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AGENDA ITEM #5.1 <br /> REPORT TO <br /> CITY COUNCIL <br /> Date: March 8, 2006 <br /> Subject: City Hall Refinance <br /> Report: The lease purchase agreement for the City Hall <br /> was completed in February, 2004. The agreement was <br /> drafted by the City's Bond Attorney Briggs and Morgan <br /> `- along with American National Bank's Attorney. The <br /> amount of the lease purchase agreement was $1,100,000. <br /> Part of the agreement allowed the City to pay down this <br /> amount when the city garage and old city hall buildings <br /> were sold. The agreement states that the interest rate would <br /> be equal to the Wall Street Journal prime plus 19 basis <br /> points adjusted every two years on March V. <br /> The current balance for the loan is $403,674.13. American <br /> National Bank is willing to modify the current rate plan to <br /> the Wall Street Journal prime minus 75 basis points which <br /> would result in a rate adjustment to 6.75%. There would be <br /> no fees or outside costs for this transaction. <br />