Council considers LB840 Revolving loan requests


By Clara Osten,

clara@wayneherald. com


Possible changes to the construction of Wayne Parks & Recreation Department Maintenance building and interest rates on LB840 Revolving Loan funds highlighted Tuesday's meeting of the Wayne City Council.

The low bid for the building came from Otte Construction for $1,437,965. This is slightly higher than the engineer's estimate of $1.3 million.

Bob Sukup with Carlson West Povondra Architects, who has been working on the project, spoke to the council on possible ways to lower the cost of the project.

Park & Recreation Director Lowell Heggemyer explained to the council some of the reasoning behind several features of the new building, including an enclosed wash bay and floor heat.

Following considerable discussion, council members approved the bid and awarded the contract to Otte Construction. The architect, contractor and city will work together to see where costs can be reduced.

The project will be paid for over the course of two fiscal years.

A recommendation from the LB84) Revolving Loan Fund Review Committee by HIS Baking Co., LLC was approved. The business, owned by Chris and Jaclyn Beach, will be located at 309 Main Street (Vel's Bakery).

The Beach family currently live in Allen where they have been operating a bakery part-time since 2021. They told the council that they plan to obtain the recipes currently being used at the bakery and keep the same services, while adding Artisan baking.

The recommendation of the LB840 Revolving Loan Fund Review Committee was to have a loan in the amount of $134,949 with a 10 year repayment period at an interest rate half the of the primary lender (4.075% fixed).

The couple asked the council to consider a 20 year repayment period and noted they plan to add additional employees at the business.

Council members debated the possible options and arrived at a compromise of a 15-year repayment period at an interest rate of 2.5%.

A second request for LB840 Revolving Loan Funds came from Darin and Jessi Jensen who are purchasing Wildcat Lanes, LLC.

The couple asked for a $180,000 loan and the review committee's recommendation for the loan was to approve the request with the city being in the first lien position due to being the largest lender, a loan repayment of 10 years and an interest rate one half the rate set by the primary lender (in this case, 3.615%)

Darin spoke the council on the plans for the business and noted they couple want to make it a place where college students and seniors are welcome to attend a variety of events.

"We have lots of ideas and want to create a more inviting atmosphere for all ages," he said.

Council members again debated the interest rate for the loan and arrived at a 10-year loan repayment period at a 1% interest rate, with the city having the first lien.

In other action, Mayor Cale Giese's appointment of Andrea Henderson to the Wayne Airport Authority Board was approved.

Tate Nelson, Mike Kaup, Lucas Thompson, Jill Brodersen, Dave Hix, Bob McBride and Don Buryanek were appointed to the Board of Appeals.

A 'ceremonial check' was presented to the city by the Wayne Rotary Club for the installation of the cornhole and ladder toss games at Freedom Park. Funding for the project came to the Wayne Rotary Club through a District Grant.

A request from Susan Boust, representing the National Alliance on Mental Illness, to waive the Freedom Park Shelter House rental fee for an event on Friday, May 17 was approved. Boust explained that a number of motorcyles will be riding through Wayne that day and food will be served at the Shelter House. The public is invited to be a part of the event.

A request from Tom and Jennifer Sievers for a sidewalk waiver was approved.

The Sievers purchased the "Alumni House" at 401 Chicago Street and asked for the waiver as the sidewalk would only benefit them at the present time.

The request was approved, with the stipulation that a sidewalk would be required as the area to the east of the property gets developed.

Ordinance 2024-5 received third and final reading approval. It allows for the city to vacate a portion of Walnut Street between Hillcrest Road north to 14th Street.

Ordinance 2024-6 also received third and final reading approval. It involves transferring ownership of a waterline that runs through the Wayne State College campus. It is subject to Wayne State relocating meters at the east and west boundaries of the water line to where they are connected to the city's water line.

The Wayne City Council will next meet in regular session on Tuesday, May 21 at 5:30 p.m. in council chambers.