The Devine City Council approved an Ordinance authorizing a three-year, $450,000 tax note to fund the renovation of the Devine Golf Course clubhouse.
Security State Bank submitted the best bid with an interest rate of 1.37 percent, a number that SAMCO Capital financial consultant Andrew Friedman said “knocked [his] socks off,” when he presented the bid during the Special meeting last Tuesday, September 22.
“We were estimating three-and-a-half percent, so very pleased to come in with such a low interest rate,” Friedman said.
The total cost of the tax note, including $25,000 for cost of issuance and $14,891.14 in interest, is $489,891.14.
The $450,000 in project funds are scheduled to be delivered to the City on October 21, with the first interest payment of $5,061.39 not due until August 1, 2021. Principal and interest payments will be made every February 1 from 2022 to 2024.
The move brings the City closer to freeing itself from $32,530 monthly payments to SG Golf Management, the company that oversees day-to-day operations of the golf course. The contract between the two entities stipulates the monthly financial support from the City until a turnkey renovation of the clubhouse is complete.
“As you get these improvements done, you’ll get the golf course off the City’s books and stop realizing all the expenses that go along with running a golf course and let the management company take over the full extent of managing and running that golf course,” Friedman said.
A motion by District 5 Councilwoman Debra Randall and District 3 Councilman David Espinosa to approve the Ordinance authorizing the tax note passed 4-0 with support from District 2 Councilman Steve Lopez and District 4 Councilman Chuck Guzman. District 1 Councilman Rufino Vega was absent.
By Marly Davis
Staff Writer
