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Council adopts initial resolution to enable industrial revenue bond refinancing for East Johnson project
Summary
The Fond du Lac City Council on Jan. 22 approved an initial resolution to allow industrial revenue bond financing for projects at 1125 East Johnson St. and 6663 Rolling Meadows LLC, beginning a 30-day public notice period before a final vote. City staff said the mechanism carries no liability for the city and aims to secure lower borrowing rates.
The Fond du Lac City Council voted unanimously Jan. 22 to adopt an initial resolution permitting taxable industrial development revenue bond financing for projects at 1125 East Johnson St. and 6663 Rolling Meadows LLC, triggering a 30-day public notice period before the council considers a final resolution.
Community Development Director Miss Benson said the city has “very few tools that we can use to facilitate economic development,” and described industrial revenue bonds as a specialized, statutory financing mechanism that acts as a pass-through for a developer. “There is absolutely no liability whatsoever for the city,” Miss Benson said.
Nut graf: The measure does not create a city obligation but allows the developer to refinance costs using the city as a special issuer, which staff said can result in lower interest rates for the borrower. The council’s vote starts a statutorily required public-notice period; the council expects to consider a final resolution in February.
Miss Benson told the council the tool is available only for projects meeting specific statutory requirements and consistent with the comprehensive plan. She said the project at 1125 East Johnson — described in staff comments as “Johnson Crossing” or “Festival Foods Plaza” — has previously produced local jobs at that location. Miss Benson reported 37 jobs at that site and three at a related retail location.
Councilmembers asked about timing and liability. Mister Heisler asked for the timetable after the initial resolution; Miss Benson said the notice provides a 30-day window during which the borrower and attorneys will negotiate final documents and interest rates and that staff expects a final resolution in February. Miss Leering and Mister Mullen asked to confirm the city’s lack of liability and whether the arrangement lowers the borrower’s rate; Miss Benson answered affirmatively.
Action: Motion to adopt the initial resolution was made by Mister Heisler and seconded by Mister Mullen; the motion passed unanimously.
Ending: The council’s vote authorizes the city to act as special issuer for the financing, with legal and financial details to be negotiated before a final resolution. The public-notice period required by state procedure begins with publication of the notice in the newspaper.
