Pine Township Speeds Up Payments on $10 Million Debt

Board of Supervisors vote to pay down $865,000 on loan used to build Pine Community Center and fire station.

Pine Township reached the halfway mark this week in paying off the $10 million borrowed to finance construction of .

The Pine Board of Supervisors voted 5-0 Tuesday to make an $865,000 pre-payment on the principal on an loan, bringing the total owed to $5 million.

Supervisors Chairman Michael Dennehy said the original $10 million borrowed in 2006 also included funds to build the new fire station for , which provides fire protection services to the township. 

The decision to make the pre-payment is a simple one, Dennehy said.

"Just do the math," he said. The money sitting in the bank is drawing only about $600 a month in interest while the township pays $15,000 a month for the loan, Dennehy said.

Paying down the principal saves money on interest payments.

"It's like paying off a mortgage," he added.

The community center opened in January 2009 and

This is not the first time, Pine has made pre-payments on the loan. Here is a timeline on the loan and payments:

September 2006—Pine borrows $10 million from S&T Bank to cover costs of Pine Community Center and new fire station for Wexford Volunteer Fire Company. 

August 2009—Supervisors vote to make $1 million pre-payment on the loan.

September 2010—Supervisors vote to refinance loan with two notes for a total of $8.5 million. 

  • ESB Series A Loan for $5.9 million would have a fixed interest rate of 3.55 percent because the township agreed to use ESB as its main depository throughout the life of the loan.
  • ESB Series B loan for $2.6 million would have an interest rate of prime minus 0.25 percent with a rate cap of 4.35 percent.  

December 2010—The township makes a $920,000 pre-payment on the Series B loan.

November 2011—The township makes a $1.7 million payment, which paid off the Series B loan in full.

September 2012—The supervisors vote to make an $865,000 pre-payment on the ESB Series A loan.



Keeping up with news in the Pine-Richland community is easy—simply sign up for our daily email newsletter, like us on Facebook, and follow us on Twitter.



More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »