Lawrence city commissioners at their Tuesday evening meeting again will consider making a $725,000 low-interest loan to the Lawrence Community Shelter.
Commissioners last month expressed general support for providing the loan to the homeless shelter, which will use the money to put a new roof on its building in eastern Lawrence and to replace a construction loan with a local bank that is coming due at the end of the year.
Last month commissioners were split on how the loan should be secured. Shelter officials have expressed a preference that the city not place a mortgage on their property, which is at 3701 Franklin Park Circle. The lack of a mortgage would make it easier for the shelter to take out a loan against the property in the future, but would create questions about what recourse the city would have if the shelter defaulted on the loan.
City staff members, however, report that shelter officials are willing to accept a mortgage on the property after some city commissioners raised the issue. Commissioners at their weekly meeting will be asked to decide the mortgage issue. Commissioners also will be briefed on other terms of the loan. They include:
• The first $225,000 of the loan would be interest free, provided it is paid back by Oct. 31, 2014.
• The remaining $500,000 would carry a 2 percent interest rate and would be paid back over 180 months.
• The loan is structured so that the shelter would be responsible for making a $287,191 balloon payment in January 2029.
Commissioners meet at 6:35 p.m. on Tuesday at City Hall.