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Memorial Hospital Authority OKs $5.8 million construction loan to Sooner Town Center 2 at 4.5% interest
Summary
The Memorial Hospital Authority approved a three-year, $5.8 million drawdown construction loan to Sooner Town Center 2 at a stated 4.5% interest rate; trustees noted concerns about construction benchmarks but the motion carried.
The Memorial Hospital Authority approved terms for a three-year construction loan of $5,800,000 to Sooner Town Center 2, with a stated interest rate of 4.5 percent.
Authority staff presented the loan as a drawdown facility: funds would be advanced as construction costs are incurred, interest would accrue after draws and the borrower would be expected to obtain a conventional loan to replace the authority—s note at the end of the three-year term. The presenter described the authority—s expected earnings on the loan as "between $500,000 and $750,000 over the lifetime of the loan." The presenter also said drawdowns will be managed through the general manager.
A trustee raised concerns that the loan terms did not include explicit benchmarks or timing requirements for construction, asking whether the authority should include such measures to guard against slow progress after disbursement. The presenter said construction was expected to proceed rapidly and offered to provide further explanation after the meeting.
A motion to approve the loan was made and seconded; trustees voted by voice and the motion carried. The record does not include a roll-call tally or the names of the mover and seconder in the spoken record.
