Masontown
Council votes to borrow $122,500 MASONTOWN – Borough council voted Monday to borrow more than $100,000 from a Greene County bank to purchase a property that will house the new municipal building. During the meeting, which was a continuation of the Nov. 19 meeting, council members Harry Lee, Carole Daniels, Edward Gulino, Kay Rendina and Joseph Stillwagon voted to borrow $122,500 from Community Bank of Carmichaels.
The proposal states that the borough will take a 40-year loan to borrow the money at an interest rate of around 3.65 percent.
Council said Community Bank offered the lowest interest rate of any bank in the area, noting that other banks quoted interest rates around 7 percent.
In July, council entered into a sales agreement with the owner of the Gabler Drug building, located at 2 N. Main St., with intentions of purchasing the 12,000-square-foot building. Construction and renovations to the building are estimated to cost an additional $550,000.
Lee, council president, said Monday that the $122,500 loan from Community Bank will be used to purchase the Gabler Drug building and that the borough is still hoping to acquire funding from the United States Department of Agriculture’s (USDA) rural development office to help pay for construction and renovations to the building.
Lee said he misspoke at an earlier date when he said the borough was no longer seeking funding from the USDA, clarifying Monday that the borough is still involved in the application process.
Councilman Frank McLaughlin abstained from voting on the loan because his wife is employed by Community Bank, and Councilman Bob Brown was absent from Monday’s continued meeting.
Rendina made the motion to borrow the $122,500 from Community Bank, with Daniels seconding the motion.
As for other business related to the new municipal building, council approved changes proposed by Dwain Lee Architects of Blacklick, Ohio, but did not elaborate on what the changes were.
Lee abstained from voting because Dwain Lee is his son.
In addition, council members said they want the community to know they still support the German-Masontown Public Library even though the library board of directors decided not to join with the borough in plans for the proposed building.
Original plans called for the borough and library to work together on the project. Both entities were to contribute and both, along with the police station, were to be housed in the building. However, the library board of directors pulled the plug on the project, citing financial reasons and asking for the $7,500 back that the library previously put toward the project.
Council has not voted to give the money back to the library, but council members have said they plan to return the money.
Officials said the library will remain open and continue operating out of its current location at 9 S. Washington St. in Masontown.
The next council meeting is scheduled for 7 p.m. Nov. 24 in the borough building.