Council considers amending revolving loan fund to allow EDC contract and playground match; board member raises concerns about scope

The council considered an ordinance to amend the city’s revolving loan fund rules so the fund can be used for the Economic Development Corporation contract, as a local match for parks and beautification projects and as a corporate match for playground projects such as the proposed inclusive playground at Federer's Alley.

Sponsor remarks said the amendment would let the city use revolving‑loan balances for the annual EDCMC contract, local matches on park and recreational capital projects (including the Federer's Alley destination playground) and matching funds from corporate donors for similar programs. Scott Mallon (a member of the city’s revolving loan board) told the council he had supported devoting funds specifically to Federer's Alley matching and that the board had a narrower intent; he said the board redefined its mission and that he was concerned about the broader expansion.

Council discussion included standard questions about loan‑fund risk and collection. Councilman Brian Dabney asked how the city recovers funds if a borrower defaults and where the city stands in priority for repayment; he said he has been skeptical of the revolving loan fund because the city is not a bank and wants clarity about enforcement and recovery. The ordinance was introduced on first reading and will return for a second reading.

Why it matters: The revolving loan fund is one of the city’s mechanisms for supporting local businesses and capital projects. Changing its permitted uses affects how the city leverages limited public funds for economic development and park projects.

Details and next steps: The ordinance was held over for a second reading so council and the loan board can clarify mission, repayment priority and limits on uses.