since public access restrictions have been placed on public buildings, the following procedures will be followed in conducting public meetings.
One can view the meetings on Access TV via Cox Cable Channel 20 or live online at www.facebook.com/gbcitycouncil/. To participate in the meetings, one can take part via web at https://zoom.us/j/7207072528 (Meeting ID: 720 707 2528) or by phone by dialing 877-853-5257 toll-free Or 888-475-4499 toll-free (Meeting ID: 720 707 2528) and enter participant code if you are using both the web and the phone.
If you are using your phone and do not have a mute button, press *6 so that others participating cannot hear your background noise; to unmute hit *6 again. If one is using the web base, the mute button is on the bottom left corner.
The meeting will be recorded.
The agenda includes a real estate exchange with CJS Properties, a Bat Cats Al Burns facility use agreement, a local business preference for procurements, resurfacing water park slides and several Community Development Block Grant applications.
Tapping its Community Development Block Grant revolving loan funds to help local businesses through hardships brought on by the COVID-19 pandemic, the Great Bend City Council Monday night will consider six grant applications when it meets virtually for the second time. If all are approved, it would bring to seven the number of grants awarded, totalling $179,000.
It was at the April 6 meeting that the council authorized utilizing the two city-controlled CDBG economic development revolving loan funds through the Kansas Department of Commerce’s CDBG program. The balance of both, as of the end of last year, was a combined $179,200.
“That would max out our loan fund,” said Great Bend Economic Development Inc. President Jessica Milsap. Of course, it is up to the council what, if any, of the loans get the OK.
Making the loans available now was done in response to the COVID-19 crisis. The Commerce Department allowed for immediate use of these funds, backing off on some of the usual requirements.
Following the April 6 action, the council OKed the first such loan to DAT Fitness, owned by David Tudor who will receive $4,000 to help with routine business expenses.
As for those on the agenda Monday, they included: Kleen Smart requesting $10,000; Identifications Company, $10,000; Stephen McAnulla Photography, $25,000; Wells Sit and Sleep, $26,000; Re-Perks, $15,000; and Magna Dry, $89,000.
All seven are three-year loans at 0.5% interest and they have the option of making interest-only payments for 12 months. They meet the requirements for job retention and the low- to moderate-income restrictions. There is no penalty for early repayment, Milsap said.
They are all for working capital, defined as salaries/wages, inventory purchase, utilities, rent, insurance payments, etc.
The KDC is allowing immediate use of local CDBG Revolving Loan Fund money to help support the working capital needs of existing small businesses, City Administrator Kendal Francis said. “Commerce has relaxed and streamlined the applications for this money. They very badly want to see this used by small businesses.”
But, funding must be based on job retention of which 51% must be low to moderate income, and the business must provide a letter stating the company is either shut down or will be shut down due to COVID 19, he said.
Applicants are not required to provide business financial reports, matching funds or collateral, Francis said. These funds are only available to businesses or nonprofits within the Great Bend city limits. The Department of Commerce allowed the local governing entities to decide the terms of funds: Grant or loan; interest rate (must be 4% or less); term (maximum of three years); and number of interest-only payments. Great Bend went with the 0.5% interest and a maximum three-year term and not more than 12 months of interest-only payments.
Great Plains Development based in Dodge City administers these funds for the city. The grants must go to existing businesses and are normally earmarked for economic development incentives and gap funding.
All funding applications must receive final approval by the governing body.
The only way the city’s revolving loan funds get replenished is through the repayment of the loans, Milsap said, noting there is no other funding stream. The city does have at least one outstanding revolving loan.
The KDC identified $6.3 million in CDBG funds that currently reside with 36 Kansas communities, who use them for revolving loan programs for small businesses. Under normal circumstances, the process takes more than 30 days before a loan can be issued.
The Department of Commerce now will provide certifications within 24 hours, and the public notice period has been shortened from 30 days to 24 hours.
The Small Cities Community Development Block Grant Program allows the Department of Commerce to distribute federal funds to Kansas cities and counties.
