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Board approves plan to pursue financing for Knox County nursing home renovation
Summary
The Knox County Board heard a financing presentation from Midwest Bank and approved moving forward with the county’s selected financing option for a proposed nursing home renovation; the proposal included a $10 million construction line, an initial adjustable rate near 4.8%, interest-only construction payments and no prepayment penalty.
The Knox County Board on July 23 approved proceeding with county staff’s recommended financing option to fund a renovation of the Knox County Nursing Home.
Lance Otting, a Midwest Bank representative, told the board the bank proposed two financing approaches and described the county’s preferred option as a construction draw loan with a $10,000,000 construction line, monthly interest-only payments during an approximately 18‑month build-out and conversion to permanent financing on completion. “We did provide a a proposal for the Knox County Nursing Home for the renovation,” Otting said, noting a quoted starting rate of about 4.8% that would reset on a five‑year cycle based on a Federal Home Loan Bank–linked index. He said the proposal includes no prepayment penalties.
The board discussed the recommendation during the Ways and Means report and then moved to approve the financing option as presented. The roll call read in the record at the time was delivered as “12 ayes, 1 name, 1 abstention” (the clerk recorded the roll and announced the motion had passed).
Why it matters: renovating the nursing home would involve capital work, a construction period with drawdowns and later permanent financing; the board’s authorization to pursue the recommended option allows staff to complete loan documentation and return to the board with required signatures and minutes authorizing execution.
What was said: Vice Chair Brian Frederick, who led the committee remarks, said the county will need to identify authorized signers and provide board minutes that formally authorize the financing move. Otting said the loan structure asks the county to identify individuals authorized to execute loan documents and provide board minutes authorizing the financing.
Next steps: County staff will prepare the transaction paperwork and return with the formal financing documents and recommended signatures for board action. The recording in the meeting minutes indicates the board authorized moving forward; final approval and loan closing will follow required documentation and any additional board actions.
