Salida extends Salcat financing

Casey Mills- Mail Staff Writer

Salcat Properties received an amendment to its financing and remediation agreement extending its two-year agreement to a five-year and five-month payback during the Salida City Council meeting Monday.

Terms of the agreement specify the principal Salcat member, Bobby Hartslief, will contribute to the company the approximate amount owed to the city.

Of that, $70,000 will be used to pay down the total owed to Salida and the remaining $32,000 will go into an escrow account for improvements to the building façade.

Repayment of the remainder received a three-year extension, stretching total payback to five-years and five-months.

Council members approved loaning $125,000 to Salcat in February 2007 to stabilize the former Unique Theater building which earlier was condemned.

Because of non-performance on payments, city council members found Salcat in default Oct. 6 and then delayed foreclosure procedures Oct. 20.

On another topic, council members unanimously tabled an ordinance regarding the Heart of the Rockies Regional Medical Center overall development plan. The main issue was council questions about trail plans and new development at the hospital site.

After undisclosed discussion between council members Jim McCormick and Scott Damman, they volunteered to conduct additional negotiations with hospital officials regarding the trail and moved to table the item.

An ordinance to initiate new city water meter installation fees was tabled until Nov. 17. The ordinance proposes correcting a problem with contractors improperly installing city mandated water meters.

The proposed ordinance would charge a $100 fee for city public works employees to properly install new meters. McCormick opposed the ordinance, refused to vote for it on first reading and wants more information during the second reading in two weeks.

In other business, council members:

• Approved a one-year agreement to spend no more than $3,000 for installation of four recycling bins downtown. Staff members estimated added cost to the city at $3,000 for a trailer to empty the bins and an additional 30 minutes for city garbage routes.

• Heard a presentation by Joani Matranga of the Governor's Energy Office regarding projects in Colorado and Chaffee County

• Proclaimed November as National Hospice Month

• Renewed the First Street Café liquor license.

• Approved transfer of liquor license ownership for Tenderfoot Tavern.

• Approved an emergency ordinance authorizing lease-purchase of the former hospital to lock in an interest rate

• Approved an intergovernmental agreement with South Arkansas Fire Protection District.

• Adjourned to executive session to discuss the Poncha Springs sewer dispute with the city attorney.

The next city council meeting will be at 6 p.m. Nov. 17 in council chambers at 125 E. Third St.