Griffith City Council has approved the taking out of a $3 million loan to help fund the city's Griffin Green project.
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The decision was made during council's regular meeting on Tuesday, with the term for the loan to be 10 years at an indicative interest rate of 1.6 per cent.
Repayments of the principal and interest will be made on a semi-annual basis, with the funds coming through council's water, sewer and general revenues.
Griffith mayor John Dal Broi said council's financial position allowed for a small interest rate for the repayment of the loan.
"At 1.6 per cent interest rate I think we'd be doing the community a favour and that's because of councils finances," Councillor Dal Broi said.
Council had previously announced they would be committing $3 million towards the project to fund the construction of civil infrastructure, with Argyle Housing committing $3 million to the project and the federal government's Building Better Regions Fund contributing a further $6 million for the project.
The loan means council now has a total of $45 million in borrowings across the organisation - including a $10 million loan to continue the Yambil Street redevelopment.
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Councillor Dino Zappacosta asked council if a concept plan has been drawn up for the development and council's general manager Brett Stonestreet informed council a plan was "getting close" to the final stage of preparation.
"A site plan is at an advanced state of being prepared," Mr Stonestreet said.
"When the site plan is finalised - prior to that going out to design - we will distribute that to councillors."
The first stage of the project will see 20 affordable homes built on the site of Dave Taylor Park in the Pioneer precinct of the city, with work on the road, water and sewerage connections for the homes planned to get under way in November.