Chelsea to borrow $6 million for capital improvementsPublished 3:06pm Tuesday, July 23, 2013
By STEPHANIE BRUMFIELD / Staff Writer
CHELSEA – The Chelsea City Council voted to borrow $6 million from Regions Bank at a special meeting on July 22.
The money will be used to fund the completion of tennis courts, the building of a new recreational/senior center and other projects, said Chelsea City Clerk Becky Landers. The council will hold another meeting Monday, July 29 to officially approve the finance agreement, Landers said.
The resolution passed at the July 22 meeting gives Chelsea Mayor Earl Niven the power to act on the council’s behalf to set up a financial agreement with Regions Bank. The resolution says the $6 million will be financed at a 2.9 percent interest rate over an 11-year term.
Landers also said the money could be used to pay for property the city of Chelsea has already purchased. Because Chelsea has already started working on some capital improvement projects, such as the tennis courts, the money could be used for projects already in progress or projects not yet started, she said.