The Marshall City Council approved the second reading to execute an Intergovernmental Loan Agreement with the Marshall Municipal Utilities’ Board of Public Works during its meeting on Monday, May 3.

Mayor Julie Schwetz said it doesn’t look like the city is going to get money from a grant to help pay for the demolition project.

With the approval of the loan agreement- the money from which the city will use to pay for the demolition of the dilapidated buildings on the campus formerly known as the Marshall Habilitation Center- and later in the meeting, the council was asked to approve an ordinance to execute an agreement between the city and Remco Demolition LLC for the work to be done.

Ward 2 Councilman Kirk Arends said time is of the essence to get this agreement approved.

The council approved the agreement, which calls for the city to pay $1,730,856 or such sums as are specific in the agreement, at such time or times as required by the agreement.

The Intergovernmental Loan Agreement does not call for MMU to loan the city $1.7 million. It is much like a construction loan, where MMU will pay the bills as they come due from Remco, and the money will be drawn out at that time as part of the loan.