Eustis CRA board approves general-fund refinancing for Waterman site

At a meeting that began at 5:30 p.m., the City of Eustis Community Redevelopment Agency Board voted 5-0 to approve a general-fund loan to refinance the existing CRA loan on the Waterman site.

City staff said the board had previously directed staff to return with financing options and chose to have the general fund provide the loan at the same favorable interest rate the CRA had previously used. "The interest is 2.875," City staff member Laurie Carr said, adding the loan will run 15 years and be paid off in 2040.

The finance option approved avoids external closing costs and early prepayment penalties, city staff told the board. "We gave you 2 options to either go out and do external financing or have the general fund finance loan," Carr said. She said using the general fund gives more flexibility because the city owns the property and there would be "no red tape" for early prepayment or repurposing the site.

Under the approved terms, staff said there is no balloon payment and the monthly payment will be about $30 more than the previous schedule. Carr noted that, assuming no legislative changes, the Community Redevelopment Agency's sunset is 2047 — the loan schedule would retire the debt before that date.

Board member Tom made the motion to approve the loan; the transcript does not identify who seconded the motion. Chair Hawkins then called for a roll call vote. The roll call recorded five affirmative votes: Mr. Aspati, Vice Chair Ashcraft, Mr. Holland, Miss Lee and Chair Hawkins. The motion passed 5-0.

Staff said the same loan terms will be presented to the city commission in an upcoming meeting.

The board's action was procedural approval of the financing terms; no external financing was pursued as part of this vote.