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Anna council approves CDC loan package to refinance downtown land, fund parking lot
Summary
Council unanimously approved a resolution authorizing CDC loans — a tax-exempt loan up to $1.5 million and a taxable loan up to $940,000 — and a $500,000 principal payment to reduce the taxable loan, to support downtown land refinancing and a future parking lot.
The Anna City Council unanimously approved a resolution on June 10 authorizing an Anna Community Development Corporation (CDC) project that includes a tax‑exempt loan of up to $1,500,000, a taxable loan of up to $940,000 and a $500,000 payment to reduce the principal of the taxable loan. The motion to approve was made by Council Member Totten and seconded by Council Member Herndon; the vote was 7–0.
Economic Development Director Bernie Parker told council the CDC owns roughly five acres of downtown property and the parcel at issue for this action is about 2.1 acres near the intersection of FM 455 and West Eighth Street. Parker said the resolution will retire an existing loan with Lamar Bank and fund a future downtown parking lot on part of the property to support planned development on Powell Parkway and West Eighth Street.
"This loan will be used to go ahead and remove those structures, to where we'll have them make a piece of property there," Parker said, explaining that several small homes currently on the lots need to be removed for future development and parking. He said the CDC board held a public hearing on May 1 and approved the resolution at its May 22 meeting, and that part of the CDC's 2025 budget designated for downtown land acquisition will be used to reduce the taxable loan's principal.
Parker described two financing approaches: Lamar Bank's structure using existing buildings and land as collateral and GovCap's structure allocating future sales tax receipts for flexibility in economic incentives. Councilmembers asked whether the CDC financing would affect the city's credit; Parker replied financing through the CDC does not impact the city's credit rating.
The council approved the resolution 7–0. Parker said staff expects to remove existing structures, construct a parking lot on the west side of Interurban and continue working to attract private development; staff also announced a developer forum scheduled for July 17.
Votes at a glance: Resolution authorizing CDC loans — approved unanimously, 7–0. Mover: Council Member Totten. Second: Council Member Herndon.
