Greenville council authorizes up to $1.5 million in downtown development bonds
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Summary
The Greenville City Council on Feb. 21 approved Resolution No. 23-04 to issue Downtown Development Bonds not to exceed $1.5 million to fund DDA projects — security cameras, technology upgrades and parking improvements — and delegated sale and execution authority to city officers; related TIF-funded contracts were awarded contingent on bond sale.
Greenville, Mich. — The Greenville City Council voted Feb. 21 to authorize the issuance of Downtown Development Bonds, Series 2023, in an aggregate principal amount not to exceed $1,500,000 to fund projects in the Downtown Development Authority’s 1997 Development Plan and Tax Increment Financing Plan.
The council adopted Resolution No. 23-04 on a 6–0 vote, with Councilperson Cunliffe absent. Councilperson Lehman introduced the resolution and Councilperson Johnson seconded. The bond proceeds are designated for a package of downtown improvements that the DDA identified as including security enhancements (networked video cameras and centralized storage), communication and public-address improvements, public Wi‑Fi and other technology upgrades, renovation of existing public parking lots and acquisition or construction of new public parking.
Under the resolution, the bonds will be general obligation limited tax bonds payable primarily from Tax Increment Revenues generated within the DDA’s development area; the city also pledges its limited-tax full faith and credit as a secondary source. The Authorized Officer (Mayor, City Manager or Clerk/Finance Director) was empowered to negotiate the sale and finalize terms within limits set in the resolution: a par amount not to exceed $1.5 million, an interest rate not to exceed 7% per annum, and a final maturity no later than April 1, 2033.
The resolution authorizes customary bond mechanics — registration, paying agent, creation of construction and debt-service funds, optional and mandatory redemption provisions — and allows the Authorized Officer to engage placement and bond counsel. The council named Dickinson Wright PLLC as bond counsel in the proceedings recorded in the minutes.
Council members noted the bond will be used to support specific DDA projects already identified in the DDA’s plan. Several procurement awards tied to the DDA/TIF projects were approved during the same meeting but made explicitly contingent on the successful sale and delivery of the bonds: an award to Metro Signs & Lighting for downtown parking and wayfinding signs not to exceed $74,995; an award to Michigan Paving and Materials for milling, repaving and/or sealcoating of downtown parking lots not to exceed $531,492.88; and an award to Hillard Electric for downtown technology upgrades not to exceed $387,191. Each award was moved and adopted unanimously with the contingency noted in the motions.
The resolution gives the city flexibility to structure the sale (including negotiated sale and book-entry options), and directs city officers to complete applications and certifications required by state and federal authorities to effectuate the sale. The council’s action allows the Authorized Officer to proceed with sale negotiations; final sale terms will be reported back once the bonds are placed.
The meeting record shows no further public comment on the bonds during the council’s deliberations. The council adjourned at 8:45 p.m.