June 14, 2003
TO: City Council
CC: City Manager
FROM: Fred Sissine
Friends of the Library
RE: Clarifications & Follow-up to Questions
What is being requested?
The request is to renew last year’s $1,000 placeholder to initiate a Maryland DHCD
infrastructure financing loan.
What size loan is sought?
Last year's placeholder was for a loan up to $600,000. This year the library project needs a commitment for at least $400,000 to satisfy Gateway CDC's criteria to retain use of the $200,000 state Community Legacy grant that supports soft costs (project manager Colette Gingles) and hard costs (architectural plans etc.).
Under what conditions would this loan be initiated?
The placeholder shows a very important good faith commitment by the city. A second city action, namely submission of a DHCD loan application, would be required to engage a loan. Before FOL would ask the city council to take action on the loan, it would provide a refined building plan / design, report on additional funding commitments to supply the balance of project funding, and propose a schedule for project development that addresses the opportunities and constraints of all parties.
Who else supports this project?
We have support and commitments from other key parties already. This includes a $25,000 county grant (EDC/ATHA), a $200,000 state grant (Community Legacy Program), and letters of support from local schools and the county library system (attached). We also have many verbal commitments for donations from individuals and local businesses that would be followed up in a capital campaign guided by our project manager Colette Gingles.
Why is this city commitment important now?
Local funding commitment is the most important piece of funding. It provides key leverage needed to secure additional funding commitments from all other sources: individuals, corporations, foundations, state government, and federal government. This local commitment is made even stronger by the commitments already in hand from the county and state.