Council approves action for water loan
The Fort Myers Beach Town Council approved a letter of engagement with Nabors, Giblin and Nickerson for legal services as bond counsel related to Revenue Refunding Note, Series 2007 of a water utility loan. Town Manager Terry Stewart and Town Attorney Anne Dalton will work with the legal team in the roll-over of the $3,060,000 debt due August 6, 2010, issued by SunTrust Bank.
The action to involve legal services is necessary due to the note’s guarantee and the complexity of the current financial markets and note compliance issues.
Stewart recommended staying with SunTrust instead of going to Request for Pricing status.
“It’s my understanding that our finance director and I have no reason to think otherwise that our relationship is unprecedent and excellent (with Suntrust),” he said. “Other reasons you might want to think about staying with your current lender has to do with the condition of the loan covenants. With regards to the RFD process itself, I think we would be spinning our wheels in doing something which we will get little or no response.”
Stewart, who said it is not a normal recommendation for him to forgo RFP, has been in contact with SunTrust. The instituation is ready to support the extending of the loan and willing to look at all future issues regarding the matter. The loan note dates back to August 2007.
“There was a referendum that was presented to Fort Myers Beach, and I think it had a 96 percent approval rate,” said Mayor Larry Kiker. “But, at the same time, with the advice of Ms. Dalton and others it was decided that we shouldn’t follow that referendum for whatever reason.”
Dalton said the reason stemmed from “the deed analysis and financial dollars that were not available for the referendum.” She did suggest that the town move forward with the refunding note at this point.
The scope of work will include the letter being submitted to the Town of Fort Myers Beach Public Works Services, Inc. for review and approval at its annual meeting.
The council will have its next meeting on March 15, at 9 a.m.