BANKING INDUSTRY: ‘THANKS, BUT NO THANKS…’
In preparation for the March 15th referendum on the purchase of Peary Court, the City sent out requests for bids to various banks. The City retained PFM, Inc [Public Financial Management] to help collect those proposals that would provide information on how the City would finance the 55 Million dollar purchase.
However, only one bank was interested. But even that bank, Centennial Bank, has rejected one of the fundamental conditions for the deal: The City wants the loan to be secured only by the rent roll and the property and it’s spelled out that way in the referendum. However, Centennial is offering to lend the money only if the loan is backed by a “general obligation of the City of Key West.” In other words, taxpayers would guarantee the loan together with whatever assets the City possesses.