Block · one region of the page, as the scanner read it. It may hold a whole story, part of one, several, or an advertisement; stitching blocks into articles is the next step. Text is supplied OCR.
Page 1 · column 1 of 9 · from the scan, no model involved
By DAPHNE HITCHINSON
Kappiihannmk News Staff Writer
“Baker Watson Company is a very fine investment banking firm, as good as any on the field,” said investment expert James P. Jamieson, advising Rappahannock's Water and Sewer Authority Monday on the reputation of the company that has proposed to provide interium financing for Sperryville’s sewer system.
He described the company’s proposal as “the normal way to approach interum financing for peojects such as this."
According to Jamieson’s explanation, what the investment firm is offering, in essence, is a loan of $2.1 million, the amount of grants from the federal Environmental Protection Agency and the state’s Department of Housing and Community Development awarded for the sewer system. The money would be borrowed at (i'/j percent interest (with interest free notes offered investors) and the investment firm would then invest the $2.1 million at 10'/i percent, earning the Water and Sewer Authority a profit — depending on the investment firm’s charges and legal fees — of between $93,000 and $30,000. The loan would be repaid as reimbursable grant funds are received by the WSA.
The proposal “takes advantage of the differential in yield” and “insulates (the WSA) against cash flow difficulties,” Jamieson said. “You would be doing a conventional banking operation,” he said, adding that the profit angle has the approval of the Internal Revenue Service.
Before the WSA can begin to do business with' the investment firm, Jamieson continued, it must have EPA and block grants abso
67.4%