CRA Bond Bids Considered

The Cedar Key Community Redevelopment Agency (CRA) received bids November 28 from five banks regarding bonds for $9,200,000 to be paid off over 20 years. Repayment of the bonds would be from incoming revenue for redevelopment.

Bank of America, BB&T, Capitol City, SunTrust and Wachovia banks sent bids, the last bid arriving less than five minutes before the 3:00 PM deadline. Richard Wagner, a financial advisor to the CRA, opened the bids and gave a preliminary analysis of the offers. He said that the bids by Bank of America, SunTrust and Capitol City fell within an acceptable range. His recommendation will be made December 3, prior to the December 4 meeting at which City officials will choose a lender.

The Bank of America quoted the lowest interest rate, at 3.88 percent. SunTrust offered the nest higher rate, at 3.91 percent. Capitol City offered an interest rate of 4.78 percent, and had additional terms based on a percentage of prime rate and provisions for disasters. Each bid included terms for early payment of the loan.

BB&T and Wachovia offered to loan less than the full $9,200,000, with Wachovia also asking for security beyond the CRA funds by the City of Cedar Key for a loan of $6,600,000.