The Girard City Council held a hastily called special meeting at 5:30 p.m. Wednesday to discuss a letter of conditions regarding a loan being sought through U.S. Department of Agriculture Rural Development.

The Girard City Council held a hastily called special meeting at 5:30 p.m. Wednesday to discuss a letter of conditions regarding a loan being sought through U.S. Department of Agriculture Rural Development.

“Basically, we’ve agreed to borrow a bunch of money,” said Girard mayor Maurice Harley.

The loan, not to exceed $4,523,000, has not yet been approved. If the funds are obtained, they will be used to finance improvements to the city’s sewer system.

Charles Health, USDA Rural Development area specialist, explained that it would save the city a considerable amount of money if the paperwork could be signed and submitted and the loan could be approved by Dec. 31.
“The current interest rate is 3 percent,” Heath said.

“After the first of the year, the interest rate will jump to 3 3/8 percent.”

He said that the council needed to adopt a letter of intent to meet the conditions required for the loan.

“It has to be obligated by Dec. 27,” Heath said.

Richard Loffswold Jr., Girard city attorney, said he had examined the conditions spelled out for the loan application.

“There’s nothing in here that causes me any concern,” Loffswold said.

There was a question regarding the requirement for a resident inspector to be present during project construction, and Gary Emry, city administrator, asked if the city codes enforcement officer would be acceptable as the resident inspector.

Heath said he thought it was likely that the officer would be acceptable, but would check to be sure.

A quorum of council members, consisting of Dan Smith, Susan Thom and Richard Cussimanio, voted to sign the necessary forms to proceed with the loan request.