Northern News Services
Brad Sokach, director of engineering said they need the money to finish developing 22 lots in the new subdivision.
"We had to put in a new road and bring water and sewer lines into the area," he said.
Along with the new loan, the city is also looking at approaching a bank to get a better interest rate on its debt of close to $2.1 million for the Road to Nowhere.
"We are just trying to get a better bang for our buck," said John Hussy, director of finance.
"We are trying to negotiate a four or five per cent interest rate. This just makes good business sense for the city."