Debt Service Obligation
- Webster Square Fire Station 350,000
- Gardner-Kilby-Hammond 365,000
- South Worc. Industrial Park 145,000
- Inspectional Services 543,000
- Economic Development 831,000
Let me remind everyone about the 365,000 for Garder-Kilby-Hammond. The City originally took out a 5,800,000 million dollar for site acquisition, demolition and preparation of a 7.5-acre parcel in Main South, so it could be redeveloped. I assumed the City of Worcester took out this loan to kick start the project, but would get monies back from the parties benefiting from the clean-up (Main South CDC, The Boys Club and Clark). In fact, I always remember the City of Worceser being referred to as the guarantor.
Instead the City of Worcester has been depending on the Feds to make the 365,000 payment or waive it , which was the case for the first couple of years. Evidently that is no longer the case and the interest on the 5,800,000 loan is being taken out of our CDBG allocation. Never mind being the guarantor, it is being taken right out of our annual CDBG allocation.
In the end the City Manager will submit to City Council on May 10th his recommendations on how to spend the $1,866,000 balance. Not much money left for successful programs like the Chandler Street NRSA.