HomeMy WebLinkAboutVIII-02 Approve Financing Plan for HEDRA Purchase of 400 Vermillion St
City Council Memorandum
To: Mayor Fasbender & City Council members
From: Chris Eitemiller, Finance Manager and John Hinzman, Community Development
Director
Date: November 4, 2024
Item: Approve Financing plan for HEDRA purchase of former Wells Fargo property
Council Action Requested:
Approve financing plan, which includes an internal loan of $400,000 at 3% annual interest to
purchase the former Wells Fargo property at 400 Vermillion Street.
Background Information:
Purchase of this property, at a price of $700,000, was approved by the HEDRA Board on August 27,
2024.
The financing plan for this purchase consists of:
• $300,000 – HEDRA Fund Reserves
• $400,000 – City Debt Redemption fund internal loan to HEDRA
o HEDRA will reimburse the Debt Redemption Fund.
▪ $95,000 – will be realized when the sale of a Lot to Rio Gran is finalized
▪ $305,000 – will be repaid through future HEDRA revenues
Staff seeks Council approval for this financing plan and internal loan. Once approval is granted,
HEDRA will move forward to finalize the purchase.
Financial Impact:
• $400,000 internal loan from the City’s Debt Redemption Fund to HEDRA. This will be repaid in
future years as HEDRA receives payments from various sources, such as property sales.
Committee Discussion:
Not Applicable
Attachments:
• None
VIII-02