The Marietta Daily Journal – City to enter negotiations to back loan

19
Nov

The Marietta Daily Journal – City to enter negotiations to back loan

MARIETTA — A rare tie vote decided by Mayor Steve Tumlin is sending the city of Marietta to the table with the Bank of North Georgia in hopes of spreading out loan payments over the next 3 ½ years.

Councilman Grif Chalfant convinced a majority of his colleagues to attempt to negotiate with the bank holding a $4.2 million loan for a city agency.

Bank of North Georgia has asked Marietta to guarantee $225,000 or 18 months of interest payments.

The City Council will now ask the bank to up that term to 42 months.

In 2006, the city gave $2.1 million to the Marietta Redevelopment Corp., a tax-exempt nonprofit formed by the City Council. The city pays the salaries of redevelopment corporation’s director.

The MRC used that seed money to secure the bank loan. That money was used to buy blighted duplexes off Power Springs Street across from the Hilton Marietta Conference Center.

About eight acres of vacant lots and properties with aging houses were purchased for $4 million.

via The Marietta Daily Journal – City to enter negotiations to back loan.

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