DDA funding made possible by ANB Bank
A critical funding piece of the initial phase of the Avalon Cornerstone Project — $3 million committed by the Downtown Development Authority — was made possible through a favorable bond financing agreement with ANB Bank.
In December, ANB provided favorable financing for $7.3 million of borrowing via the DDA’s Tax Increment Financing, or TIF, capacity. Through a TIF, a portion of property and sales tax revenue from downtown properties is dedicated to the DDA.
“With this bond purchase, ANB Bank becomes an integral financial partner with the DDA, supporting our investment in the Avalon and our continuing improvements in the Downtown district that enhance economic vitality and property values in the center city,” DDA Executive Director Harry Weiss said in a press release.
Weiss was appreciative of ANB’s efforts to secure financing at an interest rate “significantly lower” than what they might have expected through the national municipal bond market. The blended interest rate on the bonds is about 4.5 percent, and the DDA will have an annual debt payment of about $900,000 for the next 10 years.
“We are proud to make this investment in the city of Grand Junction,” said Vance Wagner, regional president of ANB Bank. “The funds should end up putting hundreds of people to work, and we see this as a great economic stimulus for the community for years to come.”