Animal Shelter group seeks funds from HCDA
The Humboldt Community Animal Shelter Board met last week to discuss a proposed shelter in the Northwest Industrial Park and ways to financial the new building in lieu of donated funds. The non-profit organization has a little over $21,000 in funds raised. A new animal shelter for the city/county is expected to cost around $235,000.
By KENT THOMPSON
Fresh on the heels of financial commitments amounting to at least $15,000 per year in designated contributions from Humboldt County and the city of Humboldt last week, the Humboldt Community Animal Shelter (HCAS) Board met Aug. 6 and took proactive measures to secure loan financing for the construction of a building. The building cost is expected to be around $235,000, it was reported.
HCAS Board member Travis Goedken told the group that the most economical alternative may be to look at a Humboldt County Development Association (HCDA) revolving loan fund agreement for $235,000 at an interest rate of 2 percent per year.
The cost would be $1,189 per month. However, there would be a balloon payment at the end of 10 years, at which time $129,201 would still be owed.
“There are several benefits in utilizing the HCDA revolving loan fund. One, it has more flexibility than some other payment methods. Two, as a fledging start-up organization, the HCAS has no credit history. The third advantage is that it would keep monthly loan payments below $1,200 a month. Hopefully at the end of 20 years there would be funds to help put toward the debt. The disadvantage is that after 10 years, you would need an entity to accept that $129,000 balloon payment to pay off the loan,” Goedken said.
Other options the group considered were a U.S. Department of Agriculture rural facilities loan, economic development loans from either Midland Power Cooperative or Corn Belt Power Cooperative, or a lease/purchase agreement with developer and land owner Jim Gronbach. The Board unanimously agreed to pursue a request for a loan through the HCDA revolving loan fund. Read more about the group in this week's Humboldt Independent. Deliverable to you by clicking on the link at the top of the page.
