By CHAD COOPER
The Grundy Town Council voted during its regular July 14 meeting to forgive the remaining balance of a long-standing loan owed by the Town of Grundy Industrial Development Authority, converting approximately $230,000 in debt into a grant following a public hearing held before the meeting.
No one spoke during the public hearing, and the council later took up the matter during its regular session, where it approved the measure by roll-call vote.
Grundy Town Manager and Town of Grundy IDA Properties Manager Dennis Ramey said the loan dates back more than a decade.
According to Ramey, the IDA began experiencing cash-flow difficulties in 2014 while operating and maintaining the Grundy Town Center and other downtown properties. Between 2014 and 2018, the town advanced a series of temporary loans, generally ranging from $20,000 to $30,000 at a time, to help the authority meet its financial obligations.
Those advances eventually totaled approximately $580,000. Ramey said the IDA has since repaid about $350,000, leaving an outstanding balance of roughly $230,000.
“This loan’s been out there for a long time,” Ramey told council members. “It just cleans up our books and the IDA’s books. It makes it easier for our auditors, and it would help the IDA, especially with some potentially tough financial times ahead.”
Ramey noted the council has previously reduced the debt by converting portions of the loan into grants. About $150,000 was forgiven in 2019, while the IDA also made annual payments of approximately $55,000 in 2021, 2023 and 2024.
He said the IDA’s financial challenges stem largely from its efforts to keep downtown businesses operating by maintaining affordable lease rates despite rising operating costs.
“We’ve tried our best to keep the rents competitive,” Ramey said. “When leases came up for renewal that normally called for increases, we chose to keep the rates the same to help businesses stay here.”
Ramey said several storefronts in the Town Center, including the former GameStop, Subway and Unique Nails locations, remain vacant, although prospective tenants have expressed interest. He added that nearly all of the available space in the Grundy Plaza has been leased, with only a few offices remaining because they lack storefront visibility.
He emphasized that the IDA continues to make debt payments associated with the Town Center and downtown redevelopment.
“It’s not like we’re stashing this money away somewhere,” Ramey said. “Those loans are still being paid every month.”
Ramey explained that construction costs for the downtown redevelopment escalated significantly beyond the original project estimates, requiring the IDA to borrow additional funds to complete projects such as the Town Center parking structure and infrastructure supporting the Walmart development.
He also addressed speculation that the Town Center could be sold, saying the IDA has no plans to do so.
“We could sell it tomorrow,” Ramey said. “But what happens if another owner decides Walmart isn’t making enough money and tells them to leave? Walmart is a big part of keeping this town going, and we’re trying to keep the Town Center alive.”
Ramey added that the IDA’s debt obligations are disclosed in its annual audited financial statements and are available for public review.
“We’re transparent,” he said. “People don’t always understand that we still owe money on the Walmart development. It’s in our audit every year.”
Following discussion, the council approved the motion by roll-call vote, officially forgiving the remaining loan balance and converting the debt into a grant, a move Ramey said will improve the IDA’s financial position while simplifying the accounting records for both the town and the authority.
