Public Hearing: YES ☐ NO ☒ Department: Finance
SUBJECT:
Title
Commission District(s): All Commission Districts
Approve Georgia Environmental Finance Authority (GEFA) Loan DW2020036 Promissory Note and Loan Agreement modification documents. The substantive modifications include (1) a 14-month change in the estimated completion date for the project from March 2022 to May 2023 and (2) a related 14-month delay in the commencement of the 30-year principal amortization period for the loan.
Body
The change is in the Exhibit A - Project Schedule (see attached). The completion date has been changed from March 2022 to May 2023, due to supply chain delays associated with the pandemic.
Information Contact: Dianne McNabb, Chief Financial Officer and Robert Atkins, Treasurer
Phone Number: 404-304-4736: 678-910-5638
PURPOSE:
To permit the County to execute Loan DW2020036 Promissory Note and Loan Agreement modifications, including (1) a 14-month change in the estimated completion date for the project from March 2022 to May 2023 and (2) a related 14-month delay in the commencement of the 30-year principal amortization period for the loan. The $25,000,000 loan was originally approved September 22, 2020, via agenda item 2020-1077.
NEED/IMPACT:
The County has determined that the acquisition and construction of the Project (as described in the Loan Agreement) will benefit the citizens of DeKalb County, and the County has determined that a portion of the Project should be paid with the proceeds to be received by the County from the GEFA loan. The GEFA loan provides a cost savings versus other funding alternatives.
The change is in the Exhibit A - Project Schedule (see attached). The completion date has been changed from March 2022 to May 2023, due to supply chain delays associated with the pandemic.
FISCAL IMPACT:
The fiscal impact remains the same as originally presented. The total debt service approximates $31.8 million, including $25 million in principal and $6.8 million interest over 30 years. The savings versus a traditional revenue bond approximated $5.4 million. The interest rate is 1.67%.
RECOMMENDATION:
Recommended Action
Approve the agenda item authorizing the execution and delivery of the Loan DW2020036 Promissory Note and Loan Agreement modifications and authorize the Chief Executive Officer to execute all other instruments and documents necessary and appropriate in connection with the loan.