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City Has Backup Plan For Funding Demolition Of Former Memorial Hospital

September 27th, 2012 by WCBC Radio

In a unique approach to secure funding- Cumberland officials acted Tuesday night to give the city a backup plan to pay for demolishing the former Memorial Hospital building. The city council still plans to borrow around $3.5 million to demolish the structure- and an additional $1.5 million for other infrastructure projects — however details of how the financing will work are still somewhat up in the air. During Tuesday’s city meeting, Mayor Brian Grim introduced a plan that will essentially see the city request the money twice. The Council unanimously approved two ordinances— one to issue $5.25 million in bonds for the projects through the Maryland Local Governmental Infrastructure Financing Program, the other to issue $5.69 million in bonds for the same projects through private sale. While the plan is to move ahead with the first funding source that becomes available- there is somewhat of a gamble that could see the city on the hook to have to re-pay close to $11 million in borrowed funds. Although she voted in support of the plan, it was not without some reservation for Councilwoman Mary Beth Pirolozzi…

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