It’s a line of credit that pays for a contract dispute settlement.
The village of Chatham has approved a 10-year loan that will pay $700,000 to the City of Springfield to settle a water contract dispute.
The State Journal-Register reports the 10 year loan comes with a 1.25 percent interest rate for the first five years and a rate not to exceed 2.25 percent the final five years of the loan.
The City of Springfield and the Village of Chatham settled the dispute after the village stopped purchasing water in 2012, violating the contract that had Chatham purchasing water up until 2013.
The settlement agreement includes money for damages plus a 99-year lease of city-owned land for a village pump station.