Town of Fitzwilliam, NH - Selectmen's Meeting Minutes 09/21/06

10:30 MEET WITH SUE HUNT FROM NORTHWAY BANK: Ms. Hunt stated that Northway is a new name for a couple of old banks that merged. Mr. Parker stated that we have signed a purchase and sales agreement to purchase this property. This includes about 350 acres made up of five parcels. We have had a building inspection of this property. There is a problem with radon. We have included a $4000 reduction for a system to correct this. $1,325,000 is the negotiated price. We have put down a $15,000 deposit. We have a closing date set for November 15, 2006. We have spoken with the bond bank. We have retained David Barnes as bond council. Mr. Parker explained that they are proposing purchasing the entire parcel and subdividing the house and barn off and selling them together. There is approximately $350,000 worth of timber on this property. Mr. Parker questioned if they would fund the entire project? Ms. Hunt stated for a municipality they would. We can put the revenue against this mortgage and re-amortize the loan. Mr. Parker stated that the advantage with the bond we can pay for two years only interest. With the bank we will have to pay principal and interest from the beginning. Ms. Hunt stated that the advantage of going with the bank you set your interest rate from the beginning. You are also paying for 22 years of interest with the bond bank. Ms. Hunt stated that they do construction financing for municipalities. She will look to see if they can apply this to this situation. Mrs. Thompson questioned what the closing costs are. Ms. Hunt stated that there are none. Mrs. Thompson questioned if some of the money from the proceeds of the loan can be used for maintenance. Ms. Hunt stated that the article would have to read this. Mrs. Thompson spoke with Dave Barnes and he indicated that we could not use the money from the bond for maintenance. We could use this money for subdividing. Ms. Hunt stated that if we financed with her bank, the money could be available in about a week after they sign all of the documents.