Quitman refinances loan to build gas line
Quitman City Council last Friday voted to refinance the Quitman Development Corp. (QDC) existing loan through Southside Bank to fund gas line construction costs for the Quitman Business Park.
On Aug. 15, the council approved refinancing the loan through Wood County National Bank to add $100,000 for the gas line costs. Under the WCNB plan, the loan would have a 20-year period payment plan.
When Southside Bank heard about the refinanced loan, representatives from Southside reached out to the QDC with a proposal. At first, Southside offered a 3.45 fixed interest rate for the loan with similar payment amounts over 16.5 years, QDC Executive Director Denea Hudman explained.
Southside then offered a fixed rate of 3.3 percent with a 16-year payment plan and $9,500 for all issuance cost and financial consulting fees. The total loan amount is $1,117,500, including issuance cost and fees, Hudman said.
In response, WCNB matched the 3.45 percent fixed rate, but the bank was not sure about the fees.
The QDC board directors chose to go with Southside for the 3.3 percent fixed rate and 16-year plan Friday morning ahead of the council meeting in the afternoon.
Also at the QDC board meeting, directors gave those interested in buying the Shops at 107 building permission to build on the pass-through based on approved plans.
The building has been for sale and there are two people interested in purchasing it. They both would like to know if they could build on the pass-through area, Hudman told the board.
The potential buyers suggested having vendors sell products in the pass-through and build an enclosure for security purposes.