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Council approves annexations, IRBs, bond sale authorization, development agreement and substation purchase
Summary
At its regular meeting, the Gardner City Council approved two voluntary annexations, an industrial revenue bond ordinance for a commercial expansion, authorized the sale of general obligation bonds and notes, approved a development agreement with Arise Homes and authorized purchase of a substation switchgear and certification.
The Gardner City Council on May 1 approved a package of items that included two voluntary annexations, an industrial revenue bond ordinance for Ford RV, authorization to offer general obligation bonds and notes for public sale, a development agreement with Arise Homes LLC and the purchase of substation switchgear.
The council unanimously adopted Ordinance No. 2830 to annex two parcels that join land already inside the city and later adopted Ordinance No. 2832 to annex two additional parcels intended for single-family development. The council also approved Ordinance No. 2831 authorizing the issuance of taxable industrial revenue bonds (IRBs) not to exceed $2.8 million related to Ford RV phase 1; the bonds will be used to allow a sales-tax exemption on construction materials and equipment and are not general obligations of the city.
Council members authorized staff to proceed with the public sale of general obligation bonds (Series 2025A) and temporary notes (Series 2025B) to reimburse costs for the Kill Creek Water Resource Recovery Facility Phase 2 expansion and to provide temporary financing for Tuscan Farm Phase 1B infrastructure. The resolution authorizing preparations for the sale was adopted by the council.
The council approved a development agreement with Arise Homes LLC for construction of a permanent sanitary sewer lift station that would serve the Arise Homes site and adjacent Lone Star Prairie development. The city agreed to reimburse specific sewer improvements, including up to $100,000 for additional forced-main footage and reimbursement of the gravity-line connection for the Lone Star Prairie development; staff estimated the city’s total cost at about $440,000 to be paid from the wastewater fund. One council member (Hussain) registered opposition during the roll call on the development-agreement motion.
Finally, council authorized execution of a purchase contract with Avail Power for switchgear for Substation 4 in the amount of $750,000 plus tax, and separately approved third-party certification of the switchgear for an additional $7,800 plus tax. Staff noted the selected switchgear will be certified by a third party and that prior experience with the vendor exists on other projects.
Votes at a glance
- Ordinance 2830 (voluntary annexations): Motion moved and seconded; ordinance adopted. Outcome: approved. - Ordinance 2831 (IRBs for Ford RV, principal not to exceed $2.8 million): Motion moved and seconded; ordinance adopted. Outcome: approved. - Resolution 2167 (authorize offer for public sale of GO bonds and notes — Series 2025A and 2025B): Motion moved and seconded; resolution adopted. Outcome: approved. - Development agreement with Arise Homes LLC (reimbursements for sewer lift station and connections; estimated city cost ~$440,000): Motion to allow the city administrator to execute the agreement as amended by staff; motion passed with one opposing vote recorded (Hussain). Outcome: approved (1 opposed). - Ordinance 2832 (voluntary annexations related to Arise Homes item): Motion moved and seconded; ordinance adopted. Outcome: approved. - Contract with Avail Power for Substation 4 switchgear ($750,000 plus tax) and certification ($7,800 plus tax): Motion moved and seconded; contract authorized. Outcome: approved.
The council also approved the consent agenda and the planning-and-zoning consent items earlier in the meeting.
