The News Courier in Athens, Alabama

Local News

August 4, 2013

Library seeks $1M line of credit

— Library officials are seeking a $1 million line of credit to temporarily cover construction expenses for the second portion of a two-phase new library being built in the former Kroger’s building on Jefferson Street.

Local banks are being asked to submit an RFP, or request for proposal, for a line of credit with interest paid monthly and the Southard Trust as collateral. The RFP, which is due in writing by 5 p.m. Friday, Sept. 13, should be turned into Library Director Paula Laurita at the current library at 405 E. South Street.

The trust, valued at slightly more than $2.7 million as of July 16, is the major source of funding for the library’s annual operating budget, which received $133,262 from the trust, $115,000 from the city, $80,000 from the county for fiscal 2013-14. The endowment is contributing $1 million toward the new library.

“(The RFP) … will be used to provide temporary funding to cover construction expenses during our fundraising period,” said Susan Ming, vice president of the foundation board. “Repayment will come from pledges that have been secured, and will be collected over a 3-year period. This is a method that is familiar to many people, as it is typically used by churches for building projects that are being paid for with pledges to allow construction to move forward during the pledge payment period.” 

Phase II construction could begin in early December, while Phase I, which began June 5, is projected by construction officials to end by Nov. 30.

Fundraising consultant Debbie Joyner said during the July 18 foundation board meeting that the Library Foundation has about $250,000 in pledges scheduled for payment during the next three years, along with an estate gift worth $500,000.

Joyner said Friday a local bank official told her the longer the Kroger building sat unused and empty, the more likely it would deteriorate. One of the requirements for the $1 million Dekko Foundation matching grant secured by the foundation last year is for completed construction by spring 2014. The new library is projected for completion by late May 2014.

Mayor Ronnie Marks said in July that the RFP is necessary to ensure construction invoices are paid as the foundation collects additional funding. He said Phase II could cost about $2.3 million or $2.4 million.

“We have about $1.6 million in cash you can count in, but we’re not going forward with Phase II unless we have some documentation or proof that the money is going to be there,” Marks said. “I want to emphasize I have all the confidence in the world that it is going to happen … we can do one of two things — we can build out the library, or sit and wait until pledges come in. Fundraising is tough but we have a commitment to the community to go forward with the project.”

1
Text Only
Local News
Photos


Poll

Which foreign crisis is the biggest threat to the security of the United States?

Russia-Ukraine
Israel-Palestine
Iraq
None of the above
     View Results
Facebook
AP Video
Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow
Twitter Updates
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Business Marquee