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Paul “Andy” Stewart
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Tab 11
Ledger, The (Lakeland, FL)
June 24, 2009
Delaying Library Could Cut City Costs
Author: DONNA KELLY
DUNDEE Town Manager Andy Stewart asked the Town Council Tuesday night to delay
construction of the new library so the project will remain eligible for grant funding. The town
has a 20-year, $2.8 million loan at an interest rate of 5.1 percent. The town pays about $18,633 in
interest plus principal each month.
If the loan is refinanced with a 40-year, 4.375 percent loan through the U.S. Department of
Agriculture, the monthly payments would drop to $12,363. But the best deal, Stewart said, is
delaying construction another month or two to find out whether the town will be approved for a
USDA grant that would significantly reduce monthly payments.
If the $2 million USDA matching grant is approved, this would enable the town to refinance a
smaller amount - $2 million at a 4.375 percent interest rate for 40 years. This would cost the
town $8,830 per month in principal and interest.
"The town would have a $2 million loan for the Town Center with USDA payable over 40 years,
instead of a $2.8 million loan from Wachovia payable for 20 years," Stewart said. "This would
provide an additional $1.2 million in funding." He suggested continuing with pre-construction
plans for the library because the USDA will reimburse the town for those costs but delay
construction until the town is notified about the grant.
Council members have voiced a desire to move the library out of its rented facility in the
shopping center at U.S. 27 and Dundee Road as quickly as possible. The town pays about $3,800
monthly to rent the space. More than $30,217 has been paid in rental fees this fiscal year, which
ends Sept. 30. Only $11,332 was budgeted for the entire fiscal year.
The new library, which will be in the single-story building at 202 Main St., will take three
months to complete, once plans have been finalized and the construction costs have been
calculated.
The library is one phase of an $1.7 million project that, when completed, will include renovation
of a two-story, city-owned building on Main Street to house administrative offices; and
relocation of the Sheriff's Office substation to what is now known as Town Hall at 105 Center St.
Though a vote wasn't taken, the council came to a general consensus to delay construction until
the town received notice from USDA about the grant funding.
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