Kent County Levy Court chooses bank for rec center construction loan

DOVER – After issuing a request for proposal to eight banks in February, Kent County is now one step closer to financing the new recreation center.

Five banks submitted proposals for the $5 million loan sought for the $10 million recreation center. After evaluating the submissions, Susan Durham, the county’s finance director, recommended obtaining a loan through WSFS.

Although there were several submissions with similar proposals, the county already banks with WSFS and sticking with the same institution would prevent the need to transfer funds, officials said.

Ms. Durham suggested a 15-year “floating rate” loan. Although the county would typically stick with a fixed-rate loan because it is a more conservative approach, the floating rate starts at 1.4 percent while the fixed rate is about 3 percent.

At the 1.4 percent floating rate, the county can expect to pay about $370,000 per year to pay the loan off.

The floating rate may begin to increase as soon as next year but WSFS offers the option to negotiate to a fixed rate loan as long as the remaining balance is paid off within 10 years of the negotiation.

With the support of all seven commissioners, a motion will be drafted before the next meeting to select the floating rate loan with WSFS where it will be voted upon.

Levy Court’s next meeting is Nov. 10 at 7 p.m. at 555 Bay Road in Dover.

Reach staff writer Ashton Brown at abrown@newszap.com. Follow @AshtonReports on Twitter.

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