Broker updates IDA on maintenance facility loan

Broker-dealer MBS Capital Markets today updated members of the Inter-District Authority Board about a 12-year-loan it wishes to secure to finance a new maintenance facility for Lakewood Ranch Town Hall's operations department.

The company is planning to help the district obtain a fixed rate, tax-exempt bank-qualified loan with a loan closing to coincide with the start of construction of the facility in mid-October.

Although the maintenance facility is an IDA project, Lakewood Ranch Community Development District 2 likely will take the lead by putting the loan in its name. Lakewood Ranch's other community development districts all would contribute toward costs of the loan.

"Under the statute, the IDA is not authorized to issue bonds," the IDA's attorney Scott Rudacille said of why a CDD would need hold the loan. "The iIDA can incur debt, but it cannot issue bonds."

IDA officials said they hoped their agency, which represents the other districts, would be able to hold the loan directly to simplify accounting and other processes. Rudacille, however, said to do so may be illegal.

Contact Pam Eubanks at [email protected].