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Redevelopment commission holds first hearing on bonds to fund East Side firehouse; second hearing set Oct. 15
Summary
The Evansville Redevelopment Commission opened the first of two required preliminary-determination hearings on bond financing to build a new East Side fire station. Bond counsel and underwriters outlined timing, tax-levy backing and expected yields; the commission did not vote and scheduled a second hearing for Oct. 15.
The Evansville Redevelopment Commission opened a preliminary-determination hearing Oct. 1 on a proposed issuance of redevelopment district bonds to fund construction of a new East Side fire station.
Bond counsel Dennis Otten told the commission the issue requires two public hearings under statute and said the city council will be asked to adopt a related resolution following a formal introduction on Oct. 14 and a council adoption scheduled for Oct. 28. Otten said the plan targets a bond sale around Nov. 19 with a closing near Dec. 17, allowing proceeds to be held until construction begins.
Commissioner Randy Altman asked whether the bonds are general-obligation; Otten said the bonds will be payable from a property-tax levy of the redevelopment district (coterminous with the city) and described them as functioning similarly to general-obligation bonds while noting they will be tax-exempt. The commission discussed coupon and yield: an example 5% coupon in preliminary documents reflects a par coupon offset by expected premium, while underwriter Josh (Robert W. Baird) and analyst Jennifer Hudson (LWG) said current market conditions point to a true interest cost nearer 2.75% and an expected yield roughly between 3.0% and 3.5%.
Chief Knight, Evansville fire chief, outlined the public-safety case for the East Side station. Knight said the proposal is a redistribution of existing firefighters rather than a net increase in personnel: ‘‘We’re seeing higher volumes of run activity on the East Side…we’ve gotta start shifting resources to cover that gap.’’ He said moving a downtown ladder truck about a mile to Station 3 will preserve or increase firefighter availability downtown while improving response times on the East Side, projecting a reduction in some response times (for example, Arcadian Acres from about 7–7.5 minutes to roughly 5.5 minutes).
Commissioners asked about project scope and potential partnerships that could reduce cost, including reuse of existing commercial structures and adding multiuse elements such as classrooms or emergency-evacuation space to attract federal funding. Chief Knight said those options are under consideration and that the administration is evaluating commercial properties to reduce overall project cost.
No action was taken at the hearing. Bond counsel said the commission will hold a second preliminary-determination hearing at its Oct. 15 meeting, after which the commission may consider adoption of bond and appropriation resolutions. The city council must also approve the bonds before issuance.
