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Council approves repayment schedule for Samtec tenant-improvement investment
Summary
The council approved an interfund reimbursement agreement to repay the general fund for $2,054,025.60 in tenant improvements at the Samtec facility, with a schedule starting $500,000 on June 30, 2026, then about $222,034 annually through 2033.
The council approved a formal reimbursement agreement that schedules repayment from the GARS Samtec Fund to the General Fund for $2,054,025.60 in tenant improvements incurred between August 2022 and June 2025.
Finance and Technology Director (referred to in the meeting as Mister Mariotti) explained that the Samtec facility was developed with a $3,000,000 Economic Development Administration (EDA) grant and that the fund's revenues are restricted. Because of the grant terms, the town cannot structure the return as an interfund loan with interest. Instead, the proposed reimbursement schedule repays the principal using excess lease revenues.
Key numbers: the GARS Samtec Fund showed about $590,000 cash available at the time of the presentation. Staff proposed repaying $500,000 on June 30, 2026, and then approximately $222,034 on June 30 of each subsequent year through 2033, which would retire the General Fund's tenant-improvement investment within 10 years of the first disbursement. Staff said the Samtec tenants are on triple-net leases and that the fund is projected to generate an annual excess (estimated at roughly $294,000 for fiscal 2026) above operating and maintenance costs.
Council discussed the financial mechanics and, after a motion and second, approved the reimbursement agreement unanimously.
