Cold Spring City Council approved a measure at a special meeting last week to secure a $5.5 million loan to repay the Campbell County School District for money it provided to the courts to seize the public property for a new middle school in 2021.
The property in question is the site of the former Disabled American Veterans property at 3725 Alexandria Pike. This marks a final step in the years-long battle over who has the rights to the land.
After a July Campbell County Board of Education meeting, the board voted to sign and accept a settlement agreement and mutual release of claims between the city of Cold Spring and the board.
City Attorney Brandon Voelker and Mayor David Penque assured council members that this loan would not impact the city’s bottom line.
“Having the collateral in the form of the CD helps us get a more favorable interest rate than what the current federal rates allow,” Voelker said. The loan requires interest-only payments from the city at a rate of 6.5% for the first two years with no prepayment penalty.
The city plans to prepare the property for future sale and development.