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~ From: Craig Luedeman <br />To: BWasson <br />Date: 6/1 /98 1:59pm <br />Subject: MC Housing Authority Space in Courthouse Square <br />Billy: Before you came on board, I discussed MCHA's option of buying space in CH2 with RC because we have our <br />own bonding capacity. At the time, we dropped it because it was difficuft to nail costs down enough to decide the <br />amount of the bond principal. Then the whole thing went south and we haven't considered it again until now. <br />At that time, RC didn't see any problem with our doing it from the county's financing perspective...in other words it <br />wouldn't shift costs thereby hurting the project or other lessees. We would simpy pay for our space using the <br />bonds. But at that time we couldn't have saved any money on the interest rate, so we dropped it. <br />You are probably shaking your head in disbelief and thinking, "What other surprises are still out there?" Can't <br />answer that one, but the purpose of this memo is to inquire about this option at this time. We are a small agency <br />and a few points of interest can make a big difference in total cost ff purchase is a live option. We could lock in our <br />bond rate (given that it is still attractive) right away and limit the risk that rents will go beyond our ability to pay if <br />CH2 rates are higher when you finally do your financing. <br />I need an update on this option if you can get it to me. Obviously, it would have to be neutral in its impact on CH2 <br />for me to bring it to the Board. But I thought we should find out if this is an option. If you need more detailed info, <br />Dennis Kilfoil, our Finance Officer, can help. Just e-mail him: dkilfoil@open.org, or call,him at 373-4448. Thanks, <br />Craig <br />CC: dkilfoil <br />