Troy seeks loan for CGI
Published 12:00 am Wednesday, November 25, 2009
The Troy City Council has already approved to give CGI $850,000 as part of its incentives package, but it may not all come out of the city’s pockets — at least not all at once.
The council agreed Tuesday to seek application for a Rural Economic Development Loan and Grant (RDLG) as a means of paying CGI what it owes.
The grant will be sought from the PowerSouth Energy Cooperative, which will be funded from the USDA.
“The money would be awarded to the coops and then to the city of Troy,” said Troy Mayor Jimmy Lunsford.
If awarded, the city would be given a 10-year loan for $850,000 with no interest.
“We could spread the committed money over a 10-year period,” Lunsford said. “If we can get zero interest money, why not?”
If the money is not granted, Lunsford said he isn’t sure what means the city will take to pay CGI.
“No decision’s been made yet. We would pay through a bond issue or something,” Lunsford said.
However, he said he believes Troy has a good chance of receiving funding, with the 300 new jobs CGI is expected to bring within the next three years.
Also in the meeting the council awarded a beer and wine license to the new Piggly Wiggly, opened in the old Pic-n-Sav location on U.S. Highway 231. The license was simply transferred to the new owners.
The Troy City Council also recognized the Red Ribbon Week Essay Contest Winner Jeffrey Jordan. Jordan read his essay to those present at the meeting.
Lunsford announced city employees will be off Thursday and Friday of each week that is Thanksgiving, Christmas and New Years.