By JAY COMPTON
GM / Editor
The City of Pineville took another step forward with the Courthouse Square utility replacement project during a special called meeting on Friday.
A resolution was unanimously approved authorizing Mayor Scott Madon to sign the necessary documents for a $2.6 million loan from the Kentucky Infrastructure Authority that will cover all remaining costs for project. The project includes all new lines to separating the waste water and storm water drains on Virginia Avenue and around the Square as well as new wider sidewalks, widening the streets around the square to allow for more parking and burying utility lines around the square.
“We’ve been approved for $3.7 million but we’re just going to have to take $2.6 if everything goes as we plan,” Main Street Pineville Director Jacob Roan said. “It sounds like we’ll get the CDBG (Community Development Block Grant) that we’ve applied for and we’re still waiting to hear back from ARC. But all of the applications are in Frankfort and this is the last one to send. “
Madon added that the city could have up to 50-percent of the loan forgiven.
“We will for sure get $800,000 to $900,000 forgiven. But we’re asking for $1.3 million,” Pineville Utility Commission superintendent Robert Roan told the council.
“That will weigh heavily on how we move our project forward,” Madon said. “Even though we’re applying for it, it is contingent on us getting that forgiven because we can’t handle all of it.”
The council also met in executive session to discuss developments at the hospital.
The city voted last Tuesday to stop funding the operations of the hospital and it was announced last Wednesday at 7 p.m. that the hospital would cease offering services.
However, the hospital was back offering emergency room services at 3 p.m. on Thursday.
“We have a potential investor that caused us to resume offering services at the hospital,” Madon said before Friday’s executive session.
“There are a lot of moving parts and so many people involved. You’ve got the bankruptcy court and two lending institutions involved, you’ve got the city involved, you’ve got the Office of Inspector General involved and the federal department of Medicaid Services, just so many moving complicated parts. All I can tell you is that we are absolutely doing everything we can. We have stuck our neck out way too far, but we’re going to find out today whether it’s on or off.”
No action was taken by the council on the matter Friday.
It was announced Tuesday evening that First State Bank of the Southeast had emerged as the new top bidder for the hospital and all of its assets.