Anna Community Development Corporation approves refinancing and taxable loan, authorizes $500,000 principal payment
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Summary
The Anna Community Development Corporation (CDC) and City Council approved a tax-exempt loan not to exceed $1,442,381.90, a taxable loan not to exceed $916,754.34, and a $500,000 budget amendment to reduce the taxable loan principal. Council voted unanimously on the CDC resolutions.
The Anna City Council on Sept. 9 approved resolutions requested by the Anna Community Development Corporation (CDC) to support downtown redevelopment, including refinancing a prior Lamar Bank loan, authorizing a tax-exempt loan not to exceed $1,442,381.90, and a taxable loan not to exceed $916,754.34.
Economic development director Joey Grisham told the council the CDC board approved the refinancing at its last meeting. "A few years ago, there was a loan with Lamar Bank, and this was a refinance of that loan," Grisham said. He described the action as part of the CDC's strategy to acquire and redevelop downtown parcels to add value to the area.
Council also approved a budget amendment within the CDC fiscal-year budget to authorize a $500,000 payment to reduce the principal of the taxable loan. The three related council actions (two CDC loan-authorizing resolutions plus the CDC budget amendment) passed unanimously.
Why it matters: Council and CDC officials said the refinancing and the taxable loan will allow the CDC to continue purchasing and assembling downtown properties for redevelopment. Council members said the acquisitive strategy is designed to catalyze private investment in the downtown area and to enable redevelopment projects that would otherwise be difficult on a parcel-by-parcel basis.
Key facts and votes
- Resolution approving a tax-exempt loan in an amount not to exceed $1,442,381.90 (CDC/EDC refinancing): passed unanimously. - Resolution approving a taxable loan in an amount not to exceed $916,754.34: passed unanimously. - Budget amendment to reallocate CDC funds and authorize a $500,000 payment toward the taxable loan principal: passed unanimously. - Attendees: staff noted Matt Sullivan from Government Capital was present to observe and answer questions related to the taxable loan.
Council members who spoke praised the CDC's land-acquisition efforts and said the loans and principal reduction are intended to position the downtown for later redevelopment and economic returns.
What to expect next: Staff will complete the refinance and loan-closure steps identified by the CDC and provide required contractual and budgetary documentation to the council and CDC board as the transactions move toward closing.