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Council selects First National Bank for land and vehicle financing at roughly 4.25%
Summary
After reviewing bids, Newcastle staff and council selected First National Bank to finance a roughly 10-acre land purchase and three tractor trucks; council approved long‑term financing for the property and a 36‑month term for vehicles at about 4.25% interest.
The Newcastle City Council voted April 14 to accept financing proposals from First National Bank for two separate purchases: a real estate acquisition of roughly 10 acres at 1880 North (packet description) and three tractor trucks.
Staff recommended First National after comparing multiple proposals. Staff said some bids required the city to deposit $250,000 with the lender to receive favorable terms; First National’s overall package offered the lowest rates once both the land and vehicle financing were considered. Council approved a 20‑year financing arrangement with First National for the land purchase at an interest rate presented by staff (reported in the packet as approximately 4.25%). Council separately approved financing for three tractor trucks through First National at a reported 4.25% over a 36‑month term.
Council members said staff reviewed total costs, rates and loan terms and recommended First National as the most favorable option in the packet. The motions to accept First National’s financing and to award the vehicle financing passed on roll‑call votes.
Staff will finalize financing agreements with First National and proceed to closing for the land purchase and vehicle acquisition.
