Huntington city council voted to support a group of investors that want to purchase a 12 acre piece of property adjacent to the American Car and Foundry on 3rd avenue. Council voted 10-0-1 to approve the use of Section 108 HUD funds for the investors, led by Tom Turman, in their efforts to build a Marshall University baseball stadium on the site. Council chairman Cal Kent abstained from voting.
The group will use Brownfield Economical Development Intiative and HUD funds. Both will sources of funds will contribute $1 million each. The HUD money will be repaid by the investor group over a five year period. If the group defaults, the city must repay HUD $1 million.
“The BEDI is funds set aside to clean and reuse former industrial sites or any sites that are perceived as an environmental problem,” said Huntington Development and Planning Director Richard Dixon. “One of the stipulations of a BEDI grant is you must couple it with an equal amount of 108 funds,” he said. Council approved the use of BEDI funds in July.
If the development group fails in its promise to repay HUD, then the city would be responsible for the money. The city, through Huntington Urban Renewal Authority, would own the property upon repayment to HUD.
A resolution of council designating the property a blighted area in need of redevelopment passed 10-0-1 (Kent abstaining). The property now comes under the control of HURA.