On Monday, the Winston-Salem City Council will vote on a proposal to approve a $12.7 million loan with First Tennessee Bank to fund completion of the new downtown ballpark, the new home of the Winston-Salem Dash minor league baseball team. The city council resolution includes a provision that would give the city title to the stadium and the land it sits upon as soon as the loan is secured.
The resolution marks a significant departure from the original agreement with Dash owner Billy Prim. Under the old agreement, the city would’ve taken title to the stadium at the conclusion of Prim’s 25-year lease on the property.
On Friday, Mayor Allen Joines announced the city had changed course with respect to its agreement to borrow the $12.7 million from BB&T. Joines' statement, which was posted on his campaign website, said the city had found more favorable financing terms with First Tennessee Bank. Neither Joines nor Denise Bell, the city’s Chief Financial Officer, would disclose the interest rate on the proposed loan with First Tennessee. However, Joines indicated the interest rate would be significantly less than the rate on the Prim's lease, which is fixed at 5.5 percent.
“That will allow us to build up some debt service reserve,” Joines said.
City Attorney Angela Carmon said the developer consortium — which includes Brookstown Development Partners, Sports Menagerie Stadium LLC and Sports Menagerie LLC — will have “incidence of ownership,” but the city will hold the title to the stadium.
Carmon added that the city’s title will be subject to a ground lease and first position lien deed of trust held by a banking consortium that will finance $15 million of the project’s construction costs.
Once the city council approves the terms of the loan, it will go to the NC Local Government Commission for its approval. Chaired by State Treasurer Janet Cowell, the NC Local Government Commission most approve the city’s loan before financing can be secured, Bell said. Joines previously served on the commission but his term expired last month.
1 comment:
A Loan Modification will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately. Most importantly, a loan modification is not reported to the credit agencies and will not have an adverse impact on your credit scores
Post a Comment