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Show EPHRAIM SQUARE FINANCING STRATEGY As noted in the Application, Item 3-8, we have stated that the Ephraim Square Project bea loan at 0% interest for 20 years with one balloon payment at the end of the 20 year period for the whole amount. This strategy has been applied one other .time in our District under the unique circumstance of the Wayne County Courthouse. As you are aware, the Sanpete Trade Associ ati on is a non-profit Association whose only mission is to create jobs for the residents of Sanpete County. The Ephraim Square is critical to the organization's operation, but is not a profit making situation. even though it cre~tes an environment for job creati on. The space woul d be leased out to Trade Associ ati on members below conventional market rates, but enough to handle the operation costs. The redevelopment of the square needs to be by a grant or something similar, such as what is being proposed. The loan from the Impact Board of $258,700 would be invested in a government securi ty . which would generate enough funds to reti re a revenue bond. The actual revenue bond plus the local donatfons and fund raising projects would pay for the renovation of the project. At the end of the 20 year period, the full .amount would be returned to the Community Impact Board. The only loss would be the interest that would have been paid during this 20 year period, but the community and the local economy would receive a basically reve·nue-free center with no actual cost to the Community Impact Board other than the above mentioned loss of interest. If the Impact Board is amenable to granting the entire amount or any portion of it, this would certainly be appreciated. /03 |
