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Consider/Discuss/Act on a Request for Approval of a Project to Construct an Indoor, Youth Multisport Facility by Plano Sports Authority (PSA) and Funding of an Equity Loan in the Amount of $3,200,000 by McKinney Community Development Corporation, to Facilitate the Project
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MEETING DATE: October 15, 2013
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible
President
RECOMMENDED CITY COUNCIL ACTION: Approve
ITEM SUMMARY:
· The MCDC board approved a project grant application for construction of a youth multisport facility, by PSA, in McKinney. The project application included a request for MCDC to fund an equity loan in the amount of $3,200,000 in support of the project.
BACKGROUND INFORMATION:
· Founded in 1971, Plano Sports Authority (PSA), a 501(c)(3) organization, submitted a project grant application to MCDC for construction of an approximately 90,000 square foot multisport facility in McKinney (PSA-McKinney) for youth basketball, volleyball, soccer, flag football, skill training and camps. The location of the proposed facility is Gabe Nesbitt Park. Total estimated project cost is $9,700,000. PSA requested an equity loan, of $3,200,000, which represents 33% of the project cost, from MCDC in order to facilitate an accelerated timeframe for design and construction of the facility.
FINANCIAL SUMMARY:
· Total estimated project cost is $9,700,000. PSA will secure a bank loan for $6,500,000 of the project cost. Funds requested, in the form of an equity loan from MCDC, total $3,200,000. The term of the loan would be four years; interest on the loan would be calculated at the same rate as the commercial bank loan secured by PSA; no interest would be charged if the loan was repaid within three years; interest would be assessed in year four; full loan repayment will be required within four years; no penalty will be assessed for early repayment.
BOARD OR COMMISSION RECOMMENDATION:
· MCDC Board recommends approval of the project to construct an indoor, multisport facility at Gabe Nesbitt Park and funding of an equity loan in the amount of $3,200,000 by MCDC.