Hyattsville, Maryland Development News

Public Hearing Held for UTC Bonds Advance Refunding to Lower Interest Rates

The council held a public hearing for an advance refunding of UTC bonds originally issued in 2004. This refunding aims to allow individual owners of units at the UTC to benefit from lower interest rates. No new or additional debt is being added, and the city is not responsible for the repayment of this debt; it remains the responsibility of the UTC project owners. The proposed resolution allows for a maximum interest rate of 8% per annum, which provides flexibility due to market changes, even though the goal is to achieve savings. The financial advisor, Mike Sutsina, and bond counsel, Alan Kasen, explained that the 8% is a coupon rate and not the actual interest rate paid, and that the transaction will only proceed if industry-standard minimum present value savings of at least 3% are met. The process has been underway for at least five to six months, with earnest work over the last three months.