By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The process of putting a deal together to get the purchase made on the Atrium Hotel is continuing forward, as the Hutchinson City Council heard about financing options on Tuesday. The city is looking at temporary notes that would be paid off over four years to pay for what they don't already have in reserve from transient guest tax.
"The issuance, as modeled right now, would be $675,000," said City Manager Jeff Cantrell. "There's approximately $16,000 to $17,000 of issuance costs, which is typical on these. We have a projected, or at least an anticipated temporary note closing date, not the property closing date, per se, of October 5th for funding."
The financing is going out to local banks. Finance Director Angela Richard believes they can still get really favorable bond terms.
"We're thinking they should be between one and one and a half percent," Richard said. "If they don't, there is a little time where we could go out to market and formally bid these, or there's another option we could do, which is an internal temp note, so we would buy the notes from ourselves, essentially. That's not the route we want to go initially, because interest rates are so low."
The council will have the chance to approve any issuance of notes at a future meeting should they get the numbers they want.