$420K loan no longer needed by town

SOUTHWEST HARBOR — Officials here say they won’t need a $420,000 loan from the U.S. Department of Agriculture (USDA) to remodel the town offices, so they are telling the agency it can do something else with the money.

Three years ago, in February 2009, the town received approval from the USDA for a $800,000 loan package for remodeling the municipal building. In 2010, the town used $380,000 of the money to extensively renovate the police department space on the first floor of the building.

Town officials still want to remodel the town offices on the second floor at some point, but they have decided they won’t need the federal loan.

“We’re not looking at a structural change up here (in the offices); we’re looking at more of a rehab or remodel,” town manager Don Lagrange told the board of selectmen Tuesday night. “I think it could be done for what you currently have.”

Board chairman George Jellison said that if the town finds that it does need to borrow a little money for a renovation, “hopefully it will be in a low interest rate environment.”

The board unanimously approved Mr. Lagrange’s recommendation to “decline the balance of $420,000 at the USDA.”

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Fenceviewer Staff

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