The Italy Economic Development Corporation and the Italy City Council approved the financing for a community center – the Boze Building located at 161 W. Main — at called meetings Thursday evening.
The IEDC met at 6 p.m. to name Nick Bulaich with First Southwest as placement agent for the corporation’s sales tax revenue bonds. Leroy Grawunder, bond attorney with McCall, Parkhurst & Horton provided the amortization schedule.
Bulaich said they solicited $360,000 sales tax revenue bonds from 12 financial institutions and received two offers. One, he said, was from Zion Bank in Salt Lake City, Utah. The downside of this proposal was the rates were not fixed. He said the interest rates were higher than the offer from BB&T of Charlotte, NC. This proposal offered a 15 year fixed-rate loan at 3.26 percent.
Debt payments would be required twice a year – Aug. 15 and Feb. 15. The August payment would be interest only with the February payment including both principle and interest.
Funding for the project will be available, according to Bulaich, on Feb. 2.
Following the unanimous approval of IEDC members, the city council convened in a called meeting to give their approval to the financing.
They unanimously approved a resolution (R12-0105-01) authorizing the issuance and sale of sales tax revenue bonds and a sales tax remittance agreement.
In other business, the IEDC named Tom Little secretary for the group.