Otsego EDA approves moving forward with lease-revenue bonds to finance new fire station, 3–1

The Otsego Economic Development Authority voted 3–1 on Nov. 12 to move forward with the competitive sale of lease-revenue bonds to finance a new fire and emergency services facility and approved a municipal advisory agreement with Northland Securities. The EDA also scheduled a Dec. 9 meeting to consider awarding the bonds.

Jessica Green, a representative of Northland Securities, told commissioners the draft finance plan under discussion would allow an issuance sized for about $18.42 million, including a proposed $2 million city cash contribution and a 20-year amortization as the staff-recommended starting point. "The purpose of the bonds, of course, is to finance the fire and emergency services building," Green said. She described the estimate for true interest cost as "currently ... 4.26%," and emphasized the figure is preliminary until bids are received.

Why it matters: The structure chosen affects both the city’s overall borrowing cost and the annual tax levy residents…