COUNTY SEEKS LOAN FOR NEW COURTHOSUE IN CHARLESTON

CHARLESTON -- A lease-loan to cover the cost of construction of Mississippi County's new courthouse will be sought.

The Mississippi County Commission authorized attorney Cliff Banta to contact Michael O'Rourke, attorney for Citizens Bank, and Jack Farmer, Citizens bank president, on behalf of the county to arrange a lease-loan.

Banta will also review the lease-loan done for the detention center construction.

Banta advised during Thursday's county commission meeting that he had consulted with experts who advised that the best option for the county would be a non-taxed loan through a lease arrangement. Statutes dictate that the commission cannot secure a loan and the bond issue process would be too lengthy, Banta explained.

The courthouse will be leased to the bank, who will secure the loan on behalf of the county and rent back the courthouse for the loan payments, according to Banta.

Under this arrangement, the Public Facilities Board would not be needed to secure the loan, and the direct lease will reduce fees to $10,000.

At the end of the lease and loan, the county would reacquire the property at a nominal price, explained Banta.

Commissioners estimated the needed capital at $1.1 million, of which approximately $600,000 would be quickly repaid from the monthly sales tax collected over the remaining year and a half earmarked for the courthouse. Jim Blumenberg, presiding commissioner, said that at least half of the principal would be paid in the first two years.

Banta said that it was important to get all the particulars of loan, such as minimum monthly payments for the last $500,000 to be paid during the eight years following the end of the courthouse tax. Banta advised that the right to pay more than the minimum payment as funds became available to the county would be included.

Commissioners agreed to review construction costs and present a firm figure to ensure enough money to complete the project was requested.

"Easier, faster, cheaper," said Homer Oliver, commissioner, in support of the plan.