Wake to borrow $300 million for construction
Published: Mon, Oct. 13, 2008 03:26PM
Modified Mon, Oct. 13, 2008 03:32PM
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closeRALEIGH -- Wake County will borrow $300 million from Bank of America to keep building projects on track despite the troubled economy, county commissioners decided today.
Commissioners voted 6-0 to secure a one-year bridge loan at an interest rate of 2 to 2.5 percent. The loan will allow projects currently under way to continue, including a new parking deck and new schools.
Meanwhile, commissioners may delay construction of a new courthouse downtown, an expansion of the Hammond Road detention facility and a library branch in northern Wake. County school officials are meeting this week to discuss what school projects to delay.
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The county has canceled $454 million in bond sales because of a lack of a market for the instruments. The $300 million loan will allow it to continue some projects; county officials plan to cut or delay projects worth $154 million.
Raleigh City Manager Russell Allen said he expects to propose a similar short-term borrowing plan to the City Council next week.
Allen said the city will likely need to line up some financing to keep design work on two projects moving forward: a $226 million public safety center and the construction of a network of remote operations facilities costing $223 million.
Allen said the size of the short-term financing package hasn't been determined.
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