State College Borough Council on Monday approved borrowing $10 million to refinance existing bond debt, construct parking facility improvements and acquire an unnamed building.
Chris Gibbons, of Concord Public Finance, said that interest rates are historically low and the borough will save on costs by combining all three into one 10-year loan. The proposal approved by council, from Riverview Bank, has a 1.59% fixed interest rate through the first seven years of debt service and a variable rate capped at 2.5% for the final three years.
The General Obligation Note will fund just over $4 million for design and construction of improvements to the borough’s parking garages and other facilities.