City moves forward with project financing
HARLAN – The City of Harlan has approved financing for $1.5 million in general obligation capital loan notes with United Bank of Iowa at a true interest rate of 2.477 percent and total interest costs over 10 years amounting to $180,579.78.
United Bank of Iowa was the lowest of three local bidders, the others being Midstates Bank and Shelby County State Bank. Midstates Bank had a true interest cost bid of 2.611 percent and total interest costs amounting to $189,864.47. SCSB bid a true interest cost of 3.016 percent with total interest costs of $219,831.65.
The Harlan City Council approved the United Bank bid 4-0 with Jay Christensen, Jeanna Rudolph, Dave Miller and Sharon Kroger voting aye. Greg Bladt and Dave Pedersen were absent.
Owen Gerard, senior managing consultant with PFM Financial Advising LLC, Des Moines, who handled the sale, said this was a different kind of loan note issuance called a private placement, where local and regional banks were afforded the opportunity to provide a competitive bid. The process was quicker and likely less costly than a similar full bidding process.
Twelve banks were contacted with the three local banks submitting bids.
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