Submitted By
Steven Drazner, CFO
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving the Prepayment in Full of Two Outstanding Bank Installment Loans, Including Principal, Accrued Prorated Interest and Processing/Release Fees, with Pan American Bank and Community Bank of Oak Park River Forest in the Amounts of $213,403.31 and $246,473.63, respectively
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Overview
Overview
The Village has outstanding loan principal with Pan American Bank (PAB) and Community Bank of Oak Park River Forest (CBOPRF). The PAB loan proceeds were used to fund an economic incentive payment to an automobile dealership in 2014 while the CBOPRF loan was used to fund a similar type of economic incentive to a grocery store in 2015. Loan principal and interest is paid from the General Fund Development Customer Services administrative operating budget.
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Staff Recommendation
Authorize staff to prepay in full both bank loans noted above.
Fiscal Impact
If the Village opts not to prepay and pays the principal and interest as scheduled, the following amounts (includes both principal and interest) would be due:
Pan American Community Bank
9/18/18 $43,270.73
12/18/18 $43,270.73
1/1/19 FINAL $247,899.45
3/18/19 $43,270.73
6/18/19 $43,270.73
9/18/19 FINAL $43,270.73
Total as Scheduled $216,353.65 $247,899.45
The expenditures for the principal and interest payments are budgeted in DCS Administration accounts 1001-46260-101-581807 and 1001-46260-101-581808
Loan Payoff Quotes if Paid on or Before 9/24/18:
Pan American $213,403.31
Community Bank of OPRF $246,473.63
Therefore, prepaying the remaining balances for both these loans will save the Village $4,376.16 in interest expense.
Background
The Village has two outstanding bank installment loans which were used to provide economic incentives to Oak Park businesses in Fiscal Years 2014 and 2015. The remaining debt service payments on these loans are summarized above.
The Villag...
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