During the meeting, it was discussed that the agency’s five-year balloon note, initially used to finance the former Waterman site, is due. The staff presented two refinancing options: securing a traditional bank loan or utilizing internal financing from the city’s general fund. The internal financing option emerged as the preferred choice, offering the flexibility to avoid prepayment penalties and closing costs typically associated with bank loans. Additionally, the general fund would benefit from interest payments, essentially keeping the money within the city.

The recommended refinancing plan involves a 15-year simple interest loan with a rate of 2.875%, closely aligning with the agency’s current monthly payments and maturing in 2040. This approach offers a steady payment schedule that the agency can afford without financial strain, while also allowing the city to continue earning interest at a favorable rate compared to current market offerings.

The consensus among the attendees was in favor of pursuing the internal financing option, recognizing the strategic advantage of maintaining financial control and flexibility. The decision also serves to release the property from external encumbrances, providing further operational freedom.