Brady opens negotiations with FHA for lake loan

August 9-12, 1960 The City of Brady began negotiations Tuesday afternoon for a loan from the Farmers Home Administration to finance the City’s part of the cost of building Brady Lake. Frank Pollard was here from Washington, D.C., to tell the City how to go about applying for the loan. He is director of the FHA’s emergency loan division. Also present for the conference, held Tuesday afternoon at the Country Club, were officials from the Soil Conservation Service, the City’s financial advisors and engineers, and members of the Water Board appointed by the City Council to work on the lake project. Congress has authorized the Brady loan and has appropriated the necessary funds, but the City still must apply to FHA and establish the City’s eligibility for the loan. By making a loan’something over $1 million’from the FHA, the City can save considerably on interest charges, which might be the difference in the City’s ability to finance the project. Interest on an FHA loan would cost 2.623 percent, while a loan from private sources would cost 4.5 to 5 percent. Pollard said the City first will have to file a brief, outlining the project in detail, size of the lake, method of financing, sale of water, operation of the water system, etc. “You must make a case for Brady,” Pollard said frankly, “explaining why you need a government loan and why you can’t get the money from private sources.” Pollard said the FHA should be able to give the City a yes-or-no answer within 10 days or two weeks after receipt of the brief. But before the loan is granted, however, the FHA would need a great many other documents. “We should be able to decide on the loan after you submit your brief. If we knew we couldn’t grant the loan, we wouldn’t require you to go ahead and get up all these other documents. But give us all the information you have.” Pollard asked about the attitude of the town toward the lake project. Is it good’ Is there opposition’ “That’s hard to gauge,” he was told. ‘We know there is some opposition.’ Trying to get a picture of the lake situation, Pollard asked: ‘What about the water rates’ Could they be raised if necessary’ Would that bring more opposition’ Are your power facilities adequate for industry’ Have you had industrial prospects who didn’t come here because of lack of water’ City officials told him that two new engines have just been installed to increase the power plant capacity and that there is a good chance for expansion of the wool scouring plant’by addition of other wool processing facilities’if the City can guarantee a surface water supply. Pollard asked about the supply of labor, about the City’s present water wells, and whether the City could finance the project from private sources. C.M. Smith of Abilene, from the First Southwest Company, the City’s finance advisors, said: ‘I think we can make the general statement that Brady could not finance the bonds at any reasonable rate.’ Pointing out that the bonds, if sold to private sources, would have to carry 4.5 to 5 percent interest, he said the interest charges each year might be more than the City could pay off. Among the documents that Pollard said the FHA would need eventually from the Ctiy were: Copy of the latest City audit; copy of present bond ordinances; rate ordinances, proposed bond and rate ordinances; engineers’ report; copy of the SCS watershed work plan; projected income form the water works system; results of the bond election; evidence of the City’s water permit; abstracts of acquisition of land for the lake and easements for flood water; attorney general’s approval of the bonds; information on when money is needed for construction; rules and regulations of the City’s water department. * * * Man held; arson charged in fire A Brady man, J.B. McNelly, was placed in the McCulloch County Jail Tuesday after a charge of arson was filed against him. McNelly is charged with setting fire to the frame house belonging to his wife at 1308 Hackberry. He allegedly set fire to the house about noon last Sunday after his wife locked him out. The complaint was filed by fire Marshal Howard Salter, and bond was set by justice of the Peace Joe Myrick at $1,000. Myrick said that, to the best of his knowledge, this is the first case of arson in McCulloch County since 1947 or 1948. Salter reported little damage to the frame house, other than blistered walls and smoke damage. * * * Fife News Farmers here are going ahead with plowing to be ready to sow grain when fall rains come. Cotton is holding up well in spite of the heat. Insects are found in some fields and some dusting is being done where they are found. Mrs. Alta Rehm of Uvalde spent several days last week with Mr. and Mrs. W.W. Tedder. Mrs. Frances Pearce, Mrs. Sam Fullagar, Mrs. James Finlay, Jr., and Mrs. H.D. Martin enjoyed an afternoon of bridge Thursday of last week in the Pearce home. Mrs. Guy Phillips is a patient in Brady Hospital following surgery Thursday. Floyd Underwood spent several days last week in Brady Hospital for examination and treatment but is at home and feeling much better now. C.S. Hickman of San Antonio was overnight guest of Mr. and Mrs. Tom Hickman Thursday. Mr. and Mrs. Roy Langerhans and children of Anson, were guests last weekend of Mr. and Mrs. O.C. Utsey, then went to Fredericksburg Monday to visit this week with Mr. and Mrs. A.J. Langerhans. Mrs. W.L. Robinson, Mrs. M.L. Tedder and Minnie Kelley of Brady visited Saturday afternoon with Mrs. L.M. Farmer and Mrs. Tom Hickman. * * * PERSONAL MENTIONS Leaves for Navy Gary Cunyus will leave Saturday for San Diego, Calif. where he will report for Navy training. He plans to fly from San Angelo. * * * Here from Lubbock Mr. and Mrs. Bill Hart and sons of Lubbock, visited Mr. Hart’s cousin, Mrs. E.T. Williams and Mr. Williams the past weekend. * * * Daughter to Dacuses Mr. and Mrs. Pence Dacus are the proud parents of a daughter, Pennie Denise, born July 28 in Los Angeles, Calif. She weighed 6 pounds, 14 1/2 ounces, according to the paternal grandparents, Mr. and Mrs. Doyle Dacus of Abilene. Pence, a former Brady High School and Southwest Texas State College athletic star, is head coach at Pepperdine College in Los Angeles.

Leave a Comment