DCOS starting over to refinance Texas Leverage Fund loan

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The Development Corporation of Snyder (DCOS) board of directors is going back to the starting line when it comes to refinancing its Texas Leverage Fund loan.

During today’s meeting, directors approved rescinding all previous action related to refinancing the loan and will send each Snyder bank a request for proposals for a 10-year fixed term, interest rates and all applicable fees to refinance the loan.

“Our desire has always been to do this through a local bank,” said board member Dennis Westmoreland.

Board member Michael Hoyle first suggested starting over and requesting proposals before another round of interest rate hikes.

“They (interest rates) are going to continue to rise. We need to look to get this completed,” he said.

The original loan was for $3.5 million over 15 years. 

The board originally approved AimBank to refinance the loan, but bank officials did not receive an opinion from the Attorney General’s office or the governor’s office stating it would be allowed to refinance the loan because of its taxing status.

In September, the board approved refinancing the loan through Government Capital Corp. with monthly payments of $25,193. 

The Snyder City Council approved the refinancing package despite concerns from Bryan Guymon, the city’s attorney. 

Guymon said during the Oct. 2 council meeting that he was in favor of the proposal and saving the taxpayers’ money through refinancing the loan, but that he thought the information provided to the council was missing critical details and suggested a special meeting be held once that information was received.

In November, the board learned that the loan was classified as taxable, meaning a local bank could be used for refinancing after all.

In December 2011, the DCOS board approved a $1.5 incentive package for WL Plastics as part of the $3.5 million loan that also paid for land acquisition and improvements related to the creation of the rail park. 

Until the refinancing package is complete, the DCOS will continue to make monthly payments to the state through Prosperity Bank. 

Executive Assistant Michelle Welsh was approved to sign off on the payments because the DCOS is currently without an executive director.

Also during today’s meeting, the board tabled action on accepting the 2016-17 financial audit findings. 

Hoyle said the DCOS received a clean audit opinion from Eide Bailly, CPAs, but he wanted board members to review the audit and ask questions before approving the documents.

Also tabled was action on accepting a personnel policy. 

Board member Melissa Petty said the office has been operating without a policy and having one is a good business practice.

Petty said she took the city’s policy and has been tweaking it for a two-person office, but was not finished with the work.