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Tunica supervisors review financing options for county facility pending state lease terms
Summary
Supervisors reviewed estimated loan scenarios for a county facility pegged to a potential lease and partial reimbursements from the Mississippi Department of Human Services; staff said a draft lease is needed before recommending a final financing term.
Tunica County supervisors reviewed preliminary financing scenarios for a county facility Thursday and agreed staff should return with a draft lease before the board selects a loan term.
The county’s adviser, Nammi, presented estimated payment models: “The numbers that you have in front of you show 2 and a half million over 15 years and 20 years, that different interest rates depending on on the market. I think 5 and a half percent, for 15 years and a 6% for 20 year, increment.” Nammi said those figures were modeled on “the potential lease payments or lease reimbursements you may be getting from DHS,” but cautioned the county does not yet have a finalized lease.
The nut of the discussion was that different lease lengths and state cost-sharing would change the county’s recommended financing structure. Nammi told the board that if the state planned a 20-year lease with repeated renewal periods, “then maybe we talk about having the same out clause inside your financing structure.” Conversely, the board noted shorter leases could argue for shorter financing terms. A supervisor summarized the choice for members: locking a rate “for the long term” versus refinancing every five years to chase lower rates.
Board members and staff used the county’s estimates to compare annual payments. A supervisor asked whether the annual payments start near $250,000 under a 15-year schedule; Nammi confirmed the estimate. The board discussed a 20-year schedule that would lower the annual cost to roughly $220,000 per year but lengthen the county’s obligation.
County staff also said they had preliminary information from the Mississippi Department of Human Services on a per-square-foot reimbursement. A staff speaker identified as Victor from MDHS provided an estimate: “the square foot reimbursement is, like, $16.88 per square foot. $16.88. We’ll get half of that.” Supervisors then noted that the board would need the exact reimbursement calculation and a written lease to determine whether the county should take a shorter or longer financing term.
No formal financing motion was made at the meeting. Several supervisors said they would wait for a draft lease and clarified that, once the county had firm figures from the state, the board would “come back and, both can vote on whichever way we wanna go.” The discussion closed with staff directed to secure the outstanding right-of-way information and the lease language and return with a recommendation.
The board did not adopt a financing package Thursday; members emphasized that final loan-length recommendations will depend on the state lease terms and the written reimbursement amount.
