The Otsego Economic Development Authority (EDA) meeting held on November 12, 2024, focused primarily on the proposed issuance of lease revenue bonds to finance the construction of a new fire and emergency services facility. The meeting included key presentations and discussions regarding the financial plan associated with this initiative.

City officials, including the city planner and council members, convened to approve previous meeting minutes and discuss the financial implications of the bond issuance. Jessica Green from Northland Securities presented a draft finance plan, outlining a proposed bond size of $18.42 million, which includes a $2 million cash contribution to the project. The proposed structure suggests a 20-year term for the bonds, which is expected to minimize overall borrowing costs for the city.

Green emphasized that the bond issuance would not involve a general obligation pledge, meaning the city would make lease payments to the EDA to cover debt service. The bonds are anticipated to mature annually from 2027 to 2046, with an estimated interest rate of 4.26%. The EDA is set to receive competitive bids for the bonds on December 9, 2024, with the possibility of closing the bond sale by the end of the year.

During the meeting, council members raised questions about the bond's interest rate and its implications for the city's debt limits. Green clarified that while the bonds would be subject to the city's debt limits, they would not affect the levy limits established in previous years.

The EDA is seeking feedback from council members on the proposed financial structure and next steps, with the aim of finalizing the bond issuance process in the coming weeks. This initiative represents a significant investment in the city's emergency services infrastructure, reflecting Otsego's commitment to enhancing public safety and community resources.