The site previously housed the former Kmart building and construction has been on hold while Brigham City applied for lower cost financing for the bond it will issue for half of the cost of the new building.
By applying to the State Permanent Community Impact Board (CIB), which administers state mineral lease funds, the city will be able to finance the bond at 1.5 percent interest rather than 4 or 4.5 percent interest on the commercial bond market. The difference is substantial for interest on $7.5 million over 20 years.
It is a small setback to delay construction when relative to the savings to the local taxing entities that have authorized their property tax revenues to be used by the city’s Redevelopment Agency for the project. The funding will become available Oct. 2.
Read more in this week’s Leader.