Council prepares to present request for depot

The City of Aiken will move forward with drafting an ordinance to be presented to City Council members for a $1.3 million loan request for Aiken Corporation for the Aiken Railroad Depot. Council has not yet approved the loan; the ordinance will be heard by Council for its first reading in January. In September, Aiken Corp.'s board of directors voted to request the money from the City to pay off the interest on a loan Aiken Corp. has with Security Federal Bank, as well as completion of dioramas, architectural fees, completion of the first phase of railroad cars, displays, payment and the balance of a construction contract. Though the vote was unanimous Monday, several council members expressed concerns about asking City staff members to prepare an ordinance for consideration without more information about how much money Aiken Corporation has raised for the project and how the loan would be repaid to the City. Councilman Dick Dewar suggested a work session to gain more information about the project. He said a loan request for the Depot will likely lead to a request for one from the Center for African-American History, Art and Culture. "Whatever we do for one, we will be expected to do for the other," he said.

Council member Steve Homoki agreed that more details were needed before Council moves forward. "Seems to me the work is going to progress whether we approve this $1.3 million or work on it next time around," said Homoki.

Before approving the draft of the ordinance, Council members agreed that a work session will be held next month to answer Council members' question on the proposal.

Wade Brodie, chairman of Aiken Corporation said the non-profit group has raised $2.2 million in pledges and has about $1.1 million left to raise for the Depot. He said Aiken County has agreed to commit $500,000 to the project as well. According to Brodie, the group already has a line of credit in place to move forward with the project without a loan from the City, but said borrowing from the City will reduce its interest rate to 2 percent, saving Aiken Corporation about $52,000 a year, said Brodie. He said the City will also benefit from lending the money to the organization by earning 1 percent interest above the state's investment pool rate, which will amount to about $13,000 a year for the City, said Brodie.

The City has loaned money to the organization in the past. In 2000, the City loaned Aiken Corp. a construction loan of $3.5 million to build the Washington Center for the Performing Arts. The loan was later converted to a regular loan and extended through 2011. Aiken Corp. owes $2,250,000 on the loan for the Washington Center. The City has also loaned Aiken Corp. $20,000 to paint the spec building and $250,000 for work for housing in Toole Hill, Edgewood and Crosland Park.

Aiken Corp. will pay for the costs for the construction of the Aiken Railroad Depot, however once it is complete, the City will take over ownership of the facility. It will serve as the City of Aiken's welcome center and will hold offices for the City of Aiken Parks, Recreation and Tourism Department. The Aiken Railroad Depot is being built on City property.

Councilwoman Beverly Clyburn said the Depot will likely attract more business in the area once it's complete. "Once you start development and it takes hold, it will be an incubator for other business," she said.

In other action, City Council member Don Wells was chosen as the new Mayor Pro-Tem by Council members, beginning this month, through next December.

Contact April Bailey at abailey@aikenstandard.com.