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Ordinance Appropriating $3,427,210 to the Debt Service Fund to Prepay the Remaining Balance Due on the 2023B Taxable Variable Rate Loan Issued for the Acquisition of the Skyline Center
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Department: |
Finance |
Meeting Date: |
4/21/2026 |
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Contact Name: |
Michael Pirsch |
Public Hearing: |
No |
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Contact Phone: |
910-342-2771 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Ordinance |
PURPOSE:
This ordinance appropriates fund balance from the Debt Service Fund to prepay the remaining principal balance on the Skyline Center 2023B taxable variable-rate loan.
BACKGROUND:
The City of Wilmington issued a $23.8 million, taxable variable-rate loan as part of the $68 million acquisition of the Skyline Center. In addition to $6.8 million in regularly scheduled principal payments, $13.5 million in prepayments have been applied to the loan. Of that amount, $3.5 million originated from the reallocation of rail realignment funding, $500,000 was reimbursement for Water Street Deck and Skyline Parking Deck debt paid on behalf of the Parking Fund, and $9.5 million was from the proceeds of the following sales of surplus properties:
$ 752,500 302 Willard Street
525,000 1502 Wellington Ave.
750,000 320 N Front St.
600,000 222/226 S Front St.
495,000 1536 S Front St.
1,200,000 202 N Water St.
1,282,500 WPD Substation
3,967,790 1702 Burnett Blvd.
The current outstanding balance of the loan is $3,427,210 and is due in two installments: $3,400,000 on September 1, 2026, and $27,210 on September 1, 2027. This ordinance appropriates the fund balance of the Debt Service Fund to prepay the remaining balance and fully close out this loan on or about June 1, 2026.
BUDGET IMPACT:
$3,427,210 is to be appropriated from fund balance of the Debt Service Fund.
RECOMMENDATION / ACTION REQUESTED:
Passage of the attached ordinance is recommended.