By Becky Killian, Staff Writer
Officials have approved a $2 million loan to pay for the ongoing work at the new Washington County Highway Garage facility. The vote was made during the Tuesday, Sept. 3, meeting of the Washington County Council.
Representatives from First Savings Bank detailed how the loan will work:
The loan collateral will be $2 million in existing funds the county has and that will be invested in either a treasury bond or a certificate of deposit. The county will earn interest on the investment and the amount earned will depend on which type of investment officials choose.
The seven-year loan will have an estimated annual payment of about $350,000. The county has earmarked about $375,000 in existing County Economic Development Income Tax that will be used for the loan payment.
The loan interest will cost about $439,000 over the seven-year term.
“We’re not going to be raising taxes,” Commissioner Todd Ewen said. “We’re just trying to get this thing built.
Ground has already been broken on the $4.8 million highway garage. The project was undertaken as a Build-Operate-Transfer process (BOT), which Indiana law allows as an alternative to the traditional government building process that requires the government entity to get a design from an engineer, then seek bids, and obtain a bond to pay the costs. With the BOT, the county selects a developer who shoulders all costs until the project is completed to the satisfaction of the county. The developer is then paid a guaranteed pre-determined project cost.
Commissioners have pushed for the project, saying the highway department’s current facility is in a poor location and has insufficient room for supplies and equipment.
