By Lynn Commero
The Intelligencer Journal/New Era
EAST LAMPETER TOWNSHIP, Pa. — East Lampeter Township supervisors are looking into applying for a tax-exempt loan of more than $1.4 million for construction of Lafayette Fire Company’s new building project.
Scott Shearer, managing director of Public Financial Management Inc. in Harrisburg, provided the supervisors May 2 with loan proposals from six banks.
After reviewing the loan terms of each of the banks, Shearer recommended that the supervisors choose Fulton Bank because it provides a variable-interest-rate option for the term of the loan, and the township could prepay or refinance at any time with no penalty.
Included in the $1,460,000 loan amount would be $4,500 in bank fees and $10,000 for the financial management company, Shearer said.
The annual debt service would be $50,000, he said.
Township Manager Ralph Hutchison said East Lampeter has had funds invested with Fulton in the past.
Lafayette fire Chief Ron Nolt said settlement on the new property will occur in June and construction on the new fire house should begin in the next few weeks. He is expecting “significant” bills to start coming in for the project at the end of June.
Nolt said the new building should be finished at the beginning of next year.
After the fire company sells its present building and contributions and grants start coming in, the fire company can start paying off the loan, Shearer said.
Copyright 2011 Lancaster Newspapers, Inc.