Griffith City Council is projected to save more than half a million dollars on the Yambil Street development after electing to take a $10 million loan from the state government.
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The loan will be repaid with an interest rate of two per cent for 10 years on a semi-annual basis, with council also getting a 50 per cent refund on all interest payments made on the loan.
Council approved the loan at Tuesday's council meeting, with mayor John Dal Broi commending the Business, Cultural and Financial services department for securing a low interest rate.
"Why wouldn't you not borrow money when you can get it at that sort of interest rate?" Cr Dal Broi said.
"It's fantastic for the construction of infrastructure for our community."
The agreement comes through the state government's Low Cost Loans Initiative, which provides funds for infrastructure which will enable an increase of housing supply.
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Council documents state the loan "provides a number of positive financial aspects for council", with the loan intended to finance the development ahead of schedule.
The loan is projected to save the council $541,000 over the life of the loan compared to other methods of funding the development.
The loan approval comes as Stage Two of the Yambil Street upgrade officially started work on Wednesday, with the section of Yambil Street between Kooyoo Street and Ulong Street closed until April 30 next year.
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