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Synovus Bank selected to underwrite Emerson Park assessment financing; assessments lower than earlier estimate
Summary
After one responsive proposal, council selected Synovus Bank for the Emerson Park special assessment loan. The proposed 15‑year tax‑exempt loan carries a 4.48% fixed rate through 2040 and reduces the estimated annual assessment cost to property owners from an earlier estimate.
The Apopka City Council on May 21 selected Synovus Bank as the lender for the Emerson Park special assessment financing after the city received a single responsive proposal to its RFP.
Joel Tindall of Hilltop Securities, the city's financial advisor, summarized the financing: a not‑to‑exceed loan principal near $2.2 million for roadway improvements, a 15‑year term through 2040, a fixed tax‑exempt rate proposed at 4.48% and no requirement for a debt service reserve fund. Tindall said the all‑in true interest cost (TIC) was about 4.93% after closing costs and that total debt service over the loan life would be roughly $3.1 million. The bank’s proposal allows prepayment without penalty but staff and the financing team will confirm whether smaller, individual assessment prepayments can be applied in a manner that reamortizes the loan for remaining payers.
Tindall said the lower interest rate and removal of the debt service reserve requirement reduce the estimated annual assessment obligation for the special assessment area. Compared with the March assessment report’s assumptions, the new proposal lowers the estimated annual cost for the assessment area by about $70,000 overall and an estimated $140 a year per dwelling unit, based on the numbers presented.
Council approved the selection of Synovus Bank unanimously and directed staff and bond counsel to prepare the financing resolution for final approval at the June 4 council meeting and to target a closing on or about June 6, pending final documentation. Staff noted the first debt service payment is expected on Jan. 1, 2026, with regular annual payments thereafter tied to tax collection cycles.
Council members and staff asked staff to confirm with Synovus how the bank would treat partial prepayments by individual property owners (for example, when a home sells and an owner pays off an assessment) and whether the loan could be reamortized to reflect those prepayments without causing shortfalls for remaining payers. Staff said they would clarify that point with the bank before closing.
