Council adjusts budget for virus grants

Loans and grants related to restoration of historic downtown bank discussed

TEXARKANA, Texas — The City Council on Tuesday voted to amend the budget to reflect recently received grants related to the COVID-19 pandemic.

The Council voted by consent to approve a trio of ordinances necessary to account for grants totaling more than $390,000, which are expected to be spent this fiscal year. The Council approved the proposed uses for the funds during its April 27 meeting.

The city’s Community Development Block Grant plan will have an extra $195,000 available. Another $23,921 will be used to cover administrative costs. Community Development Block Grants are a common way for local governments to fund services and infrastructure improvements, and the grants will go to various city departments and nonprofits.

The city received the funds from the Department of Housing and Urban Development as part of the Coronavirus Aid, Relief, and Economic Security, or CARES, Act passed to provide a wide range of pandemic-related financial relief.

The Department of Justice also awarded the city a grant of more than $83,000, which will go into its own fund in the budget.

The Council voted unanimously to form a budget advisory committee comprising appointees from each Council member and the mayor. It will be the third consecutive year the committee has advised the Council on budget matters.

Mayor Bob Bruggeman said he would re-appoint former Ward 5 Council Member Van Alexander to the budget advisory committee. Council members have until June 8 to submit their appointees to the city secretary.

The Council met in executive session to discuss the re-appointment of Sherry Jackson as municipal court judge. Upon reconvening, the Council voted unanimously for a two-year re-appointment with a 3% raise for Jackson, which will increase her annual salary to just less than $84,000.

The Council heard a first briefing on awarding $510,000 in loans and grants to Texarkana Renewal Properties.

The local developers plan to rehabilitate the former Texarkana National Bank building at West Broad Street and North State Line Avenue, as well as the building’s parking garage a block away. A vote on the measure is expected June 8.

The funding package would include an EPA Brownfields Cleanup loan of $400,000. City Facade Program loans would provide another $50,000 for the building and $50,000 for the garage.

The EPA loan would have a 12-year term, and the Facade Program loan a 10-year term. Both would feature no interest the first year, interest-only payments in years two and three, and principle and interest due in subsequent years.

The interest rates would be set at the 10-year treasury rate plus 1%.

City Facade grants of $5,000 for the building and $5,000 for the garage also would be awarded.

“This is very exciting,” Bruggeman said.

Financing for the project may change as it develops, and it will proceed in phases, the first being removing the modern facade from the century-plus-old building so that it can qualify for historic tax credits, said David Orr, city director of community planning and development.

The Council’s next meeting is scheduled for June 8.