Financing for redevelopment approved
by Celia Shortt
The Newnan City Council unanimously approved United Bank’s proposal for the additional financing needed for the University of West Georgia/Newnan Hospital Redevelopment project at its regular meeting on Tuesday.
United Bank’s proposal includes an interest rate of 1.9 percent for the first five years. They are waiving their loan origination fee, closing costs, and any prepayment penalties.
“This offers us flexibility to try to pay off this loan as quickly as possible,” said Newnan City Manager Cleatus Phillips. “That is going to be my ultimate intent. I think we will be in a position to do that.”
The budget for this project is $15 million. The proposals the city requested were for $11 million. Of that amount, $6 million is considered long-term debt because the University of West Georgia will purchase the campus for $5 million once it is completed.
“We are excited for this project,” said Phillips. “The financing came together in a timely manner.”
The proposal also allows recommends the city utilizes the Downtown Development Authority as the conduit for the financing. In that role, the DDA would act as the loan recipient, and an intergovernmental agreement outlining it would need to be created. The financial agreement would also require legal assistance.