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The land is the Hull Farms property at E. Milton Harmony Townline Road and N. Vickerman Road. The city still needs to fund the purchase of the land, so that is why there was a new loan approved.

The decision, which was unanimous, came after the council rescinded action taken Dec. 2 accepting terms on a $3 million loan also for 11 years from the Bank of Milton. The interest rate was 4.95%. According to a memo from City Administrator Paul Hensch, staff found that the loan would have to have been issued as a taxable obligation because the property is intended for future development and potential private use.

β€œAs a result, the authorized borrowing no longer aligns with current financial and strategic planning,” Hensch’s memo states, adding that β€œthis measure reinforces financial transparency and prevents confusion regarding the City’s financing plans.”

No loan documents or binding obligations were executed with the Bank of Milton, according to the memo.

The city also received another proposal for the $3 million and 11 years from the Bank of Milton with an interest rate of 6.75% and total cost of just under $4.4 million. First Community Bank also submitted a proposal with those terms with an interest rate of 5.44%.

To pay off the loan, the city will draw funds from Tax Increment District 9, which is the eastern portion of the business park.

The council also approved authorizing executing documents for closing on the purchase of the property. The purchase will be just under $2.8 million plus closing costs.