BA Floats Note for Target Infrastructure

Broken Arrow City Councilors have approved a resolution entering into a sales tax revenue note with Bank of America, N.A., in the amount of $2.5 million, to build infrastructure for the Target site east of Lynn Lane and north of the Broken Arrow Expressway.
According to the report provided by Assistant City Manager Dave Wooden, the city has two sales tax revenue notes with the bank whereby one-fourth of the half-penny capital improvement sales tax is pledged as collateral.
The new loan would be secured by the same collateral pledged for the other two loans, one of which will be paid off in December 2008 and the second in June 2011, and the interest rate is expected to be in the 4 to 4.5 percent range.
According to Wooden, Target will generate about $1 million per year in sales tax returns … and the city could expect payback in about three years.”

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