2015-09-06 / News

Misteguay Creek Drainage District update

By Jeanne Marcello
Staff Reporter

The Misteguay Creek Inter County Drainage Board is presently on standby. Both Genesee County and Saginaw County have already adopted the full faith and credit resolutions needed for the drainage district to obtain a loan from CFC Capital for up to $995,000 at 1.49 percent for 18 months. The Shiawassee County Board of Commissioners is yet to act on the full faith and credit resolution. As a result, the loan has not yet been issued.

The loan is needed to pay off an existing $800,000 note, plus outstanding bills for engineering, legal fees and so forth. These expenses had been accrued over the past four years as the drainage board sought to address drainage problems focused primarily in Saginaw County. Since parts of Shiawassee and Genesee counties contribute to the drain, they are expected to pay their respective shares of the project.

Michigan Department of Agriculture and Rural Development (MDARD) Deputy Director Michael Gregg told the Tri-County Citizen that the Misteguay Creek Drainage Board meeting scheduled for Aug. 23 had been cancelled. Gregg decided to postpone the August Misteguay board meeting after learning that the Shiawassee County Board of Commissioners had tabled their decision/discussion of the Misteguay full faith and credit resolution until its Sept. 17 meeting.

The full faith and credit resolution is a promise to pay back the loan. CFC Capital offered the loan with the contingency that all three counties adopt the resolutions.

Gregg said, “We anticipated that all three counties would have completed the full faith credit agreements by then (Aug. 23). Without having that step taken, we felt it was best to cancel.”

The loan is critical to pay off the existing $800,000 note. Payment on that note was due Aug. 1, but was extended until Nov.1. The Misteguay Creek Drainage Board has been informed by its attorneys that failure to repay the $800,000 note would make it difficult and very costly for the district to gain financing for future projects.

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