LORING — The Loring Development Authority Board voted to give the Maine Municipal Bond Bank a mortgage to the Loring golf course as a security measure in a deal intended to help upgrade the water treatment plant and distribution system at the Loring Commerce Centre.
The project initially involved the bond bank loaning $507,780 to the LDA and forgiving $203,122. Through this arrangement, the LDA would only have to pay $304,668 to get started on the needed upgrades to the water treatment plant and distribution system.
The Financial Authority of Maine (FAME) advised LDA directors that, since there is a small chance the $203,122 could be taken back or forgiven, giving the bond bank a mortgage to the Loring golf course would be a sufficient amount of security to satisfy the loan.
“The bond bank is happy,” LDA President Carl Flora said at the Jan. 25 meeting. “They have already voted to go with the bond and have not requested the golf course, but FAME has seen this as a technical necessity.”
According to Flora, the bond bank has no history of exercising their right to take back the forgiven portion of a loan.
“The key point in this deal is that the state revolving loan fund gives us $507,780, we spot the $304,668, and then we are able to complete a bigger project.
Upgrades to the water system are expected to be finished this season.
“I am sincerely hoping this is the last batch of money we have to put into the water system,” said Flora. “We’ve literally been investing millions into this system and it still isn’t working quite right but we should hopefully be good to go after this.”
