CONSTANTINE, MI (WKZO AM/FM) – The Constantine village council has begun the process to build a new fire station.
The council Monday voted 6-1 to adopt a resolution establishing a Village Building Authority to help get funding for the a new fire station.
Discussions on financing options for the new station at 175 North Washington Street began at an October 16 council meeting. Roger Swets, bond attorney at the Dickinson-Wright law firm provided a memo outlining two options for financing it, stating the estimated cost for a new fire station would be approximately $2,700,000, although the price may have gone up due to rising material costs.
Swets said that setting up a building authority is necessary when applying for a federal World Development loan, with lower interest rates. He said the two financing options available to pay the village’s share of the fire station project were a general obligation tax bond (a GOLT bond), and a building authority bond.
“GOLT bonds are the only feasible way for the village to finance of projects such as fire trucks, streetscape improvements, sidewalks beyond what can be financed with Michigan Transportation Fund bonds. Building authority bonds can be used for any village building project. Their use would preserve the GOLT bond limit for other projects that may come along,” he said.
A building authority must be established to issue a building authority bond. Swets estimated it would take 45-60 days to set it up. It would have three members.
The fire station facility site would be transferred to the building authority. They would then contract for and build the project, issuing the bond necessary to finance it. The village would lease the fire station from the building authority and would be responsible for any expenses of the facility. When the bonds are paid off, the building authority’s interest in the facility would transfer back to the village.
(additional reporting from Angela Birdsall)
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