COEUR d'ALENE — The city’s urban renewal agency decided Wednesday to refinance $8.7 million owed to Washington Trust Bank, a move agency officials say will save $575,000 in interest.

Tony Berns, executive director of ignite cda, said the loan was taken out with Washington Trust Bank five years ago, when the agency was funding McEuen Park. Berns told The Press that ignite and Washington Trust put a provision into the agreement that allowed for the interest rate, currently at 3.26 percent, to be reset on Sept. 30.

Berns said ignite cda’s board asked for proposals from financial institutions, noting the interest rate reset provision and the fact that there is no penalty for prepayment.

Ignite received proposals — from Mountain West Bank, Banner Bank, and Washington Trust — with interest rates ranging from 1.25 percent fixed to 2.49 percent fixed. Washington Trust's proposal had the lowest interest rate, 1.25 percent, and the board voted unanimously in favor of it.

According to documents provided by Berns, the board's decision will result in $575,000 in savings. The loan term is set to expire in 2021, which coincides with the closure of the Lake District, one of two urban renewal districts under the ignite umbrella.