A strategy to use DeKalb’s $300,000 in Venture Capital Funds in a series of projects was proposed by City Manager Mark Stevens to the City Council Monday night.

Stevens said the city 18 months ago reserved $300,000 for a project, and he wanted to know if the council wished to preserve that strategy or use the funds to put together a package of smaller projects. The council agreed to use portions of funds for smaller projects but did not decide on the amounts.

The funds are designed to attract businesses outside the Tax Increment Financing District.

Under Stevens’ proposal, the smaller projects would include $100,000 for the development of a vacant industrial building so a business could move into an existing building and $125,000 for a revolving loan fund.

Stevens also includes $25,000 in financing an effort to attract a high-quality hotel/conference facility to the community and $50,000 for land acquisition, engineering, planning and infrastructure activities in developing areas.

Second Ward Alderman Michael Welsh said DeKalb has the $300,000 for a “big project.” Because the big project does not seem to be coming right away, the city wants to spend the money on other things, he said.

“Then what happens if the big deal comes along?” he said.

Stevens said DeKalb still would have assets, and he did not think a big project would come along in the next six months. He said the city could keep holding the money or try to generate something for its benefit in the meantime.

“I don’t know if the right answer is to hold the money and wait,” Stevens said.

Spending the fund money would be a high risk, DeKalb Mayor Greg Sparrow said. “But if we sink money into property, the value of that property should rise,” he said.

Stevens said city staff will see what deals can be put together and present them to the council. The proposed package was not set, but if the city is willing to spend some of the money, Stevens’ business plans were the priorities, he said.

In other business, Stevens reported a DeKalb Police squad car was demolished in an accident on Route 38 Jan. 22.

Stevens told the council that DeKalb Police Detective Dan Gerace, who drove the police car, was not injured in the accident. No other people were injured, he said.

The vehicle probably will have to be replaced, Stevens said. The city was not “at fault” and might not have to pay the full cost of a new squad car. He said he had no further details of the incident.