Members of the Nesquehoning Water Authority voted to approve a proposal from Jim Thorpe National Bank to finance the authority's water tank project.
Solicitor Robert Yurchak had approached several banks, however, JTNB was the only one to submit a formal proposal.
The authority will be able to borrow on the note, up to $751,000 for a 249 month term at a fixed rate of 3.87 percent. The first nine months of loan payments during the construction period will be on interest only and the principal payments will commence after that period.
Should the authority need to borrow the full amount, monthly payments will be just under $4,500 and the authority has the ability to prepay the loan without any penalty.
The loan is necessary to pay for project expenses that were not covered under the grant that was received and to pay expenses until such time that they can be reimbursed from the grant funds.
Authority members will be appointing a construction liaison in the next few months who will have the ability to make minor decisions as they arise during the tank construction. The appointment will help to avoid delays in construction in lieu of waiting for the monthly meetings to seek water authority members approval.