Just a few days after the Marshall Municipal Utilities’ Board of Public Works approved an Intergovernmental Loan Agreement with the city of Marshall for the city to borrow funds from MMU to pay for the demolition of buildings on the property formerly known as the Marshall Habilitiation Center, the Marshall City Council considered approval of the same document during its meeting on Monday, April 19.

The first reading of the agreement was approved by the council on Monday. It will need to be approved a second time by the council before it goes into effect.

According to the agreement, the city promises to pay MMU up to $1.7 million plus 10 percent as a contingency or so much as may be advanced.

It is like a construction loan, so MMU will not be lending the city a lump sum of $1.7 million plus the 10 percent contingency. Instead, MMU will pay the bills for the demolition as they come due, drawing out of the loan amount.

Interest shall be charged on the unpaid principal until the full amount has been paid.

Payments from the city shall be made the 15th of each month beginning in October 2021. The final payment of principal and interest owed shall be due September 15, 2028.

The city has the right to make payments of principal at any time before they are due without any prepayment charge.

The agreement may only be modified or amended by an agreement executed by both parties.

The next meeting of the council is scheduled for 6 p.m. on Monday, May 3.