Ed Fonseca is stepping up to cover the interest on a $50,000 loan the City of Manteca is making to the Veterans of Foreign Wars Post 1051 to help furnish the new Manteca Veterans Center now under construction on Moffat Boulevard.
Fonseca announced at the City Council meeting Tuesday that he will donate funds to the VFW post to cover the interest.
Under state law, cities are prohibited from making a gift of public funds to any organizations. And if they loan money for any purpose they must charge interest equal to what they would receive if the money was simply sitting in a bank account.
The interest rate is 0.3 percent quarterly based on the return of the Local Agency Investment Fund where the $50,000 worth of bonus bucks the city is loaning the VFW are currently resting.
VFW members indicated they were touched by the gesture made by Fonseca who is a businessman whose interests include Hansel & Gretel Daycare as well as Fun & Games Rentals.
The loan will allow the VFW to have the building’s interior ready for an open house on July 4.
The VFW has until Dec. 31, 2016 to pay back the loan in full with interest.
If the VFW fails to repay the loan, the city will assume 100 percent ownership of all equipment purchased with any of the $50,000. It would also subject the VFW to rent charges beyond the $1 per year currently stipulated in their lease agreement with the city.
The veterans are appealing to the community to donate funds to repay the loan that will cover the cost of furnishings such as a commercial kitchen, tables, and chairs and needed to make the new Manteca Veterans Center operational.
Memorial bricks being sold for $100 apiece will allow a donor to have a message inscribed on them. The bricks will be installed as part of a walk of honor.
For brick donations or to simply help the effort you can reach VFW Post Adjutant Dave Bricker by either emailing email@example.com or calling 456.7299.
Post Commander Carlon Perry can be contacted by emailing firstname.lastname@example.org or calling 275.0410.
The VFW is a non-profit organization that meets IRS requirements for donations to be tax deductible.
The city is building the $1.6 million structure as the Moffat Community Center with the express purpose of being leased to the VFW. The organization will make it available for rent by the public when they are not utilizing the facility. Like the city’s agreement with Big League Dreams, the VFW will maintain the building and grounds and handle rentals.
The lease is for $1 a year for 20 years. There are two 10-year options for renewal. The VFW will have first right of refusal to purchase the building and property if the city should decide at the end of the lease to sell.
The VFW is responsible for all insurance, utilities, maintenance and operations connected with the building and the site as a whole.