MOUNT VERNON — Mount Vernon City Council approved a grant on Monday that will help cover operating costs at Cooper Progress Park (CCP), but it changed the way it will distribute the money.
The original legislation called for a one-time distribution of $150,000 from the city’s reserve balance fund. Council established the reserve fund, frequently called the rainy day fund, in 2017. The fund has a $2.229 million balance.
Councilman Mel Severns suggested amending the legislation to read “up to $150,000 in monthly increments of $50,00 in March, April, and May if needed.”
The amendment includes a stipulation that requires the Knox County Land Bank to show financial need before receiving a disbursement for the following month.
Severns said some constituents are concerned about taking $150,000 out of the fund. He noted that if the land bank sold enough buildings, the last $50,000 payment might not be needed.
Building sales have been held up waiting on deeds from Schlumberger, the parent company of Siemens Energy which formerly occupied the site. Without a deed, the land bank, through CCP’s oversight group, Cooper Progress Park Development Company, can only lease properties, not sell.
Jeff Gottke, president of the land bank and the Area Development Foundation, told council he signed deeds on Monday and returned them to Schlumberger for processing.
After discussing and finessing language and the process of showing financial need, council members approved the amendment. The first payment will be in February. They then suspended the third reading and adopted the resolution as amended.
The annual allocation to the reserve balance fund is 5% of expenses for the previous year. City Auditor Terry Scott noted that in addition to the usual allocation, council can opt to allocate an additional $150,000 in 2023 to cover this year’s disbursement.
