The Norwalk City Council, acting as the Redevelopment Agency, has agreed to consider a proposal to refund its 1985 tax allocation bonds for a savings of $1 million. The agency raised $15.2 million from the sale of securities, a common means of raising money for redevelopment projects. The money is paid back at 9.1% interest.
James Chilton of Chilton & O'Connor Inc., an investment banking firm, will submit a proposal to refund the bonds at 7.1% interest. The refunding will result in substantial savings to the city.
"Now is the time to do it," Chilton told council members, who expressed concern that interest rates may begin to climb again. The council directed the firm and city staff members to prepare an agreement for consideration Feb. 23. The council also said that a special meeting will be called if interest rates change substantially between now and then.