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GEC Assists NCMC with Allied Health Complex Funding

Grundy Electric Cooperative, General Manager Scott Wilson addresses the crowd
during the North Central Missouri College Allied Health Complex groundbreaking ceremony.

Grundy Electric Cooperative’s General Manager, Scott Wilson addressed a large crowd gathered at the North Central Missouri College groundbreaking ceremony on Thursday, May 29, 2008. Mr. Wilson noted that Grundy Electric was instrumental in securing $1,330,000 to assist in the construction of the North Central Missouri College Allied Health Complex. The College also obtained additional funding through the “Invest in The Vision” fundraising campaign, the Hoover Foundation and MOHELA.

Other speakers in attendance included Missouri Governor Matt Blunt; State Senator Brad Lager; State Representative Jim Whorton; Missouri Director of USDA, Morris Westfall; NCMC President, Dr. Neil Nuttall; NCMC Board of Trustees President, Dr. John Holcomb; NCMC Foundation Chairman Jeff Crowley; NCMC “Invest in The Vision” Co-Chair, Phyllis Dible; Jeff Ellison of Ellison-Auxier Architects, Inc.; Mack Woodard, Bert and Rose Hoover Foundation; and Cathie Smith, Mayor of Trenton.

The seventh Cooperative Principle, Concern for Community, focuses on developing programs to help sustain local communities. Grundy Electric General Manager, Scott Wilson stated, “Grundy Electric Cooperative has always believed in “Commitment to Community” and your Board of Directors feels strongly about continuing that tradition in a prudent manner, assisting communities in which our members live and work.” The USDA Rural Business and Cooperative Development Services, Rural Economic Development Loan and Grant (REDL&G) Program creates an avenue for cooperative’s to assist communities with economic development projects. Below is a detailed description of the funding acquired by Grundy Electric:

$740,000 – This is a pass through 0% loan from the USDA to Grundy Electric. Grundy Electric applied for this loan on behalf of the Allied Health construction project on the campus of North Central Missouri College. The College will make payments to the Cooperative and in turn, Grundy will pay back the loan to the USDA.

$300,000 – These funds are considered a grant, because it is a grant to Grundy Electric. This amount was also requested to assist the North Central Missouri College project. USDA guidelines stipulate a 20% funding match ($60,000) is mandatory and the loan must be at 0% interest on the original project, in order to access funding. The College must repay this loan on a 10 year repayment schedule to Grundy Electric. However, once the loan is repaid to GEC, the money will remain at your local Cooperative in a separate fund designated as a “Revolving Loan Fund”. Money from this “Revolving Loan Fund” will be available to assist with future economic development projects.

$230,000 – Grundy Electric received a Federal Grant in August of 1997 which established the Cooperatives original $500,000 “Revolving Loan Fund”. A portion of this fund has been loaned to other entities. North Central Missouri College applied for a $230,000 loan and was approved. The College will also repay this loan on a 10 year repayment schedule with interest. In the past, this loan fund has been awarded to projects and repaid with interest. Your Cooperative has earned interest upon investment of these funds and interest has been earned from recipient loan fund payments. The impact of this interest income also helps to keep our electric rates lower.

Thus a total of $1,330,000 will be repaid by North Central Missouri College. The funding source for these loans came from the USDA, Grundy Electric and the Cooperative’s current “Revolving Loan Fund”. Dan Lentz, GEC Board President stated, “Applying for these funds allows the Coop to help businesses and create jobs for our area. When repayment is complete from all entities who have received funding, Grundy Electric will have an economic development “Revolving Loan Fund” balance of $860,000. The money from this local fund has the potential to greatly impact our area.”

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