Mayor keeps dead loan alive

That move is counter to what the council voted to do in turning down the loan Aug. 3. The money was to have been used to build new city facilities, but the council declined that action citing the recession. Until the USDA receives a letter from the city with further instructions, the millions of dollars in stimulus funds will remain available for the public works project that the mayor wants to develop, the source said.

COUNCIL SURPRISED
The mayor’s action came as a surprise to Councilman Bob Dixon, who since taking office in January has been one of city hall’s strongest critics.

“If he’s not following the council’s vote and wishes, there’s going to be legal repercussions,” Dixon said. “I’m not sure what we can do, but I’m certainly going to do something.”

Councilman David Maynard, who made the motion to kill the loan, said he isn’t sure the mayor has done anything illegal by not asking the USDA to de-obligate the 40-year, low-interest loan. But he acknowledged that he doesn’t know what to do about the situation. He said he recalled that his motion specifically addressed the loan as well as the proposal contract with Keck & Wood Inc. for services related to the loan and public works project.

For more on this story, see the August 18 edition of the Barrow Journal or click here to read the full story online when you subscribe to our new e-edition.