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HomeMy WebLinkAbout06-11-18 City Commission Packet Materials - C8. Loan Agreement with First Security Bank for Sports Park Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director Anna Rosenberry, Assistant City Manager SUBJECT: Loan Agreement with First Security Bank for Sports Park. MEETING DATE: June 11, 2018 AGENDA ITEM: Consent RECOMMENDATION: Authorize the City Manager to sign the final loan agreement when received as long as the terms remain the same. BACKGROUND: On February 12, 2018, the Commission directed the City Manager to continue to work with the Sports Park Foundation to develop agreements and secure a loan for $1,700,000. The City issued requests for proposals for loan services and selected First Security Bank. Terms: • 3.74% Interest Rate • 20 year Term • $0 origination fee • Bi-annual payments • Interest only payments until June 2020 The Sports Park Foundation will provide the funding for the payments through their management of the Sports Park and debt agreements with the City. 132 The Sample loan documents are attached and we do not see any changes to the terms upon bank approval. ALTERNATIVES: As the Commission suggests. FISCAL EFFECTS: The General Fund will take on this debt and make payments. The Revenue generated at the Sports Park Foundation will offset the payment. Attachment: Sample Loan Agreement Report compiled on June 1, 2018 133 134 135 136 137 138 139 140