Thea Bowman Leadership Academy in Gary

City of Gary bond bank gets first customer

Contributed By:The 411 News

Thea Bowman Leadership Academy wants lower interest rate on its construction bonds

Gary's bond bank is getting its first customer, a Gary charter school corporation looking to refinance its construction bonds.

The City of Gary announced in March the creation of the City of Gary Local Public Improvement Bond Bank. Tuesday's meeting of the Gary Common Council's planning committee heard a request from the Drexel Foundation for Educational Excellence, operator of Thea Bowman Leadership Academy, to use Gary's bond bank to refinance a $19.5 million loan.

The $19.5 million is the remaining balance from a 2009 Indiana Finance Authority loan to Drexel for the construction of Bowman's high school on west 5th Avenue in Gary.

By using Gary's bond bank, Bowman can expect a lower interest rate than it would get in the private bond resell market. Even in case of default, Gary's bond bank will not be held liable.

Drexel Foundation's request was heard as ordinance CPO 2020-56. The ordinance will move to the next city council meeting on October 6.

In March, Mayor Jerome Prince said he created the bond bank to help Gary save money.

Story Posted:09/25/2020

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