City to sell bonds for Business Technology park infrastructure

By DEB WUETHRICH

As the city prepares to hold an official groundbreaking ceremony at the Tecumseh Business and Technology Campus on Monday, March 8, at 11 a.m., Tecumseh City Council members authorized the sale Monday night of the Limited General Obligation Bonds of $1.1 million that will fund initial infrastructure for the project.

“What this will do is authorize the city manager to participate in the negotiations process,” Tecumseh City Manager Kevin Welch informed council members prior to the vote. He said the bonds either would be part of Build America Bonds (BABs), which are connected to the stimulus package, or general obligation bonds.

“What will determine which way we actually sell them will be which one has the better interest rate,” said Welch. He said he expected that the bonds would be sold around April 1.

Welch also shared tables demonstrating payment schedules for the bonds over 10 years. He said the plan would be for the city to be able to pay some of the debt down while also paying some interest, which he said would be a good way to do it.

“A reduction in our interest rate also could save approximately $200,000 in interest costs over the 10-year period,” he said.

The bond funds already have been allocated in the budget for infrastructure work at the Tecumseh Business and Technology Campus. Funds will match a grant from the Economic Development Administration for the work of putting in roadways and utility services for a portion of the campus.

The council members also approved a letter of agreement with the International Union of Operating Engineers, Local 547, regarding a July 1, 2010 wage increase. The union represents Utility Plant employees and two City Hall employees.
“This letter foregoes that previously negotiated pay raise,” Welch said. “This bargaining union very willingly understood the financial situation our community is in and was very sensitive about that issue and agreed to forego that pay raise.”
In other business, the council members:

• Approved 2010 membership dues to Lenawee Economic Development Corporation in the amount of $3,750 per quarter. “We believe this is an important organization to have in our county,” said Welch. “Every tool we can avail ourselves of to help stimulate our economic development, especially in the city and county as a whole, should be taken.”
• Accepted a bid from Contech Construction Products of Sylvania, Ohio, for $7,800, to provide material for the N. Union St. bridge. Department of Public Works Superintendent Duaine Wells said the work consists of adding an interlocking block that will help catch debris and work toward erosion control.
• Approved the city’s participation in a road salt bid plan with prices to be determined at a later date for 1,100 tons of salt for next year.
• Approved application of Short Street into the city’s local street system for inclusion in the Act 51 funding system for roads.