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Blowing Rock council approves $2.25 million installment loan for land, Memorial Park work
Summary
The Blowing Rock Town Council unanimously approved a $2.25 million installment loan to reimburse prior land purchases, fund the final phase of Memorial Park and secure a roof replacement as collateral; JPMorgan Chase offered the low bid at a 3.55% rate.
The Blowing Rock Town Council on Sept. 9 voted unanimously to approve a $2,250,000 installment loan to reimburse the town for previously purchased parcels, pay for the third and final phase of Memorial Park and fund repairs tied to Fire Station 1.
Town staff presented the loan as the final step in a process that began in June. The town solicited bids and received six qualified offers; JPMorgan Chase submitted the low bid at an interest rate of 3.55%, which staff said was confirmed by the Local Government Commission (LGC). Staff noted an $8,000 closing fee that makes the effective rate about 3.6% though interest will be paid at 3.55%.
“This is the final stage,” the town’s finance presenter said, describing the solicitation timeline that included a preliminary findings resolution, a formal RFP in July and distribution of closing documents in late August. Staff said the closing was scheduled for Sept. 16.
Council members asked how the new loan would affect the town’s annual debt payments. Staff projected the new loan would add about $225,000 in principal per year over 10 years, with the first payment due in fiscal year 2026–27 (staff said the first payment would be due September 2026). Officials said those payments fit within a multi‑year projection that anticipates other debts rolling off the books.
Councilmember Doug moved to accept the loan resolution; the motion was seconded and carried unanimously. The council recorded aye votes from councilmembers present.
The loan will be secured in part by Fire Station 1, which staff said was recently paid off and will be used as collateral for the installment loan. Staff also said proceeds will reimburse land purchases intended for public safety and future infrastructure needs.
No public speaker opposed the debt during the public hearing. Council members did not propose amendments to the loan terms at the meeting.
The council’s vote authorizes staff to move toward closing with JPMorgan Chase and to complete the LGC application and related closing documents.
