Title
Subject: Communication from Jim Spodick wishing to discuss paying off a loan on 255 North Memorial Drive. (Res.09-1509)
Recommendation of the Loan Board on 6-18-09: To defer this item to allow for additional analysis with the option of polling the board for a decision.
On June 30, via an electronic poll, the Loan Board of Review
recommended that no discount on the loan amount be given based
on the relative value of the property to the loan, and that there be a
$40,000 discount on the loan to $635,000, based on the early payoff.
Fiscal Note: The loan is a no-interest balloon payment loan for $675,000 due on October 8, 2011. The reduction of $40,000 is recommended because the loan would be paid off early. Specifically, $635,000 paid now is equivalent to $675,000 paid in 2 1/4 years at the interest rate that the city currently earns on its short term investments (approximately 3%).