Greenfield City Manager Ron Coffey on Thursday signed the needed documents to secure a $1 million line of credit to cover railroad rehabilitation costs while the village awaits reimbursement on grant funds already previously awarded for the project.
Coffey was accompanied at Greenfield’s Merchants National Bank by Greenfield Finance Director Carolyn Snodgrass, who also presented the bank with the first advance on the line of credit to the tune of $621,005, for bridge work, crossing repairs, and track rehab, she said.
According to Coffey, most of the grants associated with the project are on a “reimbursement basis,” and the line of credit simply ensures that the contractor gets paid in a timely manner, then when the village is reimbursed those funds, the “draws” on the line of credit will be paid.
Nearly three years ago, the Economic Development Administration (EDA) awarded Greenfield more than $2 million in grant money for the upgrade and repair of the village’s 29-mile rail spur. That money, coupled with other grants and contributions, put the funding package for the project at nearly $3.8 million.
While a myriad of issues have plagued the project from the beginning, work officially began last month with crossing repairs along the line.
Reach Angela Shepherd at 937-393-3456, ext. 1681, or on Twitter @wordyshepherd.