The Westfield Common Council on Aug. 25 voted 6-0 to approve Ordinance 25-49, a consent measure permitting the redevelopment commission and redevelopment authority to execute a lease and to issue lease-rental bonds to fund specified road and land projects.

Zach Klutz, outside counsel with the Taft law firm, told the council the ordinance “approves and consents to the RDC's and RDA's execution of the lease agreement” and authorizes the redevelopment authority’s issuance of bonds. He said the ordinance sets parameters that the bonds will not exceed $40,000,000 in principal, the lease and bond term will not exceed 20 years, and interest will not exceed 6 percent. He also described two updates since first reading: an increase in the maximum annual lease payment and a change in the project list.

“When this was first introduced on Aug. 11, the maximum annual lease rental payment...was not to exceed 5,500,000,” Klutz said. “The city's financial and municipal advisors have determined...payments up to an amount not to exceed 7,500,000.” He said the bond principal is unchanged and that the higher annual payment cap is intended to reduce total interest cost by allowing higher annual paydowns; precise amortization will be set when the bonds are priced.

Klutz and city staff also described a revision to Exhibit A of the lease, which removed three road projects previously listed and replaced them with Phase 2 of the Westfield Boulevard realignment (between Lantern Commons and 160th) and a new roundabout at 160th. John Nail, director of public works, said the overall schedule for the previously removed projects has not changed and that the changes were made to improve constructability sequencing for projects included in this bond issuance.

City representatives described financing options and contingencies: the increase in the annual payment cap is a backstop if the city does not secure a levy appeal (which would otherwise provide operational dollars); the increase is intended to allow the city to capture additional revenue if needed. The ordinance remains contingent on final bond pricing, expected in early October.

The council voted to adopt the ordinance on second reading by a 6-0 roll call. The ordinance was described in the meeting as enabling the RDC and RDA actions taken Aug. 18 and authorizing the RDC to levy a special benefit tax for lease rental payments, if necessary.