Le Mars, Iowa · Saturday, March 13, 2010
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City council OKs $200,000 dialysis center loan

Wednesday, September 2, 2009
By Jolene Stevens
Efforts for a new dialysis services center in Le Mars moved another step ahead Tuesday as Le Mars City Council members approved a $200,000 unsecured loan to help the center become operational.

The interest-free loan, coming from Local Option Sales Tax (LOST) money, is scheduled for payment "at the sunset" of the LOST program Dec. 31, 2016.

An earlier option discussed by the council two weeks ago, in response to a Le Mars Area Dialysis Services (LADS) request, had been to provide a $100,000 five-year forgivable loan. Council members had called on the public for comment on that funding possibility.

LADS spokesman James George said the loan approved by the council puts total current funding for the project at $1,207,000, slightly over the initial goal of $1.2 million.

George along with Mike Donlin, administrator of Floyd Valley Hospital, and dialysis supporter Don Law thanked the council for help in moving the center closer to reality.

The loan, George said, would be used by LADS as an interim funding source until Medicare payments start coming in after the center opens.

Councilman John Leonard said he had received more input on supporting the LADS center than he had received on any other issue during his 4 1/2 years on the council.

Councilwoman Delana Ihrke said she had met earlier, along with other city representatives, with LADS officials to discuss the possible loan and its effect on the tax status of either entity involved.

Indicating that she had received many calls for and against the city's proposed assistance, Ihrke said she felt comfortable approving the larger loan.

Earlier Ihrke shared concerns about the city possibly "setting a precedent" on using the LOST revenue in such a way.

Councilman Rex Knapp said he was interested in assisting LADS as long as there was "no burden" to the city and recommended council members move ahead in providing the funding.

City Finance Director Bill Cole assured council members adequate LOST revenue could be provided for the loan through internal adjustments of LOST funds currently available on hand.

The LADS center will be in a building on the northwest corner of the intersection of Central Avenue and First Street Southwest.

© Copyright 2009 Le Mars Daily Sentinel

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I am all for this LADS center. I have donated to this cause myself in memory of my mother. It will be a godsend for all of the people in Le Mars that require dialysis to live. Most of them have to drive to Sioux City three times a week, rain or snow at 5 or 6 in the morning. I am not sure it would be OK to use LOST for this. But I guess Le Mars has spent more for a lot less. The story wasn't clear, is this loan forgivable or not?

-- Posted by cranemaster on Wed, Sep 2, 2009, at 4:05 PM

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