The refinancing was approved on Wednesday by the Warren County Port Authority board during a meeting in Lebanon.
In May 2009, the port authority and owners of the mall, Chelsea Monroe Holdings, and the city of Monroe completed a tax incremental service and cooperative Agreement supporting issuance of $5.6 million in bonds for the mall development, according to a resolution approved Wednesday by the port authority.
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The single-level outdoor mall, on the southeast corner of Interstate 75 and Ohio 63, now features 100 outlet stores from retailers including Polo Ralph Lauren, Saks Fifth Avenue Off 5th and Under Armour. It is part of one of the country’s largest mall chains managed by the Simon Property Group.
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“Bradley Payne Advisors, LLC, the Financial Advisor, has advised the City and the Authority that interest savings could be achieved,” according to the resolution.
The projected savings of the refinancing through the port authority is $700,000, according to Matt Schnipke, deputy director of the Warren County Office of Economic Development and secretary of the port authority.
“This savings will be realized by the refinancing producing a better interest rate. The interest rate will drop by about 1.5 percent-2 percent from the current rate,” Schnipke said in an email.
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The proceeds will be used to pay off $3.875 million of the 2009 bonds still outstanding and refinance $3.75 million, according to the resolution.
According to financial records reviewed at Wednesday’s meeting, the port authority also anticipates $700,000 in income in a tax incremental financing fund established in 2009 to help pay for roads and other infrastructure at the mall. The income comes from property taxes diverted to the special account set up to hold the funds.
The port authority is to receive a one-time $25,000 issuance fee upon closing.
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