CRA 11/12/2010 Minutes - Laserfiche WebLink

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®ebt Service The loan continues to the present day and has always been held by SunTrust. At inception, the interest rate was 1.85% and qualified as tax exempt. As stated earlier, the loan was interest only and short-term in duration until it matured and was refinanced in 2006. As the property was being marketed to developers to build a "town center", bond council would not certify the loan as qualifying for government tax exemption. Being fully taxable, the interest rate climbed to 5.57% in December, 2006. The loan was refinanced again in 2008 with an interest rate of 4.683%. It will mature again at the end of FY 2011. It is expected that the loan will be refinanced and extended again. The City carried the interest charges through FY 2007 and paid $251,011 in accumulated interest charges. Beginning in FY 2008, the CRA assumed responsibility for the on-going debt service. It has paid through FY 2010, $898,512 in debt service. City Center Surnrnary The cost to acquire the combined City Center parcel was $3,289,067. The City paid $3,286,067 and the CRA spent $3,000. Debt Service has been paid to carry the property on interest only loan since it was bought. The City has paid $251,011 and the CRA has paid $898,512. In total, the City has paid $3,540,078 to support the City Center property and the CRA has funded $901,512 through FY 2010. CNCR® CENTBR The Concord Center site was targeted by the City Commission for redevelopment in 2005. A vacant adult entertainment business was located there in a strip shopping center. By purchasing the property, the City could prevent it from reopening. Property Acquisition The property was purchased by the City on 9/15/2005 from Concord Ventures, LLC. The cost at closing was $2,278,346. The City borrowed $2,257,000 from Bank of America in an interest only, taxable note to fund the purchase. Additional expenses were paid outside of closing by the City. They totaled $22,214. The property came with buildings partially leased. The leases were allowed to run their courses until the tenants could relocate. Rents collected totaled $23,320. The CRA received the rental income and also paid some expenses associated with the rental properties which came to $11,436. On April 10, 2007, once the property became vacant, the CRA paid to have all of the buildings torn down. The cost of the demolition was $68,250. ebt Service The loan has always been deemed taxable and subject to market rates. At inception, the interest rate was 5.59% until maturity. The loan ballooned in 2008 and was placed with Hancock Bank again as a short-term, interest only, taxable note. It will mature again at the end of FY 2011 and will need to be refinanced and extended again. The CRA has carried the debt service for the entire duration of the loan. Through FY 2010, the total paid comes to $555,338. www.casselbeny.org