Interior Gas Utility Approved for Line of Credit
Fairbanks, AK – The Fairbanks North Star Borough Assembly approved a line of credit up to $7.5 million from the Interior Gas Utility (IGU) at the assembly meeting on Thursday, March 27.
The line of credit was an ordinance sponsored by Mayor Luke Hopkins to allow the IGU to advance work in the borough on the natural gas distribution pipeline. Assemblywoman Kathryn Dodge sponsored an amendment to the ordinance which requires the FNSB Chief Financial Officer to notify the assembly on all authorizations of the loan. The amended ordinance passed 7-1.
“This line of credit sends an important message to the state that our community is supportive of this project,” said IGU Board Chair, Bob Shefchik. “Our plans can move forward in good faith to keep the project on time to deliver energy relief to as many people as possible, as soon as possible.”
The ordinance must be paid back to the FNSB, with fair market interest, within three years from the withdrawal date. The line of credit will be available to IGU through 2021, the duration of the expected build-out period.
Proposed schedules begin construction in the downtown North Pole area as soon as the summer of 2015.
The Borough created the IGU in November 2012 after the Cities of Fairbanks and North Pole transferred legal authority to the Borough to create a public utility in the best interest of the community. The IGU Board meets every first and third Tuesday, and meetings are open to the public. Schedules and minutes can be found on the FNSB website, fnsb.us.
For the latest documentation and progress of the IGU, visit interiorgas.com.