4% ‘floor’ rate set for health centerPublished 8:54am Tuesday, August 25, 2009
A resolution adopted by City Council Monday night amends the limited obligation revenue note for the Dowagiac health and medical office building, 520 Main St.
In 2006, the city entered into a series of agreements for redevelopment of the Central Middle School site and construction of a medical office building since named for Mayor Don Lyons.
The developer and the bank have been negotiating new terms regarding the interest rate on the revenue bond issued for construction of the medical arts building.
The interest rate is still adjustable, but now will have a minimum interest rate (4 percent) and maximum interest rate (6 percent) associated with the loan, which is scheduled to be paid off in 2027.
The bank and developer are requesting approval of this one change in the loan agreement, according to City Manager Kevin Anderson.
“They can’t enter into this agreement without our consent,” Anderson said.
All other items and terms regarding this agreement remain unchanged, he said.