By James Feichtner
The Zionsville Town Hall Building Corporation met April 11 and selected Old National Bank to provide financing for the future town hall. The town received proposals from several banks to provide installment purchase financing for the $10.2 million project.
“A number of different financing vehicles have been explored, but the one that seems to make sense for the town at this point is to do a financing … via an installment purchase agreement,” town attorney Bruce Donaldson said. “It’s a little bit simpler and more streamlined than doing a traditional bond issue.”
The building corporation will borrow the funds from Old National Bank to build the 41,300-square-foot town hall and pay the money back over 20 years with a 2.7 percent interest rate. The financing plan will go before the plan commission on April 18.
The corporation also discussed how to handle the remaining debt on the current town hall building. The town owes about $800,000, which could either be paid off by selling it or changing its lease to a general obligation bond.
“We already have authorization from the council to switch out the lease bond for a straight general obligation bond,” Donaldson said. “We either do that or you pay off those bonds in some fashion. If the property were to be sold you could use those proceeds to pay of those bonds.”