Utility trustees approve payment to Equity Bank for YMCA pool
Ponca City Now - March 12, 2019 9:55 am
The Ponca City Utility Authority trustees voted Monday night to approve paying nearly $1 million to Equity Bank to purchase the YMCA’s ownership interest in the aquatic portion of the former Ponca City Aquatic and Family Center – YMCA.
The buyout of the YMCA interest was authorized in Addendum No. 3 in June 2017 by the Ponca City Board of Commissioners. The aquatic center construction costs were the YMCA’s financial contribution to the building.
The rest of the facility was funded through revenue bonds through the Ponca City Utililty Authority, which have been paid for through a half-cent sales tax.
The YMCA operated the facility and experienced financial difficulties. The YMCA’s Board of Directors sought a line of credit from Eastman National Bank to continue its operations, putting the aquatic ownership interest up as collateral.
Addendum No. 3 allowed the ownership interest to be purchased by the City of Ponca City from the YMCA, with funding provided by PCUA. The YMCA defaulted on the loan, which was acquired by Equity Bank when it took over Eastman. The bank receives the buyout funds to satisfy any outstanding debt. The trustees approved paying $992,500 in principal and $3,446.36 in accrued interest.