Council approves limited‑tax loan to fund ARC project; bond counsel explains terms
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Summary
The council unanimously approved File 2025‑0367 authorizing a limited‑tax loan (described under Louisiana statute as a limited‑tax bond) to be placed with a local bank (recommended by placement agent DA Davidson and described in the record as Capital One affiliate) at a reported 3.99% fixed rate; proceeds will be granted to the ARC and repaid from a voter‑approved tax dedicated to the ARC.
Bond counsel Jason Acres explained File 2025‑0367 to the council, clarifying that although Louisiana law references the instrument as a 'limited tax bond,' this transaction will be placed with a local bank rather than issued on the public bond market. Acres said DA Davidson acted as placement agent and recommended a loan with Capital One Public Funding LLC at a fixed 3.99% interest rate. "Those are what are reflected within the ordinance that you see before you," Acres said.
According to Acres, the loan proceeds will be granted to the ARC under a grant agreement and subject to the same restrictions the parish would have for publicly available buildings; the debt will be paid solely from a voter‑approved tax dedicated for ARC funding and not from other parish funds. A public hearing was opened with no members of the public speaking, and the council voted to approve the ordinance unanimously.
Clarifying points from the record: the meeting transcript contains a conflicting numeric readout early in the introduction of the ordinance (a phrase that could be interpreted as $3,750,000 or $735,000). Bond counsel's explanation detailed the placement agent, lender affiliate, interest rate and that payment will be limited to the proceeds of the dedicated tax. The council recorded unanimous approval.