October 5, 2022


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Typical could save $418,000 in bond refinancing | Politics

Uptown Station/Normal City Hall building mug

Uptown Station is at 11 Uptown Circle, Standard.

Regular — A bond refinancing possibility could save Usual upward of $418,000 on a $1.8 million bond utilised to total Uptown Station, if approved by the city council Tuesday night time.

Normal was issued the 2010A Restoration Zone Financial Growth Bond in December 2010 to comprehensive the job, which properties City Corridor. Regular has a probability to refinance the bond for a decrease fascination rate for very long-phrase discounts.

The duration of the bond will remain the exact, remaining paid out in full by 2041.

“It’s indicative of the city and our function to generally look for ways to decrease our extensive-time period personal debt cost,” mentioned Usual Communications Director Cathy Oloffson. “We are just refinancing to acquire benefit of better curiosity premiums that are now readily available.” 

At the time Ordinary took out the bond, the federal govt was trying to strengthen the financial system, mentioned Oloffson. It presently has a federal subsidy that now will help the desire rate.

Whilst the desire level on the bond is 6.3%, the genuine cost to the town is at 3.36% mainly because of that subsidy, she claimed. Refinancing the bond at latest interest prices will consider it down to a small- to mid-2% curiosity level.