Label
Regional Combined Health Board Loan
Department of Economic Development
Brandon Sehlhorst (x1692) / Paul Syring (x1025) / Melanie Campbell (x1252)
Revised
Title
Authorizing the Mayor to enter into a Loan Agreement and other needed instruments with the Toledo-Lucas County Regional Board of Health to facilitate the acquisition, renovation, and relocation of its offices; authorizing the appropriation and expenditure of an amount not to exceed $5,000,000 from the General Fund; authorizing the Mayor to accept and deposit loan payments into the General Fund; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
The Toledo-Lucas County Regional Board of Health intends to relocate its operations from the Toledo City Building at 635 N. Erie Street, Toledo, Ohio 43604, to a commercial office building located at 1933 Spielbusch Avenue, Toledo, Ohio 43604. The total cost for acquisition, renovation, and relocation of operations to the new facility is estimated at $5,000,000.
The Regional Combined Health District is funded through annual contributions from jurisdictions within Lucas County, allocated based on population. The City of Toledo's contribution represents approximately 62.81% of the total funding. Of the total $5,000,000 estimated project costs the City's share is $3,140,500. The remaining $1,859,500 is the obligation of the other participating jurisdictions.
Given the City's significant financial participation, it is in the City's best interest to support the project by providing a $1,859,500 million loan to the Toledo-Lucas County Regional Board of Health. The loan will carry a 4.0% interest rate with a five-year term and will finance the other participating jurisdictions acquisition, renovation, and relocation cost share.
This financing model saves the City of Toledo approximately $461,000 in interest costs compared to financing terms available through a private bank while earning approximately $228,000 in ...
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