Hospital authority approves $5.8 million construction loan for Sooner Town Center 2

The Midwest City Memorial Hospital Authority approved terms for a three‑year construction loan to Sooner Town Center 2 totaling $5,800,000, with interest at 4.5 percent. The authority will disburse funds on a drawdown basis as construction costs are submitted for payment.

An authority representative explained the structure: the loan is for 36 months, interest accrues after draws, and Sooner Town Center 2 will be expected to obtain conventional financing at the end of the note so the authority is repaid in full. The presenter said the authority expects to earn approximately $500,000–$750,000 in interest income over the lifetime of the loan.

“Basically, this would be a 3 year loan at $5,800,000 we would earn 4.5 percent interest on that loan,” the authority representative said during the discussion. The loan proceeds are to finance improvements to the former Dick’s Sporting Goods space and will be administered by the hospital authority’s general manager; construction invoices will be submitted to the authority for drawdown.

One trustee expressed concern that the agreement did not include explicit timing benchmarks for construction draws and tenant occupancy; the presenter responded that construction is expected to move rapidly and the authority believed the structure was appropriate. A motion to approve the loan terms was made and seconded; the motion carried by voice vote.

The authority delegated to the general manager the ability to execute necessary documents to implement the loan. No borrower financial statements or borrower loan covenants were read into the record during the meeting materials presented, and the authority did not announce the tenant’s name at the time of the vote.