The $360,000 needed to complete the second phase of the Ephraim Square restoration project has been made available to the city as both an outright grant and a long-term loan.

The second phase will include the conversion of the Relief Society granary into a pioneer museum, the installation of kitchen facilities, offices and public restrooms in the stone building attached to the old mill, and the development of parking in the grounds and landscaping of the entire area.The first phase of the project - the restoration of the old mill itself - was completed last year and that building is now occupied by the Sanpete Trades Assn. It leases space in that building to craftspeople.

The twin purposes of the restoration are industrial development and historic preservation, according to Mayor Robert Warnick.

Half of the $360,000 Community Impact Board money is coming in the form of an outright grant and the other half in the form of a 20-year, no-interest loan, Warnick said.

The money needed to pay off the loan will be raised from private sources and invested in government securities, the mayor said. Clair and Winona Erickson are fund-raising co-chairmen.

The Ephraim Square project had its beginnings several years ago when the city had the option of either razing the three historic buildings in the center of town or restoring them.

The restoration option was adopted on the recommendation of an ad hoc committee.

Alan Roberts, architect for the entire project, says preserving the historic qualities of the site while making it economically self-sustaining has been a primary goal.

Paulsen Engineering and Construction, a firm with experience in historic preservation, had the contract for phase one of the project. Now that funds have become available, contracts covering phase two will be awarded.

The city expects to have phase two completed next summer.