City officials negotiate financing for new Public Safety Center
Ponca City Now - July 10, 2019 3:25 pm
The Ponca City City Commission approved a resolution Monday night which sets in place the funding for the new Public Safety Center, to be built on Oklahoma Avenue between Third Street and Fourth Street.
Ponca City voters approved a sales tax in June to fund the $22 million project. This resolution was to provide for a loan from JP Morgan Chase Bank to the City of Ponca City for construction, to be repaid over an eight-year term.
On Monday night, Commissioners approved accepting a locked-in fixed rate not to exceed 2.5 percent for the loan, with a breakage fee of $2,992,548. However, City Finance Director Marc LaBossiere said Wednesday afternoon, Ponca City has received final approval for the loan, but not the rate lock.
“The rate lock will not be available, so the breakage fee is no longer there,” LaBossiere said. “We should get a firm rate very soon, and assuming it is acceptable, upon executing documents we will have up to 45 days to close the debt.”
The proposed closing date for the loan was Dec. 12, 2019, with maturity set for Feb. 1, 2029. An earlier closing could cause an adjustment in the maturity date.
Payment is secured by a leveraged funds resolution approved by the Ponca City Utility Authority trustees.
