By Karen Reisner
Mike Bubany, David Drown Associates, Inc., addressed the city council at their May 22 meeting concerning a competitive sale of bonds to finance the 2023 Street Improvement Project.
City Engineer Craig Britton explained four bids had been submitted for the reconstruction of portions of Grand St. SE, Hawley St. SE, and Prospect St. SE, plus the rehabilitation of a portion of Grand St. SE. The proposals were considered using the Best Value Procurement method. It was recommended that the contract be awarded to Griffin Construction Co., Inc. with a bid in the amount of $1,759,308.26.
Councilor Mike Urban said he would like to have more certainty before awarding the contract. His concern related to the possibility of the U.S. government going into default if the debt ceiling is not raised in time, which could adversely affect interest rates. A one-point increase in the interest rate will increase the yearly payment by $15,000.
Bubany said there was no risk in going ahead with the financing process as a negotiated sale will take weeks. He noted that the city can get out of the bond process free of fees until the rating call. Councilors agreed to put off awarding the contract at least until the next city council meeting, June 12.
Bubany said the proposals will be received June 26 and considered by the council at their council meeting that evening. The general obligation bonds in the amount of $2,300,000 will have a 12-year term. There are three portions, including the tax abatement portion, disposal system portion, and the water portion. This will involve three revenue streams. He explained the tax levy increase will be mostly offset by a new tax base, due to the decertifying of a TIF District in 2025.
A resolution was adopted to call for a public hearing relating to approval of property tax abatement on June 26. The property tax abatement portion is to finance up to $1,020,000 of the costs associated with the improvements. The total amount of tax abatements will be collected over 12 years.
A resolution was then adopted providing for the competitive negotiated sale of $2,300,000 general obligation bonds.
Other business in brief
•Chris Giesen, EDA, explained the apartment building on Grand St. which burned late in 2022 was a total loss and has since been cleared. The owner, Main Street Properties, LLP, is planning to redevelop the site with a 14-unit apartment building. It will be a mix of one- and two-bedroom apartments. The owner has requested assistance through a redevelopment tax increment financing (TIF) district. The request is for $410,000 in TIF, allowing for up to a 20-year payback. The financial assistance is requested to make the project feasible. A motion was approved calling for a public hearing on August 14 on the proposed establishment of TIF District 3-6. The owner is responsible for costs associated with setting up the TIF District. Construction on the apartment building may start in August and be completed in March 2024.
•Mitch Irish will be promoted to Assistant Class B Wastewater Operator/Assistant Streets, effective November 6. He has obtained his Class B Wastewater Certification.
•A 2023 chip-sealing project was approved, which will include multiple streets. Pearson Brothers will do the work at a total cost of $48,304.
•The 2023 crack-filling plan, which includes multiple streets, was approved to be completed by Durst Outdoor Services at a cost of $25,969. Durst Outdoor Services will crack-fill at the Wastewater Treatment Facility at a cost of $1,084.50.
•Mayor John McBroom proclaimed May 2023 as Preservation Month, “Taking Chatfield’s Past into the Future.”
•October 15, 2023, will be recognized as Pregnancy and Infant Loss Remembrance Day in Chatfield.
•McBroom read a proclamation to designate the week of May 21-27, 2023, as Emergency Medical Services Week. The theme is “EMS Week: Where Emergency Care Begins.”
•Approval was granted for Chatfield Girl Scout Troop 48032 to install their “little free library” at the visitors center. The Troop will maintain the library.
•A donation of $1,500 from Beverly Jorde was accepted to benefit the fire department, ambulance department, and the police department.
•The city council will meet next on June 12.