Milford Council approves $1.25 million bond anticipation notes to buy downtown parcels for redevelopment
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Summary
Council adopted Ordinance 26‑431 to issue taxable bond anticipation notes up to $1.25 million to acquire seven parcels in downtown Milford, with council saying the notes will be interest‑only initially and demolition costs will be pursued with outside funding; vote was unanimous.
Milford City Council voted unanimously Feb. 3 to authorize bond anticipation notes of up to $1,250,000 to acquire seven parcels downtown that the city has targeted for cleanup and redevelopment. The ordinance (26‑431) allows the city manager to execute purchase contracts and authorizes notes to be issued in anticipation of later bonds.
City Manager Ben described the financing plan as an interest‑only approach intended to avoid a large upfront payment. “So instead of writing a big upfront cost or check, what we effectively are doing is we’re paying interest on that principal amount,” Ben said, explaining the notes would be a short‑term tool while the city seeks a developer or other funding to pay principal.
Why it matters: Council leaders said owning the parcels will give the city control over redevelopment of a long‑problematic block — identified in the meeting as the former "fountain specialist" site and an adjacent High Street parcel — and will make it easier to attract developers and ensure projects meet the city’s vision. The ordinance allows the city to use non‑tax revenues and sale proceeds from the project to pay debt service and permits the manager and finance director to finalize interest rates and other terms through a certificate of award.
Details and conditions included in the ordinance: the notes may be issued in series, the bonds were described in the text with a tentative bond date of March 1, 2027, and the ordinance delegates to city officials authority to finalize terms consistent with the council’s action. The ordinance names KeyBank Capital Markets as underwriter unless another institution is specified and authorizes up to $50,000 for issuance‑related costs.
Public questions and demolition: During public comment, resident Eric Scholes asked what would happen after the one‑year interest‑only term and whether Milford taxpayers would be responsible for principal. Ben replied that if the city sells the property a buyer would pay principal, but if not the city could roll the note for up to 30 years as provided by the issuance documents. Ben said the city plans to pursue state funding and assistance from the Clermont County Land Bank to cover demolition of existing buildings and estimated demolition costs at about $150,000.
Council response and vote: Council discussed the item at length in the Committee of the Whole and members said the acquisition had been under consideration for years. A motion to suspend rules and adopt Ordinance 26‑431 passed on a unanimous roll call.
Next steps: The ordinance authorizes the city manager and finance director to execute closing documents and the certificate of award; the city will proceed with due diligence and condition precedent reviews noted in the ordinance text before completing purchases.
