An essential component associated with redevelopment of the former Three Rivers Inn was solved Tuesday by the St. Joseph County Board of Commissioners.
The board approved a resolution to authorize issuance of general-obligation bonds. The result will eventually be $3.6 million to help finance the conversion of the 100-room hotel into Commission On Aging headquarters and 46 senior-housing residences.
Attorney Roger Swets, from the Grand Rapids-based firm Dickinson Wright, said a North Carolina-based bank has offered preliminary terms “that seem to be pretty good for a bond issue of these parameters.”
He said the bank is proposing a fixed interest rate of 3.90 percent for the first 15 years. Swets said the bank has the option to amend the rate for the second 15 years of the bond issue. He indicated it will be a market rate set in the same manner the initial 3.90 percent figure was set.
Tim Stoll, COA director, said securing the funding to pay for the redevelopment is the final step before construction begins later this year.