Otsego council approves lease and bond documents to advance single fire station; 1 dissent

The Otsego City Council voted Dec. 9 to adopt Resolution 2024‑86, authorizing execution of a ground lease, a lease agreement between the City of Otsego and the Economic Development Authority (EDA), and a continuing disclosure undertaking needed for the bond financing of a planned fire and emergency services station. The motion carried 4–1.

City staff and bond counsel from Taft Law outlined the documents and the disclosure obligations required by the Securities and Exchange Commission for the proposed bond. Representative Martin McGill attended to answer questions about the legal documents and bond counsel drafting.

Council Member Ryan Dunlap dissented during discussion and at the vote, arguing the decision would not reduce costs and warning that creating a municipal department and a single station could raise long‑term expenses. "The idea that owning our own municipal fire department will allow us to control the costs or that it will be cheaper than the contracts is not grounded in reality," Dunlap said, arguing the city's current contract arrangements spread costs across providers and achieved economies of scale.

Supporters of the measure said adoption of the lease and disclosure documents is a necessary step to secure financing and move the project forward. The resolution authorizes the city to finalize the lease agreements with the EDA and to comply with ongoing bond disclosure requirements.

The council recorded the outcome as approved by a 4–1 vote. The motion was made and seconded on the council floor (motion text recorded in the public record). The council did not provide an individual roll‑call vote in the transcript; the tally announced was 4 in favor, 1 opposed.

Next steps: with the resolution adopted, staff and bond counsel will finalize and execute the ground lease and facility lease and prepare the continuing disclosure documents required before bond sale and closing.