MRRA Pays off $3 Million Navy Note
NASB Redeveloper’s Rapid Growth Prompts Early Settlement of Economic Development Conveyance Property Deal with Federal Government
ARLINGTON, VA — Officials from the Midcoast Regional Redevelopment Authority today presented a $3 million check to the U.S. Navy as part of its obligation for its economic development conveyance (EDC) at the Association of Defense Communities National Summit. The significance of this action is that MRRA is paying off the total note 10 years before it is due, saving about $1 million in interest and bank charges.
“This action represents the types of sound fiscal management decisions that are made by the MRRA Board of Trustees in their oversight of the NASB redevelopment effort,” Executive Director Steve Levesque said.
The ability for MRRA to accomplish this loan payoff is due to the speedy transfer of the property from the Navy and the subsequent rapid redevelopment activity to date at Brunswick Landing and Topsham Commerce Park.
MRRA had planned to begin paying down the loan this coming year in installments, with a balloon payment for the balance in ten years. Instead, with today’s payment, MRRA has paid off the note completely.
“We’re able to pay off the principal earlier than we expected,” Levesque said. “That will help us free up some funds sooner for much-needed infrastructure and property improvements that otherwise might not be in the budget for us, which is important as we continue to work toward our redevelopment goals.”
The other element of EDC deal is a revenue sharing formula with the Navy over the next 20 years, where they share a portion of gross sales and lease proceeds.