FINANCIAL_SERVICESAPPROVED

City of Lake City AgendaPacket Special Called Council Meeting 2026-05-26

Lake City assumes $5.5M state loan for WWTP acquisition

$5,500,000.00City of LakeSTATE OF FLORIDA DEPARTMENT OF COMMERCEMay 26, 2026

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Description

The City of Lake City is authorized under Resolution 2026-057 to execute loan documents with the State of Florida Department of Commerce for a $5,500,000 Rural Community Development Revolving Loan Fund facility to finance acquisition of the North Florida Mega Industrial Park Wastewater Treatment Plant. The loan, assumed from Columbia County under Loan Agreement No. S0244, will be repaid from pledged net utilities revenues and matures July 18, 2032.

Contract Details

Contract Amount

$5,500,000.00

Vendor

STATE OF FLORIDA DEPARTMENT OF COMMERCE

Agency

City of Lake, FL

Contract Type

FINANCIAL_SERVICES

Document Date

May 26, 2026

Contract Term

Effective date of Novation through July 18, 2032 (maturity date of substitute promissory note)

Renewal Date

2032-07-18

Renewal Info

Promissory note bears simple interest at 2.5% per annum, increasing to 3.5% if the Florida Treasury Investment Pool Special Purpose Investment Account rate exceeds it by more than 1%; all outstanding principal and interest are due at maturity on July 18, 2032, with prepayment allowed at any time without penalty. No automatic renewal is provided; issuance of additional parity debt is subject to the City’s Master Utility System Bond Resolution tests.

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