Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Estate Financing topic
No spam. Unsubscribe anytime.
County approves lease-financing to buy Chase Building for $8,000,650
Summary
Floyd County Council unanimously approved Resolution 2024-03 to acquire the Chase Building for $8,000,650 using a lease-financing structure through a nonprofit building corporation; county officials said the bonds will be paid with pledged cumulative capital development fund revenues and ownership transfers to the county after bond retirement.
Floyd County Council voted unanimously Sept. 10 to approve Resolution 2024-03 authorizing a lease-financing structure for the purchase of the Chase Building at a purchase price of $8,000,650.
Brad Bingham of Barnes & Thornburg told the council the county signed a purchase agreement and plans to use a nonprofit building corporation to issue bonds, buy the asset and lease it back to the county so lease rentals will pay the bond debt. "Once the bonds are gone then the property, by law and by lease terms, has to be transferred to the county," Bingham said.
Council members moved and seconded the resolution without recorded opposition. Supporters said the structure allows the county to secure new office space for county officeholders while financing renovations and equipment needed to make the building usable. The motion passed unanimously.
The resolution pledges cumulative capital development fund revenues to lease rentals; the council did not vote on specific renovation contracts at this meeting. The council did not specify a debt schedule or a projected annual lease payment in the public discussion.
Next steps noted by counsel include closing under the purchase agreement and completing the lease financing documentation before bonds are issued.
