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County May Buy Properties
If commissioners give that authority, the county will issue tax-exempt bonds worth up to $10.5 million to buy parcels on Ottawa and Monroe avenues along with a five-story building on Ionia Avenue.
In May, the county announced it intended to issue bonds worth up to $16 million. But at that time
"There are other capital acquisition projects that are being discussed," said Robert White, county fiscal services director.
One of the purchases is an office building at
Three vacant riverfront parcels on
Frank Freund, CFO for American Physical Capital Inc. of
The county also would pay nearly $3.3 million for two parcels on
The three transactions total roughly $11.2 million, or $750,000 more than the maximum value of the bonds. But a portion of 82
That part of the purchase price comes to $753,449 and the county plans to finance that share through its capital improvement fund. White said the county couldn't finance that portion of the acquisition with tax-exempt debt.
The bonds would be issued as serial or term bonds without coupons, and in denominations of $5,000 and multiples of that amount. Interest rates would not average more than 5 percent per annum. The bonds for the
White said issuing bonds, rather than paying cash for the properties, would allow the county to keep its unreserved fund balance at nearly $26 million. With the uncertainty of future revenue sharing payments from the state, White thought bonding was the better choice.
County Chairman David Morren added that issuing a successful bond package would help keep
The county's Finance and Physical Resources Committee authorized the bond last Thursday. The full Board of Commissioners will vote on the proposal this Thursday, Aug. 26.