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Halifax supervisors record moral-obligation support for IDA purchase of 2507 Houghton Ave.
Summary
The board agreed to record a moral-obligation note up to $1.12 million to support the IDA's purchase of 2507 Houghton Ave., a move the IDA said would enable redevelopment and leasing of a 32,000-square-foot building; the notation was entered by voice vote.
The Halifax County Board of Supervisors voted to record a moral-obligation notation in support of the Industrial Development Authority—or a proposed bank financing of $1,120,000 to buy 2507 Houghton Avenue, the former Pacific Headwear building.
The IDA representative told the board the authority has signed a contract for the property and is seeking a First National Bank note currently in underwriting. "We have asked for a 20 year term with 10 years, with a balloon at the first 10," the IDA representative said, adding an estimated interest rate in the 5.9% to 6.3% range.
Board members asked about timing and risk; staff described the action as a notation in the minutes reflecting the board's support. The motion to include the IDA's moral-obligation request in the minutes was approved by voice vote.
According to the IDA presentation, the building would provide roughly 32,000 square feet of leasable space once renovated; the speaker said the purchase price equated to about $67 per square foot and that one tenant is already lined up though a final lease was not released. The speaker said the IDA requested the notation to support the financing needed to close before year-end.
The board did not adopt an ordinance or pledge county debt; members recorded the board's support in the minutes following the request. The item was presented as a staff-supported memorandum and the IDA said final loan terms and leases remain subject to underwriting and further documentation.
