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Board approves Bank of America payoff and waiver of 1997 bond covenant
Summary
The board authorized Bank of America to redeem 1997 economic development revenue bonds, terminate the associated ground lease and waive a job-creation covenant; staff said the payoff frees approximately $2.8 million and the bank plans sizable additional investment in the site.
The Rhode Island Commerce Corporation approved a request by Bank of America (successor to Fleet National Bank) to redeem a 1997 economic development revenue bond, terminate the related ground lease and waive an original job-creation covenant.
Neil (speaker 8), who explained the request, said the 1997 transaction issued an $11,000,000 revenue bond and that the borrower has since invested roughly $28,000,000 in the property. "They have about $2,800,000 to pay off," Neil said, and the borrower plans to invest another $50,000,000 to modernize the facility and keep the operations center in place.
A board member asked what the original job requirement entailed; Neil said the 1997 covenant tied job creation to the financing and that the original documents expected roughly 1,000 jobs as part of the project. The board voted to approve the payoff and associated waivers by voice vote.
