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Board authorizes refinancing plan for Dundee property balloon payment
Summary
The board adopted a resolution authorizing pursuit of full faith and credit or revenue bond financing to cover a balloon payment due on the Dundee property in June; bond counsel will help develop the schedule and the district expects to close before the next budget year.
Nate, the district finance representative, asked the board on Dec. 9 to adopt a resolution authorizing staff to pursue financing to meet a balloon payment due on the Dundee property in June. The district said it does not have the cash on hand and plans to pursue either a full faith and credit or a revenue bond as an interim solution, structured as an interest‑only obligation for a six‑year period while the property remains in transaction and sale timing is finalized.
Nate said the district has been working with bond attorneys Hawkins, Delafield & Wood, who vetted the resolution and will assist with timing and execution. He said the district's current loan interest is about 1.5%, and that market movements have worked in the district's favor since initial conversations; staff said they were aiming to push any higher interest into later years and close as late as possible to preserve lower costs.
A board member moved the resolution "by title only" (to avoid reading the full document in public), the board voted and adopted the measure unanimously. Staff said sale proceeds, if finalized, would be used to pay the obligation and that the new debt would be reflected in next year's budget.
