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Key Colony Beach Commission approves $3 million loan for City Hall improvements
Summary
The commission adopted Resolution 2026‑08 authorizing a $3,000,000 promissory note with First Horizon TE1, LLC to finance City Hall improvements; the vote was unanimous. Commissioners discussed accounting, IRS compliance and tracking loan proceeds separately.
The Key Colony Beach City Commission on May 21 voted unanimously to authorize a $3,000,000 loan to finance improvements to City Hall.
The resolution (2026‑08) approves a promissory note and loan agreement with First Horizon TE1, LLC and designates the note as a "Qualified Tax‑Exempt Obligation" under Section 265(b)(3) of the Internal Revenue Code. Vice‑Mayor Doug Colonell moved to approve the resolution and Commissioner Tom Harding seconded; the roll call vote was unanimous and the resolution was adopted.
Commissioner Harding, serving as the Secretary‑Treasurer, briefed the commission on April financials and stressed the need to monitor total project costs and avoid unnecessary charges over the life of the loan. He said the loan's interest rate had not yet been set and would be calculated at closing, and he urged separate accounting for loan proceeds and project billing. The commission did not set a final funding schedule during the meeting.
Next steps: the city will proceed toward closing and is expected to finalize loan terms and accounting procedures before releasing funds for City Hall hardening and related work.
