The Rugby City Council approved applying for a state Community Development Block Grant which would assist in the purchase of the Johnson Clinic property by the Rugby Job Development Authority (JDA) which would then lease it to the Heart of America Medical Center.

The decision to go ahead with the application was made at the council’s July 6 meeting, and is a necessary step in the JDA process of applying for state funds. If the grant is approved, would enable the JDA to tap into about $110,000 toward the purchase price which is about $776,000.

Brenda Foster, JDA executive director, explained to the council the grant process and review other funding sources the JDA is pursuing. They include about $150,000 in revolving loan funds through the Souris Basin Planning Council and $50,000 from the CONAC REAP Zone. The JDA has also set aside about $155,000 toward the purchase.A purchase agreement is expected to be completed by August, and once that is finished, the JDA would likely look into financing the remaining funds through USDA Rural Development.

Earlier this spring, the JDA agreed to purchase the clinic properties and then lease them to the HAMC over a 15-year period.

The HAMC and clinic are in the final stages of consolidating.